--- title: Does the Federal Government Have Free Debt Relief Programs? description: While the federal government does offer some programs to help people struggling with debt, none focus on unsecured debts like credit cards. authors: - name: Lindsay VanSomeren url: https://money.com/author/lindsay-vansomeren/ at_money_since: 2025 articles: 22 covers: - Personal Finance - Insurance - Retirement - Shopping former_staff: true editors: - name: Kaitlin Mulhere role: Editor url: https://money.com/author/kaitlin-mulhere/ bio: Kaitlin Mulhere has been covering the intersection of college and personal finance since 2015. She enjoys breaking down the complexities of college costs and financial aid, and she also runs Money’s Best Colleges. education: University of Florida at_money_since: 2015 articles: 218 covers: - Personal Finance - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Retirement - Shopping - Taxes social: - https://twitter.com/KMulhere - https://www.linkedin.com/in/kaitlin-mulhere-64503048/ published: '2026-10-20T21:23:18.000Z' modified: '2026-10-20T21:23:18.000Z' section: Personal Finance tags: - Sponsored word_count: 1028 canonical: https://money.com/free-government-debt-relief-programs/ type: Article source: structured-blocks --- > **Disclosure:** We may earn a fee if you click on the links below. Compensation does not determine ranking. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Does the Federal Government Have Free Debt Relief Programs?](https://img.money.com/2025/02/Debt-Relief-Government-Programs.jpg?quality=85&w=1012&h=569&crop=1) Sponsored by: ![](https://s3.consumersadvocate.org/prd/image/image/36459/0c092e44-f67c-4815-b57c-0d6f9a4147fd.webp) Over 1 million people have chosen Freedom Debt Relief to kick their debt to the curb. Get rid of unsecured debt for less than you owe and free up cash each month with their highly-rated program. [Go To FreedomDebtRelief.com](https://money.com/pr/k2f87452be59?ap_referrer=%2Ffree-government-debt-relief-programs%2F&apxa1=homepage) ## Key Takeaways - Many borrowers with unsecured debt are struggling to keep up with their bills. A 2026 Freedom Debt Relief [survey](https://www.freedomdebtrelief.com/learn/debt-solutions/deep-in-debt-borrowers-are-cutting-back-but-still-struggling/) found that among borrowers who owe at least $10,000, 20% are behind on at least one account. - Borrowers with federal student loans, tax debts and federally-backed mortgages or business loans through the Small Business Administration may qualify for free assistance programs. - For other types of debt, you’ll have to work directly with your creditor to enroll in a hardship program. You can also consider other debt management options, including credit counseling, debt settlement or bankruptcy. Getting out of debt can be a long process, especially when high interest rates make it difficult to gain ground. In a recent [survey](https://www.freedomdebtrelief.com/learn/debt-solutions/deep-in-debt-borrowers-are-cutting-back-but-still-struggling/) by Freedom Debt Relief, 28% of people with at least $10,000 in unsecured debt said they could afford only the minimum payments, while another 20% were behind on at least one account. If you’re one of those struggling borrowers, you may be wondering whether the government can help. There are several free government debt relief programs, but they’re generally limited to certain types of government-related debt, such as federal student loans or tax debt. The federal government does not offer broad [debt relief programs](https://money.com/what-is-debt-relief/) for private debts such as credit cards or car loans. That doesn’t mean you’re out of options. Below, we’ll explain which government programs are available, who may qualify and other ways to get help if your debt isn’t covered. ## Types of free government debt relief programs The federal government has a hand in a surprising number of different loan types, and as a result, it often sets up pathways for borrowers to get help if they’re [struggling to repay the debt](https://money.com/options-if-you-are-struggling-with-debt/). Here are some of the different types of debt relief options: - **Business debt refinance:** If you’re struggling to repay a business debt, you may be able to refinance it into an SBA loan with a more affordable payment. - **IRS offer in compromise:** If you’re unable to pay a federal tax debt, you may be able to settle it for less by offering a payment amount you *can* afford. - **Student loan forgiveness:** Borrowers with federal student loans can qualify to have their debt forgiven through a few different routes. One route is tied to your job via programs like Teacher Loan Forgiveness and Public Service Loan Forgiveness. There is also forgiveness through income-driven repayment plans, where your remaining balance is canceled after you’ve made at least 20 years of payments. - **Mortgage debt relief:** The federal government outlines many support options for people with home loans from Fannie Mae and Freddie Mac, or mortgages backed by specific agencies, including the Department of Veterans Affairs, Federal Housing Administration and Department of Agriculture. - **Servicemembers Civil Relief Act:** Active-duty service members can benefit from special debt relief options, such as reducing rates on pre-service loans down to 6%. State governments may have additional programs you can qualify for, but they tend to focus on the same populations — homeowners, certain high-need professions and entrepreneurs, for example. Unfortunately, outside of these options, the government doesn’t offer much support if you’re trying to get out of debt, especially if you have [unsecured debts](https://money.com/secured-debt-vs-unsecured-debt/) such as credit card debt or personal loans. Most government support to individuals comes in the form of need-based grants and new low-interest loans for specific uses (like catching up on overdue home repairs or paying for higher education), rather than offering support for debt that you’ve already incurred elsewhere. ## Other ways to become debt free You’re not alone if you’re not eligible to have your loans forgiven by the government. The good news is that millions of people have gotten out of debt before, and you can, too. Here are some of the ways you can do it: - **Focus on your finances:** Regardless of how your debt accrued, if you learn how to budget, boost your income and lower your expenses, you can turbocharge your way out of debt. - **Try the** [**debt snowball or debt avalanche method**](https://money.com/debt-snowball-vs-debt-avalanche/)**:** These are methods to help you create a debt payoff plan. After you pay off a debt, rolling that payment toward your next debt — either the one with the highest interest rate or the highest balance — can help you save money and make quick progress toward debt freedom. - **Take out a debt consolidation loan:** If you’re able to manage your bills but just need a little bit of help, [combining your debts](https://money.com/pros-cons-debt-consolidation/) into a single, lower-interest rate loan can help you save money. You can opt for a longer repayment term that will lower your monthly payments to help with cash flow, or you keep paying the same amount. The latter won’t free up any money month to month, but it will save you more in the long run. - **Negotiate with creditors:** You can work directly with your creditors on a more affordable way to repay your debt or even settle it for less than you owe. - **Work with a credit counselor:** Nonprofit credit counseling agencies can help steer you in the right direction and offer affordable debt management plans, which typically feature one monthly payment and a reduced interest rate on eligible debts. But credit counseling organizations don’t negotiate debt settlement offers. - **Hire a debt relief company:** The [best debt relief companies](https://money.com/best-debt-relief-companies/) offer an affordable and transparent program focused on negotiating your debts for less than you owe. These programs typically take between two and four years to work through all your debts, though your first settlement agreement often comes within three to five months. - **File for bankruptcy:** There are significant downsides to filing for Chapter 7 or Chapter 13 bankruptcy, but it can provide significant relief from your debts under the right circumstances. ## What’s the best way to become debt free? Everyone’s path to getting out of debt will look different, and the best path for you will depend on your individual circumstances and preferences. Some general ideas apply to everyone, though. For example, you typically need to stop the bleeding; in other words, stop using credit cards and try to reduce your interest rates if possible so your debt stops growing. It’s also wise to focus on building strong financial management skills that can carry you forward past this temporary snag. If you can afford to make payments on your debt, consider a [debt consolidation loan](https://money.com/ways-to-consolidate-debt/) and/or a debt snowball or debt avalanche payoff strategy. That’s not always possible, though, particularly if you’ve already started missing payments or you don’t have a strong enough credit score to get approved for a good consolidation product. If that’s the case, [working with a credit counselor](https://money.com/how-credit-counseling-can-help-with-debt/), [debt relief company](https://money.com/how-debt-relief-companies-work/) and/or [filing for bankruptcy](https://money.com/debt-relief-vs-bankruptcy/) can help you get your financial life back on track. ## FAQs about government debt relief programs ### Is “free government debt relief” for credit card debt a scam? No such program exists, so any company claiming overwise is likely running a scam. As the Federal Trade Commission suggests, you should walk away if an organization advertises a government program that can erase credit card debt. Likewise, legitimate debt relief companies are legally prohibited from charging upfront fees. If a company asks for payment before a service is rendered, that’s a major warning sign. ### Who qualifies for government debt relief programs? Eligibility criteria vary based on the government agency running the program and target population. Generally speaking, many programs will require some proof of financial hardship. Some will require proof of employment in a certain field or residency in a specific area. ### How do I know if a government debt relief program is legitimate? Legitimate federal assistance programs are run through official government agencies or approved servicers. If you’re unsure, check for programs listed on the sponsoring agency’s .gov websites. Some non-profit organizations or companies may offer legitimate help with applying for government assistance, but promising special access to a federal program is a red flag. ### Can I get a government grant to pay off debt? There are federal grant programs to help lower-income Americans pay for specific expenses, such as heating or internet bills, but there aren’t any grants specifically for paying credit cards, personal loans or medical debt. 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