Quick answer
Real free government debt relief programs cover three kinds of debt. Federal student loans: income-driven repayment, including the new Repayment Assistance Plan (RAP) that opened July 1, 2026; Public Service Loan Forgiveness after 120 qualifying payments; and discharges for total and permanent disability, closed schools, and borrower defense. The SAVE plan has ended. Federal taxes: IRS payment plans, offers in compromise, “currently not collectible” status, and first-time penalty relief. Medical bills: hospital financial assistance (charity care) and Medicaid that can cover recent bills. For credit cards and other debt, the government offers no payoff program; free help comes from nonprofit credit counseling. Applying through StudentAid.gov or IRS.gov is free.
Key facts
- Student loans: RAP opened July 1, 2026; SAVE ended; PSLF still forgives after 120 qualifying payments.
- Taxes: IRS online payment plans are available for many people who owe $50,000 or less.
- Medical: nonprofit hospitals must offer financial assistance policies.
- Credit cards: no government payoff program exists.
- Free means free: StudentAid.gov, IRS.gov, and nonprofit counselors never charge to enroll you.
Table of contents
- Free government debt relief programs that are real
- Student loan relief available in 2026
- How IRS tax debt relief works
- Is there government help with medical debt?
- Credit cards and personal loans
- Spotting fake government debt relief
- Which debts should I pay first?
- Where to get free, trustworthy help
- Key terms explained
- Your step-by-step plan for this week
- Related guides
- Frequently asked questions
Free government debt relief programs that are real
| Debt | Real government relief | Where to apply |
|---|---|---|
| Federal student loans | RAP and other income-driven plans, PSLF, disability and other discharges | StudentAid.gov |
| Federal taxes | Payment plans, offer in compromise, not-collectible status, penalty relief | IRS.gov |
| Medical bills | Hospital financial assistance, Medicaid retroactive coverage | Hospital billing office, state Medicaid |
| Mortgage | Servicer loss mitigation, free HUD-approved counseling | Servicer, HUD counselor |
| Credit cards, personal loans | None from the government | Nonprofit credit counseling |
Student loan relief available in 2026
- Repayment Assistance Plan (RAP): opened July 1, 2026. Payments are based on adjusted gross income, from a $10 minimum up to 10% of income, reduced by $50 a month for each dependent.
- SAVE has ended: borrowers who were on SAVE must choose another plan; if you do not, you may be placed in a standard plan.
- Older plans: borrowers with loans made before July 1, 2026 generally have until July 1, 2028 to move to RAP, the new tiered standard plan, or Income-Based Repayment.
- Public Service Loan Forgiveness: forgives the remaining balance after 120 qualifying payments while working full time for government or an eligible nonprofit. PSLF forgiveness is not taxed.
- Discharges: total and permanent disability, closed school, and borrower defense discharges are available if you qualify.
Use the loan simulator at StudentAid.gov and talk to your servicer. Forgiveness under income-driven plans after 2025 may count as federal taxable income, so ask a tax preparer if you are close to forgiveness.
How IRS tax debt relief works
- Payment plans: short-term plans give up to 180 days to pay; long-term installment agreements can be set up online for many individuals who owe $50,000 or less in combined tax, penalties, and interest. See IRS payment plans.
- Offer in compromise: settles tax debt for less than the full amount when paying in full would cause hardship. Use the IRS pre-qualifier tool first.
- Currently not collectible: the IRS can pause collection if paying would leave you unable to meet basic living expenses.
- First-time penalty abatement: can remove some penalties if you have a clean history.
- Free help: Low Income Taxpayer Clinics and the Taxpayer Advocate Service help at no or low cost.
Is there government help with medical debt?
Nonprofit hospitals must have written financial assistance policies and limit charges for people who qualify; ask for the application, even after a bill goes to collections. Medicaid can often cover bills from up to three months before the month you apply. The three national credit bureaus no longer report paid medical collections or medical collections under $500. See our medical bill debt relief guide.
Credit cards and personal loans
The government has no program to pay these off. Real, free or low-cost options are: calling your card issuer about a hardship program, a debt management plan through a nonprofit credit counseling agency (often lower interest rates and one payment), and, as a last resort, bankruptcy with free or low-cost legal help. Compare options in our grants to help get out of debt guide.
Spotting fake government debt relief
Watch out: the FTC warns that debt relief companies cannot charge you before they actually settle or reduce a debt. Anyone claiming to be a “federal debt relief program” for credit cards, charging up-front fees for student loan forgiveness, or asking for your FSA ID is not the government. Student loan help from StudentAid.gov is free.
Which debts should I pay first?
- Housing and utilities: rent or mortgage, heat, and power keep you safe.
- Car payment and insurance, if you need the car to work.
- Child support and taxes: these can lead to serious penalties.
- Federal student loans: enroll in an affordable plan rather than skip payments.
- Credit cards and medical bills: important, but they cannot take your home without a court judgment.
The Consumer Financial Protection Bureau has free tools to build a budget and plan payments.
Where to get free, trustworthy help
| Who | How to reach them | Ask for |
|---|---|---|
| Student loans | StudentAid.gov or your servicer | Plan comparison, PSLF, discharge |
| Tax debt | IRS.gov or 800-829-1040 | Payment plan, offer in compromise |
| Tax problems | Taxpayer Advocate Service, 877-777-4778 | Help when the IRS process is stuck |
| Credit cards | A nonprofit credit counseling agency | Free budget review |
| Lawsuits | Legal aid at LawHelp.org | Free defense help |
Key terms explained
- Income-driven repayment
- A student loan plan where the payment is based on income and family size.
- Offer in compromise
- An IRS agreement to settle tax debt for less than the full amount.
- Debt management plan
- A nonprofit plan that combines card payments, often at lower interest.
Your step-by-step plan for this week
- List every debt with its balance, rate, and payment.
- Student loans: log in to StudentAid.gov and compare RAP, IBR, and PSLF.
- Taxes: set up an IRS payment plan or check the offer in compromise pre-qualifier.
- Medical bills: ask each hospital for financial assistance.
- Cards and loans: call a nonprofit credit counselor for a free review.
Help is free. StudentAid.gov, IRS.gov, hospital financial assistance, and nonprofit counseling reviews never charge up front.
For more specifics, see our guides on government grants for debt relief and debt management plans.
Related guides
Frequently asked questions
Are free government debt relief programs real?
Yes, for federal student loans, federal taxes, and some medical bills. Free government debt relief programs do not exist for credit cards or personal loans.
What happened to the SAVE plan?
SAVE has ended. Borrowers must choose another plan, such as the Repayment Assistance Plan that opened July 1, 2026, or Income-Based Repayment.
Can the IRS reduce what I owe?
Through an offer in compromise, the IRS can settle for less when paying in full would cause hardship. It can also set up payment plans or pause collection.
Is there a government program to pay off credit cards?
No. Nonprofit credit counseling, issuer hardship programs, and bankruptcy are the real options.
Is student loan forgiveness taxable in 2026?
PSLF forgiveness is not taxable. Forgiveness under income-driven plans after 2025 may be taxable for federal purposes, so check with a tax preparer.
Sources
Facts on this page were checked against these sources on October 25, 2026. If a source and this page ever disagree, follow the source.
This guide is general information, not legal, tax, or financial advice. Student loan rules changed in 2026; confirm with StudentAid.gov. National Relief Program is an independent website, not a government agency or lender.
Before you apply: program rules, amounts, and deadlines change. Always confirm details with the official agency or program administrator. Applying for government benefits is free.
National Relief Program is an independent guide, not a government agency. Spotted an error? Email support@nationalreliefprogram.org.
