Lawrence...I am on Social Security Income...I just learned I can apply for a
$1,000 interest free loan. Can I obtain an application from you? If not, where can I call to obtain one.
My local social security office in Jamesville, Wi. had no information.

I would appreciate a phone call or e-mail with the appropriate
application form.

I look forward to hearing from you ar your earliest convenience.

Thank You, Judith

Hi Judith,

I'm not sure what you're referring to, but some internet sites talk about interest free loans in reference to applying for Social Security benefits, drawing benefits for a period of time, and then withdrawing the application. If a person does this they must refund any benefits that they receive, but they aren't required to pay interest on the funds. They can then potentially file a new application to start their benefits later without being directly penalized for having drawn benefits previously.

It's obviously misleading to refer to the above strategy as an interest free loan, and we don't recommend using this practice. A person seeking to withdraw their application must pay back all benefits received in a lump sum, so the funds can't be repaid in installments like a traditional loan. Furthermore, Social Security now allows withdrawals of Social Security retirement claims only when a person has been drawing benefits for 12 months or less, and withdrawals are limited to one per lifetime (https://www.ssa.gov/planners/retire/withdrawal.html).

Best, Jerry