Can I Really Get a Loan from Social Security with No Interest for One Year?

Jul 3 2016 - 1:00pm

That's just the beginning. Did you know there's also a weird little loophole that lets you get a one-year, interest-free loan from the Social Security Administration?

The above statement came from another website called Motley Fool. Is it really true. I am moving to central california in a month and need a loan to even move up there but my loan comes with an interest rate of 11.90% which will keep me broke for the rest of my life even with HUD housing. Can I really get a loan from social security with no interest for one year?

Thank you.
Sharon

Sharon,
This is not quite what Motley Fool makes it look like.
They are referring to the ability to withdraw your Social Security application within 12 months of your initial filing, to payback all benefits that you have received, and to get a "do-over" on your Social Security filing. So, you could start receiving monthly Social Security benefits and after receiving 12 checks in a year you could pay back all 12 months’ worth of benefits and it would be as if you had never filed for Social Security benefits. You would never get a lump sum amount like a real loan and you'd have to pay back all your benefits within 12 months or you'd be locked into you initial Social Security filing strategy. It's also, not like having an interest free loan for a year and paying interest thereafter.
Best,
Mike