Financial Assistance Options for Those Living With Disabilities

Millions of adults live with a disability, and the financial demands and access to medical care their condition requires can create an additional burden. When times are tough, Americans living with disabilities have a special set of resources available to them, including financial assistance that can help with daily living.

These programs enable

people with disabilities

to cover food and housing expenses, pay for health care and prescriptions, and even assist with tax filing. Veterans with disabilities may qualify for special benefits through the Department of Veterans Affairs (VA). Find out more about the financial assistance options available and learn how you may take advantage of them.

Income, Loans, and Daily Expenses

Supplemental Nutrition Assistance Program

People with disabilities may be eligible to get assistance with food under the Supplemental Nutrition Assistance Program (SNAP). The program lays out several ways to qualify, including receiving disability or blindness payments from federal or state agencies. Disabled railroad workers, veterans, and disabled spouses or children of veterans may qualify for food assistance.

Each state has its own application process, so you’ll need to

contact your state agency

to learn the rules and apply.

Social Security Disability Income

Social Security Disability Income

(SSDI) is a federal program that provides cash to meet basic needs (food, clothing, shelter) for certain populations, including disabled people. If you have a condition on the SSDI

Compassionate Allowances list

, there may be a reduced wait time for determining your eligibility.

Your monthly SSDI payment is based on your lifetime average earnings covered by Social Security. You can check the Social Security Administration’s

online benefits calculator

to estimate the amount you might qualify for, or you can create an online Social Security account to

get your Social Security statement

.

You can

check the eligibility requirements

for Supplemental Security Income (SSI) before you start your application and then

apply online

, or call 800-772-1213 or 800-325-0778 (TTY) to make an appointment. 1

Federal Disability Retirement Benefits

Federal employees who finished at least 18 months of federal civilian service may be eligible for disability retirement through the Federal Employee Retirement System (FERS). To qualify, you have to meet six requirements, including:

• The disability occurred while you were employed in a job that paid into the retirement system.
• The disability is expected to last at least a year.
• Your agency can’t provide a job that accommodates your disability.

You’ll have to provide complete documentation of your medical condition, and your agency will have to exhaust all reasonable attempts to retain you in a productive capacity.

To apply, you’ll need to complete FERS forms

SF 3107

and

SF 3112

. If you’re under age 62, you must also provide documentation that you have applied for Social Security disability benefits. 2

Work Incentives

People with disabilities receiving Social Security or SSI may be able to work and still receive monthly payments and Medicare or Medicaid. These “work incentives” allow you to transition to employment while keeping some or all of your benefits.

SSDI recipients can take advantage of a nine-month “trial work period” to test their ability to work before losing benefits. You can have your benefits reinstated if they were previously paused but you are no longer able to work because of your medical condition.

Temporary Assistance for Needy Families

Through the Temporary Assistance for Needy Families (TANF) program, states can provide families with financial help for child care, job preparation, and work assistance. Because the program is managed by each state, you must be a resident of the state where you apply. While disability is not part of the eligibility criteria, you must be unemployed or underemployed and have low or very low income.

Contact your

local social services agency

or human resources department to learn more about eligibility criteria or to apply.

Volunteer Income Tax Assistance

People with disabilities can receive free tax prep from IRS-certified volunteers through the Volunteer Income Tax Assistance (VITA) program. You don’t have to apply to use the service. You can locate a VITA program provider near you using the

IRS’ online search tool

.

Phone or Internet Service

You may be eligible for a $9.25 discount on your phone or internet service through the federal Lifeline program. 4 To qualify, either your income must fall below 135% of the federal poverty guidelines or you must participate in a qualifying program, including:

• SNAP
• Medicaid
• SSI
• Federal Public Housing Assistance (FPHA) 5

Health Care

Medicaid

Medicaid provides free or low-cost medical benefits to people with disabilities. There are two ways to apply for Medicaid:

Contact

your state Medicaid agency, or fill out an

application

through the health insurance marketplace. 6 You must be a resident of the state where you apply.

Children’s Health Insurance Program

If your income is too high for Medicaid, your child may still qualify for the Children’s Health Insurance Program (CHIP). The program covers medical and dental care for children and teens up to age 18.

There are two ways to apply for CHIP. You can

contact

your state Medicaid agency for eligibility requirements, or you can apply through the health insurance marketplace

online

or by calling 1-800-318-2596. 7

Medicare

You automatically get

Medicare Part A

(hospital coverage) and Part B (medical coverage) after you get disability benefits from Social Security for 24 months or certain disability benefits from the Railroad Retirement Board for 24 months.

Housing

People with disabilities are eligible for all public housing programs, rental assistance or subsidized housing, and Section 8 vouchers. In addition, those with disabilities may be eligible for a Non-Elderly Disabled (NED) voucher, which helps disabled people who are not seniors access affordable housing in a development set aside for seniors.

If you’d like assistance purchasing a home, the Housing Choice Voucher program can provide monthly financial assistance for homeownership expenses. There may be specific income requirements to qualify, including completing a housing counseling program.

Contact your local

public housing agency

to learn more about how you can qualify for any of the benefits mentioned above.

Student Loan Forgiveness

Total and Permanent Disability Discharge

You may be able to have your

federal student loans and grant service discharged

if you can provide documentation showing you are totally and permanently disabled. Loans that are eligible for discharge include:

• Direct loan
• Federal Family Education Loan (FFEL)
• Perkins loan
• TEACH Grant service

To qualify, you’ll need to provide documentation from the VA, Social Security Administration (SSA), or a physician. You can learn more about the process and get an application at the U.S. Department of Education’s

Total and Permanent Disability (TPD) Discharge website

.

Benefits for Veterans Living With Disabilities

Veterans who were honorably discharged and have a service-connected disability may be eligible for special veterans’ options.

Career Counseling

The Veteran Readiness and Employment program helps veterans with career counseling. If you qualify, you may be eligible to receive several services, including job training, résumé development, on-the-job training, postsecondary training, and special employer incentives. The program also provides independent-living services for veterans who have a service-connected disability that limits their ability to work.

Disability Compensation

Veterans who have a disability that occurred during their service, was worsened or aggravated by their service, or is presumed by the VA to be related to military service may be eligible for disability compensation. Disability compensation, which is a

tax-free benefit

, is available to you if you were honorably discharged.

Home Loans

Veterans, regardless of disability status, may be eligible for the

VA’s home loan program

to purchase a home, manufactured home, lot for a manufactured home, or a condo. You can also use a VA loan to build, repair, or improve a home. VA loans have favorable terms, which often include no down payment or mortgage insurance premiums.

Health Care

You may be eligible for health care benefits through the VA if you served in the active military and received an honorable discharge. Higher priority is given to those with service-connected disabilities or who were discharged for a disability resulting from something that happened in the line of duty.

Business Loans

The Small Business Administration (SBA) offers loans to any business owners that qualify. If you’re a disabled veteran and a business owner, you can work with the Office of Veterans Business Development to apply for SBA loans.

SBA Microloan

SBA microloans provide loans up to $50,000 and may be ideal for working capital, inventory, supplies, furniture, or equipment for your business. Interest rates are generally between 8% and 13%, and the maximum repayment term is six years. Contact your

local SBA office

to locate a microloan lender near you. 9

SBA 7(a) Loan

For larger funding needs, an SBA 7(a) loan may be more ideal. Loan amounts are up to $5 million and provide business owners with funds for working capital, purchase of equipment or machinery, capital for real estate purchases, purchase of a new business, or refinance of certain business debts. The SBA’s 7(a) loan checklist can help you determine whether you qualify and help you prepare for the application. 10

Frequently Asked Questions (FAQs)