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In America “free” means free, right? Wrong. Retailers are advertising “free” smartphones when you sign-up for a two year contract. Sounds like a great deal, until you read the fine print. In an effort to make back the money they’re losing, retailers still charge consumers  a tax on their “free phone.” 

The state of Massachusetts and many others have said customers must still pay the sales tax of the original retail price of any “free” smartphone. This is an example of how retailers are really getting their money.

ABC Fox news recently reported, “A perfect example would be the Samsung Galaxy Stellar smart phone. It’s free with a 2 year service agreement. But the retail price is $350. So, you’d pay 6.25 percent of 350 dollars – or about $22.”

Granted, $22 for a $350 smartphone may still seem like a pretty good deal, though not what was originally expected. Customers may be irritated, but in the end satisfied with their money saving purchase. But there’s still another hook to set in the retailer’s game.

There is also a service charge to pay. This can run the originally “free” item up another $30 dollars. And don’t forget about a smartphone’s apps, pictures, bandwidth and accessories it needs to be anything more than a paperweight. All of these extra add-ons will cost consumers to operate and store.

Retailers are taking advantage of these sales as well. In recent years, smartphone retail prices have exploded, meaning the sales tax is higher and consumers are suckered into paying money they thought they were saving.

Though, some consumers still feel there is a deal to be had, considering in our example, a customer would still only pay $52 for a $350 smartphone with service charges. But most others are irritated with the outright lies.

Why can’t retailers tell customers the truth? Would it be so difficult to advertise a $298 savings on a $350 Samsung Galaxy Stellar smartphone with the sign up of a two year contract? This still seems like a steal in most people’s eyes.

But no. There has to be some sort of catch. Perhaps retailers find when they advertise an honest deal, people are less inclined to bite. Maybe this is why retailers find the need to pull the old ‘bait and switch’. One thing is for certain, smartphone consumers feel duped after falling for a retailer’s “free” cell phone scam.

It seems the only truly free phone is through government aid programs, like Lifeline. In order to get an honestly free phone, people have to honestly need one. The Lifeline program works to provide free cell phones and cell phone service plans to those who could otherwise not afford one.

Lifeline began in the 1980s under the Reagan administration. Back then, Lifeline only provided landlines, one per household, to eligible individuals who met a rigorous list of qualifications.

In 2005-2008 under the George W. Bush’s administration, Lifeline updated its program. The update included the wave of the future in communication technology; the cell phone. As landlines were becoming increasingly obsolete, Lifeline felt, in order for its customers to compete in society, they needed at least a basic model cell phone.

Lifeline cell phones are fundamental models without data capabilities. Far from the aforementioned Samsung Galaxy Stellar. These phones are capable of making and receiving calls, sending and receiving texts and receiving and listening to voicemail messages.

The phones generally come with 250 free voice minutes, 250 free text messages and, as mentioned, the phone itself is free of charge.

Lifeline still only provides one cell phone OR one landline per household and upholds its strict regulatory qualification standards. To become a Lifeline service receiver from a Lifeline supporting cell phone provider, individuals must meet these stringent requirements.

Qualifications vary by state of residence, but generally include current assistance from another government aid program such as, Medicaid or SNAP (food stamps). Accepted government aid programs will, again, vary by state.

If an individual does not receive assistance from a government aid program, they must have a gross income 135 percent or 150 percent (depending on state) below the national poverty line. Once one or both of these requirements has been established, the individual must then provide government documents verifying these requirements.

Accepted verification documents, also known as “proof documents”, also change by state. If an individual needs to know what their state’s qualifications are in order to receive Lifeline assistance, there are numerous sites available to learn this information, including fcc.gov or a cell phone provider which supports the Lifeline program in the state of residence.

Free phones have been the core of many morality issues in our country today. Whether or not it is fair to claim a smartphone is free with the sign up of a two year contract or if our government should fund a program used to provide low income people with free cell phones. These topics are still heavily debated today and it is important that each voice is heard on the issue.

 The Lifeline program brings wired and wireless phone service to those who live in poverty. These people are the elderly who live off of social security, the homeless, recent graduates and those who have been laid off from work.

Eligibility for the Lifeline program grant these individuals with a cell phone or landline to ensure communication with authorities, employers, family and friends. But, the Lifeline program has recently had to meticulously inspect each of their customer’s accounts due to an abundance of duplicate accounts, eligibility oversight and fraud.

Neglect of such a generous program is disheartening, especially for the people of our nation who could really use the help. Lifeline suspects they should be able to save the country more than 2 billion dollars over the next three years from the corrected negligence, reports US News.com.

The FCC has combed through 200,000 fraudulent accounts and banished them from Lifeline service.  From US News.com, “In Arizona, nearly half of 1,313 Lifeline subscribers who completed the survey were deemed ineligible for the program.”

FCC chairman Julius Genachowski states for US News.com, the new rules and restrictions in order to gain access to the Lifeline program will hopefully keep out miscreants, “to anyone contemplating gaming the system: Don’t bother, you’ll be caught and punished,”.

The Lifeline eligibility rules were already pretty strict. In order to bypass these requirements, regulators must have been outright ignoring them. In order to receive Lifeline service, applicants must already be enrolled in another government aid program like SNAP (food stamps) or Medicaid.

The applicant’s gross income must also be 135 percent (or 150 percent depending on state) below the nation’s poverty line. Verification of these requirements are also a must in the form of government issued documents.

Individual’s looking to cheat the system provided false identification or persuaded cell phone distributors to allot them more than one cell phone. Lifeline only provides one wireless or one landline per household.

These extra phones were being sold, given out to friends and generally abused; certainly not being used for their intended purpose of finding employment and staying connected with local authorities and family.

Though the FCC has set up yet another barrier of protection to ward off no-good-doers, the public should be responsible for fraud in this program as well. After all, we are paying for these free or discounted phones through our wireless providers.

The fee is called a Universal Service charge which appears monthly on most cell phone bills. The fee is from the Universal Service Fund which collects this money from cell phone service providers, the providers then collect it from their company’s customers.

To report acts of fraud against the Lifeline program or any USF government aid program, follow these tips from the Universal Service Administrative Company website or USAC.

“If you are aware of waste, fraud, or abuse of USF program funds, USAC encourages you to report it. USAC treats each report of waste, fraud, or abuse as a serious and urgent matter requiring immediate attention.” USAC.com

What should be reported

It is our country’s right to pay only what a program needs and not for oversights, negligent verification mistakes or fraud. If an individual witnesses gratuitous product distribution from a Lifeline cell phone provider, lack of verification or any other act against the Lifeline program’s restrictions or any USF program, report it immediately.

Can the report be anonymous?

Yes. As a US citizen, every individual who reports an act of fraud against a USF government program has rights to their case’s confidentiality. No action can be taken against the individual simply as a consequence of their report submission.

How does filing a report work?

Different scenarios can be expected depending on which form of communication is used to file the report.

By phone:

When dialing in a report of fraud, tell the responding operator you would like to make a “whistleblower alert” then indicate the issue has to do with USF waste, fraud or abuse. The operator will promptly connect you with the correct department to handle the incident and will file your report.

By email or mail:

Simply reference “whistleblower alert” and the name of the organization committing fraud, waste or abuse in your email or letter. The Universal Service Administrative Company will respond when they have received your complaint.

Once the file has been submitted a USAC correspondent will contact the individual who filed the report. This connection is vital in receiving as much information about the incident as possible and is greatly appreciated by the USAC.

The information provided by the individual will then be sent along with the report of fraud to the FCC or other qualifying law enforcement. “After your report is received, it will be investigated. Because the report and investigation are confidential, USAC is not at liberty to provide the status or outcome of the investigation.” USAC.com

Here are a few contact numbers to address if ever you witness fraud against the Lifeline or other USF government programs. To submit a report online go to the USAC website.

• Contributors, High Cost, Lifeline, or Rural Health Care: (888) 641-8722
• Schools and Libraries: (888) 203-8100
• FCC Lifeline Fraud Tip Line: (855) 455-8477

• US mailing address: USAC Whistleblower Alert
• 2000 L Street NW, Suite 200
• Washington, DC 20036

It has come to my attention that there is a controversy brewing in this country concerning government subsidies for the underprivileged. Perhaps that’s an understatement… If you follow the news you know that there are two very different points of view concerning the government’s role in providing assistance to its disadvantaged population. One group politely states that it is society’s responsibility to give everyone a fair chance at success and happiness. The other group gently reminds us that America was built by hard work and sweat. They say that no one deserves something for nothing. That first group argues that there are rights and privileges that everyone should have, whether they can attain them by themselves or whether they need help from the government. The second group clenches its jaw and growls that those rights and privileges should be limited to “life, liberty, and the pursuit of happiness.”

“Freedom comes with the responsibility to help your fellow Americans!” screams the first group. Their opponents howl, “You can’t force me to do anything!” And the whole thing erupts into smear campaigns during election time. Of course, most of us probably don’t fit into those two extremes. It is likely that most of us feel that there are necessities that other human beings deserve, even if they can’t afford those things themselves, so long as we don’t go overboard handing out unnecessary luxuries. For example, most reasonable people would argue that the government should provide some sort of assistance to families in danger of losing their water, electricity, or gas services. These are things that are necessary for survival or at least heath. Those same reasonable people would probably feel that if you can’t afford a car, the bus should do the job adequately. Government subsidized housing is available for families, but there are very few frills that come with the help. The general opinion is that children should be able to go to public education for free and that no one should suffer from hunger while we have grocery stores full of food. The waters become a little murkier in other areas. Should society support an adult who chooses not to work even though he or she is perfectly able? Should we be providing government grants for college education even though loans are available for the taking?

Many of those loans are government subsidized anyway! Or, should all upper education be free giving everyone an equal chance at success? What about healthcare? Disaster relief? The list goes on… One especially murky (and controversial) subsidy concerns cellular phones. The U.S. government has offered help paying phone bill charges to low income families since 1984. Although the money doesn’t technically come directly from taxes, it is collected in one form or other as extra fees from paying customers of various service providers. It is a federally mandated and regulated program and it is necessary to be below or near the poverty threshold in order to qualify. Supporters of the program argue that a phone is necessary to obtain and hold a job in today’s work environment. It is also vital to have access to a phone in case of an emergency and simply to communicate with family and friends. These advocates aren’t arguing that everyone deserves an “iphone 9” (or whatever the latest version is), but they do feel that a basic phone with a minimal amount of minutes for important use would improve the quality of life for a large segment of America’s population. Critics of the subsidy claim that a cell phone is a luxury. Anyone who has a cell phone should have worked hard enough to buy one on top of the necessities or be willing to make the sacrifices needed to pay for it alone. Personally, I struggle with the issue. For the past four years, I have worked with a non-profit group partnered with the University of Denver’s Graduate School of Social Work. My office was deep in the heart of one of Denver’s roughest housing projects. Every day I worked with students and families who could barely seem to pull enough money together to put shoes on everybody’s feet. The apartments were crumbling, food stamps barely kept food on the table, and if you couldn’t afford bus fare it was going to be a long walk in the snow. But, everyone always seemed to have the latest and greatest cell phone! Teenagers would show up at my office with a brand new phone. Parents would stand in apartment doorways and text their children to come home for dinner. Sometimes I felt that the social necessity of the phone had outgrown simple phone calls. I don’t know if this means that cell phones are a necessary part of life and should be subsidized by the government or not… but I can tell you that I have seen some of the neediest members of our society sacrifice quite a bit to have something that they think is important to their lives. It is an argument that won’t end anytime soon. The only thing that I can really guarantee is that the shouting and the smear campaigns will continue.

There are many telecommunication companies that continue to charge high land line and mobile rates.  Our United States government monitors and endorses private telecommunication company.  Moreover, companies such as Cricket and Safelink have special rates for low income families.  It is imperative that everyone residing in the United States should own a mobile phone because rarely do I see a phone booth.  Hence, in case of an emergency taking pictures or recording a video is part of our society’ activity to document an event or follow the mobility of people.

                There are requirements that telecommunication company would need from the individual in order for their phone bill to be affordable.  I have been to the Department of Economic Security agency and I have seen advertisement posters for Safelink and Cricket.  Personally, I applied for a Safelink for my grandmother who qualified for a free Safelink Wireless Phone.  There are government programs the family or individual would have been participated in to be qualified for free cell phone and reduced rates.  My grandmother is on supplemental security income, Medicaid, and supplemental nutrition assistance program food stamps that would qualify her. In addition to that eligibility, if a family is on cash assistance, federal public housing, free school lunch, and state health insurance would automatically qualify them for high free minutes and free cell phone.   Furthermore, the total household income earnings made her eligible.  There is an income minimum of $16, 3335 with one person household to maximum $56,445 with eight people household.  There is case numbers required to be included with the necessary documents to show the person or family is entitled to these reduced rates, free cell phone, and free minutes while talking during peak and non-peak time.  The U.S. government has negotiated with telecommunication corporation to not set restrictions but to demonstrate a need based on income, lack of health insurance, and a need for food. Besides free mobile phones, anyone can ask Comcast, Qwest, and other cellular phone company that have programs for low income family.  Unfortunately, without the proper documents to verify income, families are not approved for the government phone service discount. There have been too many abuse and fraud; therefore, verification is part of the requirement.  Furthermore, there are other interior motives of the government why low income families can qualify for free cell phone and minutes,  which unfortunately gives the perception that government is aiding the impoverish people.  It sounds very admiral of the government to help low income people by working with private telecommunication corporation but telephones are the main resource to track, communicate, and monitor the mobility of people for many reasons.   Lastly, we must not forget that every company has to make a profit and nothing is free in life.  FREE comes with a price and it may seem free but one is locked in to use the service despite the fact that the cheap phone was free.  Phone is free but phone corporations requires you to use all 250 minutes free or no roll over minutes as well as we need your SNAP credit card or a debit card to charge in case you go over 250 minutes. The SNAP credit card is the food stamp card. I would feel like “big brother”, which equals the government ease dropping my telephone conversation if I knew I was getting a free phone with free minutes. Nowadays, the buy one get one free is a hallucination of we are doing you a favor in giving you something free but that really is a result of paying for two items but a lower cost.  Nevertheless, government has come up with a concoction cleaver idea to provide the AZ Lifeline Phone  so people who can’t afford phones will not have a reason to accept a phone and free phone service. Of course, that goes without saying that consumers will pay one way or another despite anything offered for free.  When minutes are used up, one will have to purchase more minutes which can be expensive.

                Government phone service discount for low income families is a great program to assist people who cannot afford a phone line but there is always stipulation or the program is under scrutiny due to a flaw.  Remember those info commercials that advertise this product is free and all the consumers have to pay is shipping and handling and with a major credit card you can have this free.  When something is not affordable, and given the opportunity to attain something for free, the midsection of the brain will stimulate a yes answer to I want it. The left side of the brain called the thinking cap is thrown out the door. Therefore, don’t always think the government provides free assistance.

Congressman Tim Griffin has been at the forefront of the free phone controversy that has been whispered through our country for the past few years. His inflated “facts” have upset many Americans on both sides of the issue.

It’s hard to find the truth in much of today’s media and with the ever important topic of government money and its projected use becoming increasingly prevalent, free phones are in the spotlight all the time.

Lifeline was established in the 1980s during Ronald Reagan’s presidency. The program provided landlines to low income individuals who would otherwise not have access to a source of telecommunication.

Communication is undeniably crucial; a contact number is needed for almost anything in the modern world. Contact numbers are needed for a child’s school records, job applications, resumes, package deliveries and in case of emergency. The list of phone uses could go on forever.

During the Reagan administration, cell phones were not as popular as they are today, so the Lifeline program only supplied landlines. But during George W. Bush’s presidency in 2005, cell phones had taken over as our nation’s choice for telecommunicating.

Lifeline was expanded in 2005 to include basic model cell phones and contracted cell phone providers across the country to enable low income individuals who were eligible for the program’s services to receive a discounted cell phone and service plan.

The eligibility requirements vary by state, but generally to receive service from the Lifeline program, an individual must already receive assistance from a government aid program such as Medicaid or the food stamps program (SNAP).

Another eligibility qualification is the individual’s annual income must be 135 percent (or 150 percent depending on resident’s state) below the nation’s poverty line. Individual’s interested in Lifeline must also present government documented proof of the requirements above.

The phone plans generally include a basic model phone, 250 free voice minutes, 250 free text messages and voicemail service. Just the foundation of cell phone capabilities to help people help themselves.

People who seek assistance from the Lifeline program want to better themselves. They want to find work, pursue networking and position opportunities and reclaim the security of having a source of telecommunication if an emergency should arise.
As reported by Addicting Info.org, “In 2011 ABC News reported that, “240 million calls are made to 911 in the United States each year. According to the Federal Communications Commission, 70 percent of them are wireless calls.” ”

Tim Griffin is against the Lifeline program for reasons of recent fraud. Griffin believes these phones are being passed out by the dozen and the program is funding thousands of phones against the program’s regulations.

The FCC has admitted the program struggled with fraudulent identities, duplicate accounts and lack of verification of the individual’s circumstances, but has worked tirelessly to combat this issue.

Along with individual’s cheating the program, cell phone providers were scamming the Lifeline program as well. As reported by Addicting Info.org,

“…cell phone companies were taking advantage of the fact that the states were not paying much attention to how Lifeline funds were being distributed. Websites and other businesses advertised “free government cell phones” while charging the government for multiple cell phones attributed to social security numbers of people who may or may not be alive, let alone qualify for the Lifeline program.  In many cases, no cell phones were ever actually distributed. Recently, the Security and Exchange Commission sued the owner of Cintex Wireless, Paul V. Greene over millions of dollars in alleged abuse of the program.”

The FCC has invested months in searching and weeding out the duplicate and fraudulent accounts that have gone under the radar by the Lifeline program’s strict requirements. The FCC has also recently added another wall of security to the Lifeline program to ensure this issue doesn’t happen again.

As reported by Addicting Info.org, “In January 2012 the FCC created a National Lifeline Accountability Database to prevent multiple carriers from receiving support for the same subscriber as well as other systems of fraud prevention.”

Although the necessary improvements have been made, Griffin is not appeased. He has recently sent a bill to the White House to end Lifeline’s right to supply cell phones and instead, resort back to only providing landlines.

As reported by Griffin.House.gov, Griffin stated, “My bill returns the Lifeline program back to its original structure by ending federal subsidies for free cell phone services.  This growing government cell phone program is costing American consumers and taxpayers, and my bill puts an end to it.”

As a country struggling through a 5 year recession, the fees that go into our government programs are important. We need to know what our money is going towards and that it is not being wasted.

The Lifeline program will hopefully uphold the diligent task of keeping duplicate accounts out of the service. Their recent actions against fraud have been promising. This service ultimately is extremely beneficial to those low income Americans who want out of their rut.

Helping those to help themselves is what our country is all about. Is handicapping honestly beneficial programs like Lifeline really the answer to cutting back our government spending? Griffin believes it is, but the jury is still out on if this risky potential move will ultimately be as successful for our low income population.

The United States government has a program that offers a free cell phone to people who meet certain simple, basic requirements. The free cell phone program includes a limited usage plan of up to 250 minutes. There are specific limits to income. Let’s look at just a short example of one of the ways to get a free cell phone from the state.  Here you can review all that you need to do to enroll. The site will contain information that is specific to your state. The Lifeline program also subsidizes land line phones. Other sites to consult are SafeLink Wireless or AssuranceWireless. The SafeLink Wireless program is government sponsored. Though it is not available in all 50 states, it is anticipated to be only a matter of a short while before the entire country is covered. An eHow Contributor acknowledges, “With popularity of cell phones, the service is being updated to partner with various carriers and provide cellular service.”

SafeLink is not available in all areas that provide the free government cell phone service. So check first. At latest search, SafeLink is available in 33 states. A quick call to 1-800-SAFELINK will verify or you can try SafeLinkWireless.com. If service from this company is not in your area, you can probably find out when it will be. Once you verify what service vendor is in your state, study the guidelines to see if you do qualify or not. There are a number of government sponsored help programs that will qualify you if you are already enrolled. These programs range from food assistance to housing help. Food Stamps, Medicaid, Section 8, Supplementary Security Income, National School Lunch and Energy Assistance programs are just a few. Your income level is the strongest qualifier for program acceptance in your state. All states do not have the same application method or application process. You may apply online. Other verifying information, such as income verification has to be sent in by mail.

Many of us know someone who does not have a cell phone and is thereby at a real disadvantage in their everyday lives as a result. A cell phone is absolutely necessary in today’s world, especially since you see very few public phones anymore. Cell phones are most important because you can be reached wherever you are in most cases. With a land line you can only be reached at a specific location – usually at home. So, if an emergency occurs at school, you don’t have to wait until you get home to get the message that you were needed at the school because your child took sick during the morning homeroom at 8:45am. If you are not at a place of employment, you will not get the message in a timely or meaningful manner. Many employers prefer to make a phone call to a candidate for an interview appointment than send an e-mail. Easy access may make the difference. And last, but not least, you can dial 911 from wherever you are in an emergency. According to the copyright 2012 phone-bill-assistance.com source, “If a consumer needs assistance with telephone service, the consumer applies for the program through his or her local telephone company. If the phone company is eligible, it asks the Universal Service Fund’s Low Income Program for reimbursement for the difference of the normal charge for service and the discounted rate offered to the consumer. For each family that applies for the Lifeline or Link Up program, the telecommunications carrier must provide the Universal Service Fund’s Low Income Program with Form 497. The carrier must file the form monthly or quarterly. Depending on the time of the year, some carriers may submit the form for up to 25 months.”

With 250 minutes being a little over 4 hours, that time can go by before you know it. There is a certain discipline that the consumer has to have while using the government sponsored free cell phone. This service is really designed for emergencies or so that you can be available for calls that may only come once, like a job interview. It is not a program that allows you to use the phone time for social calls. You cannot be long-winded nor can you afford to be put on hold for long periods of time. This service is strictly in-and-out, on-and-off. So, let us say that, for whatever reason, you have run through your 250 minutes on the 15th of the month. Different cell phone provider plans may each have their own procedures with help offers, but, just as an example, let’s look at the Assurance Wireless customer service policy in this regard. Fortunately, the customer has a few options to choose from. FreeGovernmentCellPhone.net should be the first place to start as a guide for access to more minutes when you run out of time.

• #1 – Once you have gone through your 250 minutes you cannot get any incoming calls, but you can make calls to 911 and Assurance Wireless customer service. However, if you have a cash reserve in your cell phone account, you can get continued service, but at the rate of 10 cents per additional minute after the first 250 minutes.
• #2 – You can also upgrade your Assurance Wireless plan to the extra minutes plan. The consumer has two options here – a $5 Talk Offer or a $20 Talk & Text Offer. Either one of these options allows you the ability to significantly increase your monthly air time – tight budget or not. If you chose the $5 Talk Offer you will get a total of 500 voice minutes – again, for just an additional $5 per month. But if you chose the $20 Talk & Text Offer, you will get a total of 1,000 voice minutes and 1,000 domestic messages. Important to keep in mind is that you don’t get any rollover minutes.

The Lifeline Assistance program can be very counter intuitive and since it’s a government program, there can be a lot of hoops to jump through.  To complicate matters further, dozens of companies take part in the Lifeline Assistance program.  So, aspects of the program can even vary from company to company. The program itself, the various plans and the phones can be confusing to a new applicant.   Below, we answer some of the most common questions we receive on the Lifeline Assistance program.

We cover the following questions below:

• Who Pays for These Phones? Is it Really Free?
• Is This the “Obama Phone?”
• What Do I Need to Qualify?
• What Documents Do I Need to Bring?
• What Counts as “Income?”
• Is There a Long Term Contract?
• What Happens if I Want to Cancel?
• What Happens if I Lose or Break My Phone?
• Can I Get a Phone for Someone Else in My Household?

Question: Who Pays for These Phones? Is it Really Free?

Yes, the phones are actually, genuinely 100% free.

The phones are paid for by everyone in the United States who has a phone. It’s called the Universal Service Fund. Everyone pays a few bucks into this fund. The money from the fund then goes towards paying for phone service for low income individual who can’t afford normal cell phone plans.

Question: Is This the “Obama Phone?”

Yes and no. The program is called the “Obama Phone” because the plan truly kicked into action when Obama stepped into office. Yet Obama actually had very little to do with the program.

The program was first authorized by the Federal Communications Commission (FCC) in 1996. When it was first authorized, the program applied only to landline phones. The FCC created a plan that let low income households get free landline phones.

In 2008, when Obama took office, the first application for mobile phone use of the same plan was approved. Obama didn’t have much to do with it. The dates were more or less a coincidence; though many people started associating the program with Obama.

Question: What Do I Need to Qualify?

You need to fall under the program’s earnings requirements. You’ll qualify if you earn less than 135% to 150% of the federal poverty guideline for your state. You can also qualify based on qualifying for another government assistance program, such as food stamps, public housing or Medicaid.

Question: What Documents Do I Need to Bring?

The more documentation you can bring the better. You’ll need at least one document proving your income to be eligible if you’re trying to qualify based on income. Here are some of the documents you should bring, if available:

• Paycheck or pay stub. Recent months preferred.
• Tax returns. If you don’t have a copy of your tax return, you can request another copy from the IRS.
• Unemployment statement. If you’re on unemployment, bring in your statement of benefits it prove that you’re not employed.
• Proof of other income. For example, bring a copy of your pension statement of benefits if you’re on a pension plan.
• If you qualify under any special program, bring proof of that program. For example, bring your Medicaid care plan and your Medicaid card to prove your Medicaid eligibility.

All the information you provide must be provided under penalty of perjury. That means deception on any of these forms could have serious consequences, including jail time.

Question: What Counts as “Income?”

Naturally, your paycheck counts as income. Yet a lot of people wonder – do things like unemployment, pensions or workers comp count as income?

When it comes to qualifying for the program, the answer is yes. Social security, child support, interest from investments and paychecks are all lumped into one category. Your total income from all your income combined has to be less than the 135% to 150% of the federal poverty guidelines.

If you’re qualifying using another government program, you may be asked to use your adjusted gross income (AGI) instead. Your adjusted gross income is your total pretax income, minus some specific expenses. These expenses include alimony payments, half of self-employment tax, contributions to IRAs, college tuition and student loan fees among others. Essentially the government gives you a small “credit” for certain expenses.

Question: Is There a Long Term Contract?

No, there is no long term contract. You receive your phone on a “use as you will” basis. If you want to cancel your plan, you can do so at any time with no consequences.

You do have to re-qualify for your plan once a year. All you need to do is fill out a few simple forms that demonstrate that you still fall under a qualifying category. Apart from that, there are no other annual requirements to participate in the program.

Question: What Happens if I Want to Cancel?

If you want to cancel your account, all you need to do is call them and let them know.

If you’re canceling because you no longer qualify for the program, you can actually switch to a paid account. That will let you keep your phone number and all you contacts and use your phone like a normal phone plan.

No matter what the reason you decide to cancel, there will never be any penalty fees. You’ll get to keep your phone. If you change to another phone provider, you may still be able to use the same phone provided the phone is unlocked.

Question: Do I Need to Be an American Citizen to Use the Program?

No, you don’t. The form doesn’t have a citizenship requirement. The eligibility form doesn’t ask for a social security number.

You just need to be able to show documentation that you qualify. If you’re an immigrant with a job, you can use your pay stub as income verification to qualify. If you’re on another government program, like Section 8 or food stamps, you can use that to qualify. As long as you bring verification in, nobody’s going to check if you’re a citizen.

Note: technically the program is only valid for US citizens. However, getting qualified for the program without US citizenship is not difficult. Social security numbers are not checked.

Question: What if I Get Declined for the Program?

Try again at another location. The Lifeline program is not difficult to qualify for. In fact, reporters who don’t actually qualify for the program have had no trouble finding store locations who were willing to give them phones anyway. If you get turned down at one location, try again at another location.

If they never ran your verifications through any kind of system, you can literally just go to a different store on the same day. If they ran your name through a system and it came up declined, then wait 30 to 60 days before trying again with the same carrier. You can try again with a different carrier on the same day.

Outdoor sellers and “booth” vendors may be more likely to approve you than a cell phone store. Look for Lifeline phone vendors outside of food stamp or government assistance offices. These employees are paid to give away a free product, so they’ll be more than happy to help you get approved.

Question: Do I Get a Voicemail?

It depends on your carrier. Most carriers and most phones carry basic phone features like Caller ID and voicemail. Sometimes it’s the phone’s limitation, rather than the carrier’s limitation that doesn’t allow certain features (like call waiting.)

Question: What Happens if I Go Over My Minutes?

If you go over your minutes, your phone will stop working until the next month.  You can always add more minutes by buying an Airtime Card online, or by visiting a participating retailer that sells refill cards.

Question: Is Text Messaging Included?

The answer to this question varies from carrier to carrier.  So, you will need to check with your carrier.  In some cases, your free cell phone program covers text messages.

Question: What Happens if I Lose or Break My Phone?

If you lose your phone, you may be qualified to receive a replacement. Safelink Wireless offers one replacement phone for each customer. The phone will be a used phone instead of a new phone. Most other carriers won’t give free replacement phones.

Generally speaking, if you lose your phone you’ll lose all the minutes that was on the phone. If you have a credit card linked to that phone, make sure to call and cancel the phone immediately so you don’t incur any charges from anyone else using your phone.

If the phone dropped in water, try soaking the phone in dry rice for a day. The rice will draw the water out of the device and often return it to working condition.

If you can’t get a replacement phone, you can often purchase one from Amazon.com for $20. Walmart and Target will also sell replacement phones for under $20 dollars.

Question: Can I Get a Phone for Someone Else in My Household?

Unfortunately not. The Lifeline program has a strict one phone per household rule. This can cause some complications.

For example, you won’t be able to get a phone for your son or daughter. If you live in a nursing home with 50 other patients, you won’t be able to get a phone if another patient who has a Lifeline phone shares the same address as you.

The Lifeline program is designed to help the head of a household lift themselves out of poverty. It’s meant to help people find work, manage kids or handle essential daily tasks. Lawmakers deemed that only one phone per household was necessary to do this.

Note that both landline phones and mobile phones fall under the same program. You can’t have one free landline phone and one free mobile phone.

These are some of the most common questions we encounter about the Lifeline program. If you have more questions, email us and we’ll add it to the list.

According to the Lifeline Assistance guidelines, you have to re-certify that you still fall under the program’s qualifying guidelines once each year. Unfortunately, a lot of people forget about their re-certification date. What happens if you forget to re-certify? It depends.

You’re Off the Program

If you don’t get re-certified, you’ll definitely be out of the program. However, what happens after that depends a lot on the plan that you’re on.

If you’re on a cell phone, with no credit card on file and no contract, then chances are your phone number will just be canceled. You’ll receive a text telling you that your plan has been discontinued. You won’t be able to make or receive calls, or use text messaging.

That’s not all there is to it.

If You Have a Phone Bill …

If your Lifeline program is attached to a bill, then it’s a different story. For example, let’s say you’re just using Lifeline to save $9.95 on your phone bill. Perhaps you have internet or cable TV attached to the same bill. Now, let’s say you forget to re-certify your Lifeline phone. What happens?

Most likely your phone will not get canceled. Instead, the phone you’re using will be added to your phone bill. You’ll have to start paying cash for your phone instead. If you want to cancel, you need to actually call your phone company to let them know you no longer want service.

Note that some phone companies can actually charge you late fees for not canceling your phone. This will also be added to your phone bill.

Again, if you don’t have a phone bill, this isn’t something you need to worry about. However, if your Lifeline Assistance program is attached to any other bill, you need to make sure you don’t get billed for not re-certifying.

Make Sure to Read Any Cellphone Related Mail

If the FCC changes any of their policies around the Lifeline program, they’ll send you a letter in the mail. Make sure you open these letters so you know about these changes. A lot of subscribers fell off the program when the FCC made changes to the requirements, because they threw away the notification. They either thought it was spam or just didn’t read it.

Can This Affect Your Credit Score?

It depends. If you don’t have a phone bill, then no. Getting your Lifeline phone canceled will not affect your credit. However, if the plan turns into a monthly bill and you don’t pay that bill, it can affect your credit.

To Wrap Up …

In short, if you want to keep your phone service, make sure you know exactly when your recertification deadline is. Get it done at least a week or two before that deadline.

If you don’t plan on keeping your phone service, it’s better to call and cancel than it is to just wait for the certification to expire. The number to cancel your phone service should be pre-programmed into your phone.

Three democratic members of the House Energy and Commerce Committee recently called for an oversight hearing of the Federal Communications Commission’s Lifeline Assistance program over growing concerns of the rampant fraud and abused, which has plagued the program in recent years.

The Lifeline Assistance program was enacted in 1985 under the Regan administration with the goal of increasing access to vital telecommunication services to the nation’s poor.  The program initially provided a subsidy for landline telephone service.  Funds for this subsidy are collected from telecommunication companies who typically pass this cost on to their customers in the form of Universal Service Fees on their monthly bills.  The Lifeline Assistance program pays for telephone service, but not the phones themselves.

Since 1985, the Lifeline Assistance program has enabled millions of needy Americans to stay connected with employers, family, and in emergency situations.

In 2005, under the Bush administration, the Federal Communications Commission expanded the Lifeline Assistance program to cover wireless phone service.  Since 2005, the cost for the program exploded.  Many critics of the program believe that expanding the program to include wireless phones increased the risk of fraud, waste, and abuse in the program.

To address Lifeline Assistance fraud, the FCC reformed the Lifeline Assistance program, increasing eligibility requirements, and slowing growth in the program.  The FCC claims that these reforms have already saved tax payers over 200 million dollars.

FCC Chairman Julius Genachowski has called the Lifeline Assistance program “vital,” but when speaking about it, he usually emphasizes his efforts to rein in its costs.

He has acknowledged that Lifeline has “created perverse incentives for some carriers” and “invited fraud and abuse.”  Today, the program costs American tax payers close to two billion dollars annually.

The FCC has also targeted Lifeline Assistance cell phone providers who are believed to have abused the program.  Two Oklahoma state wireless service providers have agreed to repay more than one million dollars to the FCC to end an FCC investigation into Lifeline Assistance program abuse by the carriers.

Despite the FCC’s reforms and their crackdown on Lifeline Assistance fraud, Henry Waxman (D-Calif.), Anna Eshoo (Calif.), and Diana DeGette (D-Colo.) have requested a hearing to examine the Lifeline Assistance program, its cost, and continuing allegations of abuse and fraud.  The do not dispute the value of the Lifeline Assistance program, but they are critical of its growing costs.

While the Lifeline Assistance program may have its detractors, many supporters are coming to its defense arguign that the program is vital to ensure impoverished Americans can stay in contact with loved ones, potential employers, and for dialing 911 in case of emergencies.

Mignon Clyburn, a Democratic member of the Federal Communications Commission said “without this program, 15 million low-income families would literally be choosing between feeding their children or going without a dial tone that potentially could save their lives and put them on a better economic path” in a speech in March.

Clyburn argued that Lifeline is a bargain compared to other social service programs, such as Medicaid and food stamps.

“Spending $2 billion a year to connect 50 percent of qualifying families is worth it,” Clyburn said. “Without access to 911, these families would be especially at risk, as the number of communications alternatives has decreased significantly, reinforced by the fact that fewer than 500,000 payphones remain in the United States.”

What are your thoughts on the Lifeline Assistance program?  Please share them in our comments section below.