How Do Substance Abuse Treatment Center Loans Work?

Medically Reviewed by Johnelle Smith, M.D. on

People experiencing substance abuse and the need for addiction treatment are faced with the task of how to pay for it. Alcohol and drug rehab healthcare can be expensive, and not everyone has health insurance, so some people may require substance abuse treatment loans.

How Do Substance Abuse Treatment Center Loans Work?

People seeking detox services and behavioral health programs for substance use disorders are making the right decision for their physical and mental health.

However, the cost of treatment for alcohol and drug addiction can be high, and insurance coverage can sometimes fail to address all of your financial needs.

In addition to the low-cost and free addiction treatment options available, people also have the option to apply for substance abuse treatment center loans.

How Do Substance Abuse Treatment Center Loans Work?

If more traditional funding opportunities like health insurance or government grants don’t work out, you may want to consider taking out a loan to pay for addiction treatment.

Substance abuse treatment loans could be considered:

  • loans from institutions that specialize in addiction treatment loans
  • financing options from substance abuse treatment facilities

Addiction Treatment Loans From A Specialized Lender

There are companies that specialize in providing loans to people who are facing drug and alcohol abuse and require treatment.

Different companies will have different terms and procedures, but some can qualify you for a loan quickly and wire the money to your account so that you are responsible for paying the treatment center.

They will also tend to have competitive interest rates.

Here is a breakdown of typical interest rates from possible funding sources:

  • substance abuse treatment-specific loans can be between 6% and 7%
  • personal bank loans can be between 11% and 12%
  • credit card interest rates can be as high as over 24%

You can use a loan to pay for substance abuse treatment entirely, depending on what you are approved for, or for your insurance deductible or other out-of-pocket expenses.

You will need to pay back the loan under the terms that the lender stipulates, so be sure to look into how flexible lenders are regarding establishing payments.

How Do I Get An Addiction Treatment Loan?

There are generally two ways that you can get a substance abuse treatment loan. Obtaining a loan directly through a lender enables you to avoid any extra fees.

Some addiction treatment programs will work with a lender for you. This may be helpful if you are overwhelmed by the process, but lenders may charge additional fees to rehab programs, which may past costs onto you.

Financing Through A Drug Addiction Treatment Center

Addiction treatment providers also may be able to help you directly with financial assistance. This is available through payment options such as a sliding fee scale or financing.

Sliding fee scales base treatment costs on how much a client brings in, making treatment more accessible for people with lower incomes.

Payment plans through drug and alcohol rehab centers enable clients to finance their treatment by spreading the cost burden over several payment installments.

Of course, not all treatment providers will be able to do this. Those that can may add interest to the payments.

Other Payment Options

Taking out a loan is a big step, so you want to be sure that you have considered all of your payment options for addiction rehab costs.

Check to see if you qualify for government-funded insurance plans such as Medicare or Medicaid. If you have little or no income, you may qualify for Medicaid. If you are over 65, look into Medicare.

There may be other state-funded insurance plans that you can look into as well. You can also check to see if you qualify for benefits under the Affordable Care Act (ACA).

Also, check to see if you qualify for Substance Abuse and Mental Health Services Administration (SAMHSA) block grant funding through your rehab center.

Find Addiction Treatment Today

If you or a loved one are looking for addiction treatment, call us today. We have information for you about your treatment options, the recovery process, and how to get started.

This page does not provide medical advice. See more

Addiction Resource aims to provide only the most current, accurate information in regards to addiction and addiction treatment, which means we only reference the most credible sources available.

These include peer-reviewed journals, government entities and academic institutions, and leaders in addiction healthcare and advocacy. Learn more about how we safeguard our content by viewing our editorial policy.

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Medically Reviewed by
Johnelle Smith, M.D. on
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