Premium and Domain expiring – options?

One of the websites I help with has been using a registered domain name and the premium services. Both are set to expire soon, and the owner can’t afford to renew them. We would like to keep the free version of the site, and maybe register the domain elsewhere. When I log in as the owner of the webpage, on “My Sites” is shows the free domain name: callielevina.wordpress.com

When I open the dashboard, again, it shows the free domain name, but it also says:

Some of your subscriptions have expired or are about to expire.
Tenacious Health ‘callielevina.com’ expires on October 16, 2014
Tenacious Health ‘WordPress.com Premium’ expires on October 16, 2014

When I view the page, directly, I can still get there by typing in the callielevina.wordpress.com, but it then shows as the domain name she registered: callielevina.com

If we don’t do anything, and let these two expire, will the free webpage still exist with the content?

Is it possible to transfer the domain name to another company, renew the domain name and then use it on the free site?

I have screenshots, but I’m not sure how to add pictures to this message. Sorry.

Thank you for any help with this.

Aimee