I believe that if you just send money to a personal account and make sure that you pick "Service" it's still free- as long as they are both personal accounts and are using Paypal balances, not credit cards.
Fees
PayPal charges Premier and Business accounts to receive payments. Personal accounts are free, but may not receive debit or credit card payments.
        Personal Account         Premier/Business Account
Open an Account Free         Free
Send Money         Free         Free
Withdraw Funds Free for bank accounts in the US
Free for bank accounts in the US
Add Funds         Free         Free
Receive Funds         Free         1.9% + $0.30 USD to 2.9% +$0.30 USD
Multiple Currency Transactions         Exchange rate includes a 2.5% fee*         Exchange rate includes a 2.5% fee*
These fees apply to U.S. users only. For Canadian fees, click here. For European fees, click here. Otherwise, click here.