Aug 27, 2008 4:23 pm US/Pacific
Call Kurtis: Deadbeat Stimulus Checks
SACRAMENTO (CBS13) ―
We're talking millions of dollars in federally backed student loans. When they're not paid back, taxpayers end up footing the bill. This year, when these former students were expecting a check from the government, they didn't get one!
When the President announced taxpayers were getting a rebate check, Jayne Frye and her family knew how they'd spend the money.
"We said we'd put the money aside, find the cheapest fare and go east and see family. We were juiced about it. Free money," says Jayne.
The check never came. But a letter showed up from the IRS.
"The Department of Treasury sent a letter saying they took $600 and applied it toward my student loan. That's when I went rampant," says Jayne.
Frye admits she was wrong, letting her old student loan go delinquent. But she's paying it now.
In May, I showed you how doctors alone owe $146 million dollars in federally backed student loans they didn't pay back.
Sacramento marriage therapist Susan Boulware owed $144,000 from 22 years ago. She later admitted, up to that point she only paid $600 in 22 years.
During a recent search of the federal database of doctors who defaulted on loans, Boulware is no longer listed, which means it appears she's either paid off her debt, or worked out a deal to pay it off.
For others with outstanding debt, who were expecting rebate checks, the Treasury Department stung them by funneling $378 million in rebate money toward their loans.
Jayne is upset she was one of them. She's planning a letter writing campaign to lawmakers, because she is upset that her summer plans disappeared along with her stimulus check.
"Aunt Jude is still in Syracuse, and I'm still here doing a staycation," says Jayne.
The Treasury Department intercepted $1.8 million in stimulus checks from people who owe the government money. Mostly for unpaid child support, student loans and taxes. As we reported in May, the U.S. Attorney's office just stepped up its efforts to recover money people haven't paid back.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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