Warning if you have defaulted on Student Loan!!!
This post is long, but worth the read. I believe (hope) in my heart
of hearts that the amendment below mentioned was not enacted to hurt
others to the degree it has me. My personal example though extreme,
is an excellent example of what can happen, and has happened to me.
Please read my story, and if you feel so compelled write your senators
and congressmen and forward this along.
I am a registered nurse who presently works in a surgical intensive
care unit. I went back to school for my license later in life (age of
32). The years during my schooling were difficult with two small
children, and a sick husband, but I wanted to be a nurse and worked
very hard to reach my goals. During my time in school we lived very
lean to say the least about it. I have now been at my presnt employer
for four wonderful years. I love my job, because I can earn a living
and help others. I had wanted to be a nurse since childhood.
My husband has always had health problems, but has been disabled for
some time now, and I am my family's only income. My husband can't
receive disability until he has a definitive diagnosis which is still
forthcoming. Our doctor thinks he has lupus which takes a long time
to get a definite diagnosis.
Now, to why I am writing you today. In 1997 a bill amendment was
passed ~ Social Security Act 1128(b). This bill was initiated to
protect the public from healthcare workers who were being sanctioned
for malpractice. Unfortunately this bill was also amended by
President Clinton in his balance the budget plan, so therefore began
to include people who had defaulted on student loans, those people
this amendment affects are only health care workers; Not any of the
other licensed individuals within our 50 states that I am aware of.
I would never have made it through school without my student loans,
was thankful for them, and never planned to default on them! I have
worked tirelessly with one of my benefactors (in Missouri) to get my
obligation taken care of. I moved to Nashville Tenn. from Illinois
right after my graduation in order to obtain employment at Vanderbilt
with its vast learning opportunities. The first year we were here a
tornado whipped through Hermitage and destroyed all of our records,
memories, and many belongings. Due to that misfortune I could only
deal with the loan entities that stayed in contact with me. The
Illinois Student Loan Authority did not maintain contact with me. I
called my school for records and was unable to attain any except
information about the company I was already dealing with.
In 1999 on my tax refund over $1,700.00 was retained by the state of
Illinois government to pay this student loan. I had no foreknowledge
of the money being withheld. This past year a small amount (under
$50.00) was held back for the balance of said loan. I called them and
was told my obligation was paid. I breathed a sigh of relief thinking
that nightmare was over.
On April 30, 2001 I received a letter from the Dept. of Health & Human
Services informing me that I was excluded from participation in
Medicare, Medicaid and all Fed. Health care programs because my
license in Illinois was denied renewal because of my "financial
integrity." One week later I was fired from my second job at Summit
Medical Center (a part of HCA) promptly and without as much as a
personal call due to my sanctioned status. I actually showed up for
work and had been simply marked off of the schedule. I was working
the two jobs so we could survive. June 6th (Wednesday) I was sent
home on suspension from my primary employer without pay until the
matter was finalized, and my name taken off of that list. After many
calls I have found out there was another loan (it was small but with
interest and penalties is now $1,939.71)
The paperwork I have received from both the Dept. of Health and the
National Practitioner Data Bank gave no information as to whom the
reporting entity was, although I knew due to the income tax refund
action. Their paperwork also in errantly has me listed as a nurses
aid, but I am an RN. Nevertheless, I still am not being allowed to
work. I called them and one individual said my entire loan was paid,
another told me I still owed $1900.00. This was the Illinois Student
Loan Authority. I was informed that I would have to pay 6 months
before they would even consider removing me from the list, or pay the
loan in its entirety now. I was also informed be that "you better get
a lawyer." A lawyer is the last thing I can afford right now. How
does the government expect someone to pay them back without being able
to make a decent living?
Now I am in a predicament. I am not being allowed to work due to
money I owe. However, I cannot pay bills if I cannot work. I do not
have a back-up wage-earner in my household to help us be sustained
while I work this out with the powers that be. My family is in real
danger of imminent homelessness and disaster. Note: I not been
allowed to work since June 6th, even though I have put down a
considerable down payment and made payment arrangements, which
includes two payments already made on the loan balance. The Illinois
Board of Regulation has informed me that it will take 2-3 weeks longer
to be released even after they forced me to sign a waver of my rights
to a hearing on the matter. Without signing the waver I could not
hope to return to work any time soon. They originally told me 2-3
weeks when I first sent the waver back to them on June 23rd, now this
afternoon (7-24-01) I was told another 2-3 weeks. Meanwhile, the OIG
(Dept. of Health & Human Services) has advised me I will be forced to
go through another ordeal with them to get released to go back to
work, and they were going to force me to obtain an Illinois license
even though I only practice in Tennessee, fortunately through the
efforts of a nurse advocate agency called Nurseprotect at least now I
won’t have to send even more extra dollars out for a license I
will not be using soon! I also found out today that the Dept. of
Health & Human Services considers this a "criminal action" (criminal
for a debt? How close are we to debtors prisons now?) and I may never
be able to practice as a nurse again! My Tennessee license to
practice nursing is in good standing at this time, and I could take
care of private pay patients, but they are rare. Based on what the
government is projecting to me it could take a miracle for me to
return to work within another two months or longer. Ironically,
between both of the jobs I held, the Federal Government has already
lost more in income taxes from me than what the loan itself was worth!
I am now about to lose my apartment, have little food, I can't pay
utilities and have no resources. My work attire is limited to scrubs,
and it is hard for me to just go out and find something else (job)
when my expenses already equaled what I made, I have no money and no
clothes for other employment. I can't get unemployment. My extended
family members aren't in a position to help us. My employer has been
good enough to put me on extended (non-paid) leave without firing me,
but I have lost my benefits anyway because I can't pay the premiums;
now our insurance can legally call my husband’s condition
“pre-existing” even though it was not. At the moment of
this writing I have $0.00 to my name. Life right now is hell, and
frankly my nerves are shot. If the government was trying to destroy
us they are doing a bang up job of it.
This is good payback from the Government to someone who has dedicated
their life to improving and saving the lives of others. In the face
of a tremendous nursing shortage this amendment doesn't even make
sense. Young men and women considering nursing as a profession will
think twice when this goes public. It's a shame to say of humanity
and the people who work in government, but not one has been mildly
helpful or even concerned about the affect this is having on my
family. In fact, I have made multiple calls to both the Illinois
Student Aid Commission, IL Dept. of Regulation, Dept. of Health &
Human Services and their constituents; I always have to leave multiple
messages and rarely receive a call back. I have been spoken to
rudely, degraded and lectured by the people working in these outbranch
offices of the United States Government and even the American Nurses
Association when I had the nerve to ask them for help.
This is enough in itself, but I am also terribly upset that my name is
appearing on a list filled with mostly malpractitioners when my only
crime is being indebted, and a healthcare worker. It is odd to me
that Doctors and Nurses (et al) are being sanctioned and unable to
work when they have defaulted on a student loan but not others who
have defaulted the same system which is government funded loans. This
kind of action is discriminatory. My employer at first thought that
perhaps I was in malpractice!! I am a good nurse, and don't feel that
I deserve such treatment. My employer would risk losing their
government funding, and be subject to fines if I remained in their
employ as an active nurse while on this sanctioned list. I can't even
get a signature loan to pay this loan off due to my bad credit, and
the people that handle refinancing of student loans told me that this
entire process could take up to 90 days. In any of these options I am
out of work a minimum of 6 months! The two months I have already been
off have destroyed us. In view of my obligations to debtors including
my student loans, and my financial status and I am now in abject
poverty.
Please look at this bill and encourage changes so this doesn't happen
to others like me. I think the population needs to know this is going
on. Many people I have spoken to about this sound like they don't
believe it when I tell this story. This is incredulous, but 100%
true.
I think most healthcare workers that have money problems would agree
with me that garnishment of wages is a much better approach than what
this bill enacts, and it makes more sense. The government would be
earning tax dollars and still getting the loaned money back. I
realize it is partly a punitive action, but I owe a bill--I haven't
killed someone. It's a known fact that murderers in prison can work
in their field, and receive compensation for their work.
I would appreciate any comments or suggestions you may have.
This sounds like a "nightmare!". I live in Nashville and Vandy has
been my employer (in the past) plus I remember the tornado coming through
Hermitage and taking out plenty of trees from President Andrew Jackson's old
homestead there. Wow! This sounds too accurate to be a hoax.... (I used
to live in Illinois before I moved here as well...!)
1st - You wrote: "I called them and one individual said my entire loan was
paid,
another told me I still owed $1900.00. This was the Illinois Student Loan
Authority."
Anytime I am making calls like this I use "veritape" from
http://www.veritape.com/ to RECORD the conversation - it's free to download
on your computer and it's LEGAL in Tennessee to record phone calls without
telling the other party you are doing so. Get it recorded from the people
who are telling you what you owe or if it is indeed "paid in full".
2nd - request that they send you a copy or a letter putting that "paid in
full" status (or otherwise) IN WRITING!!! - ALWAYS do this with the IRS,
etc. Get EVERYTHING in writing from people in loan-repayment circles, your
employer(s) as to their actions, reasons for their actions and why they were
"required" by federal law to do thus and such - ie. requiring you to be
placed on suspension/fired, etc. Get EVERYTHING you can in writing. You
WILL need it both now and going forward.
3rd - You should probably be contacting your local representative(s)
office(es) and even Fred Thompson's and Bill Frist's (senators) offices as
well. Bill Frist used to do heart transplants at Vandy - he was my
daughter's doctor for a short while - SUPER guy incidentally! These kinds
of "royal screw-ups" can happen and it is PART OF our/your representatives'
job to help people with problems like yours.
4th - If you haven't done so already, contact your employer to extend your
health insurance under COBRA. I think you have 45 (or 90??) days to request
this coverage after you have left/been placed on suspension. If you are
truly in fear of losing coverage for your husband via it being classified as
"pre-existing" later on, then you should do whatever it takes to get the
insurance continued under Cobra. We had to do that when our daughter
required open-heart surgery & I couldn't go back to work for 6 months.
5th - Have you contacted some of the temp agencies in the area to see if you
could do temp work as an RN while this gets sorted out? As long are your TN
license if valid, I would think you should be able to. ?!?
Keep us posted on your progress and how this plays out.