Oct 30, 2008 11:26 pm US/Eastern
I-Team: Local Docs Owe Millions In Unpaid Loans
BOSTON (WBZ) ―
They borrowed money from the federal government so they could go to school and become highly paid professionals. But a WBZ-TV I-Team investigation has found local dentists and doctors who have turned their backs on their obligations.
This affects every taxpayer because those loans were guaranteed by the government. Records show that millions upon millions of dollars are owed in unpaid loans.
Lincoln is one of Boston's wealthiest suburbs. It's in the center of that town that Dr. Steven Ramos has sent up his family dental practice. A 1987 graduate of Boston University, he helped finance his education under the "HEAL" program. Now defunct, it loaned up to $80,000 to students pursuing careers in health-related fields.
According to federal records, Ramos has defaulted at times over the years. With penalties and interest, he now owes more than $400,000. His case has publicly been listed on a federal Web site as being far behind on his loans.
Ramos declined multiple offers to explain how he could rack up such a large debt. An attorney ultimately provided documents to the I-Team which confirm Ramos skipped payments, sometimes for years at a time. He finally started repaying a portion of his loan a year and a half ago.
Federal authorities tell the I-Team it isn't easy to get on their Web site for defaulted doctors. A former student has to dodge several collection agencies, and refuse almost every effort to compromise.
There is a lot of taxpayer money at stake. More than 1,000 health professionals across the country owe close to $150 million. Just in Massachusetts, 22 defaulters are listed as owing $3.6 million.
Watertown chiropractor
Tom Alden is one of them. He borrowed $30,000 to attend Western States Chiropractic College more than 20 years ago. His tab now stands at just over $100,000.
Alden was asked why taxpayers should be paying for his education. He responded that wasn't the case, even though the loans are secured by the government. He told us he has made payments on his loans in the past, but has now run into financial problems. The I-Team has learned that Alden agreed to a revised payment plan in 2004 but again stopped making payments in February 2007.
"HEAL" recipients used these loans to enter some of the highest-paying professions. According to
salary.com, the median salary for a dentist is $138,000; for a chiropractor it's $84,000.
Paul Combe, president of American Student Assistance in Boston, said there are always some people who take advantage of student loan programs. When asked if he understood why some people might find these situations outrageous, he said that these atypical defaults do make him upset, both as a citizen and as a financial aid officer. He worries, however, that egregious cases like these can be used to portray student debt as a bad thing.
That can be the case in tight times, when it might seem that investing taxpayer dollars in a dentist like Dr. Karen Orazio-Venizelos of Belmont is unwise. Federal authorities tell the I-Team that the Acton resident owes close to $200,000 on her unpaid loans, adding that "she has not been making payments in a timely manner." She refused to provide the I-Team with any details on why she hasn't paid her loan back.
Combe worries that the legacy of these defaults could hurt responsible, well-meaning students down the road. He said cases like these "do not mean there should be any change in federal policy, based on a very small number of people, and that is the key point."
Putting these defaulted professionals on a very public Web site is just one way to try to shame them into repaying their loans. These individuals are also not getting reimbursed by the federal government if they treat Medicaid and Medicare patients.
It is also possible that the IRS could attach their wages, but that has not happened in these cases. Since we approached Ramos, his attorney tells us he is now trying to reach a settlement agreement with authorities. But that could take months to work out.
You can find other doctors in default, both here and around the country, by clicking
here.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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