Oct 31, 2008 11:33 am US/Pacific
Goldstein Reports: Is Your Doctor A Deadbeat?
LOS ANGELES (CBS) ―
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Dr. Peggy Locke defaulted on her student loans and owes the federal government more than $300,000.
CBS
[David Goldstein] Doctor, you owe over $300,000 on your student loan. Do you plan on paying it off sometime?
"No"
[DG] How come?
Doctor Peggy Locke, a chiropractor with a practice in trendy Santa Barbara, defaulted on her student loan. She says she's not paying it back -- so taxpayers had to pay it off.
Nineteen years ago was when you graduated college. The taxpayers have paif off that loan. You don't think you should pay it back? You think that's fair that taxpayers should pay for your schooling?
She had nothing to say. Later in E-mail Dr. Locke claimed it was misinformation. And also left some choice comments on our voicemail.
"You (expletives)."
From Santa Barbara on the West coast -- to just about any state on the East coast -- more than 1000 medical professionals owe more than $100 million on their student loans. And guess what? You're paying for it.
Doctors, chiropractors, dentists ... all took out loans under the Federal Health Education Assistance Program. Designed to help medical professionals get through school. They borrowed a maximum of $80,000 from private institutions.
But with interest, many owe twice as much after defaulting on their loans.
Since the loan was guaranteed by the federal government, taxpayers had to pay it off. More than $145 million is owed nationwide, $45 million in California alone. Some by professionals who are in private practice.
You're driving a Mercedes convertible, live in a nice house in Pasadena, yet the taxpayers are footing the bill for over $200,000 on your student loan. Do you find anything wrong with that?
Doctor Robert Hansen, a Pasadena dentist, defaulted on his loan after going to USC Dental School. He now drives a Mercedes, which he is quick to point out, is in his wife's name. He owes $204,000 on his loan. But he says he's paying it back...16 years after he graduated.
"It's something that I have payment plans for and I honor my payment plans."
[DG] But you defaulted. Why?
"I was flat broke."
[DG] You owe $200,000 on your student loan.
Dr. David Wies, a chiropractor, also owes nearly $200,000 on his student loan.
You live in a nice house in Westlake Villace. Just a block away from the lake.
"I don't own it."
[DG] You live there?
"I live there, but I don't own it."
[DG] He says he's bankrupt. Dr. Peggy Locke also declared bankruptcy. Her's, just after receiving a note from the feds to pay up.
Do you believe some of these medical professionals could be hiding their assets?
"From what you describe, it sounds like it."
[DG] Lee Weidman heads up the unit of the US Attorney's office responsible for tracking down deadbeat doctors. He's recovered over $4 million in the past five years.
"Some of them we've found over time have been trying to avoid their responsibilities and in those cases we'll take as aggressive action as we can."
[DG] The feds say they'll fight Dr. Locke's bankruptcy petition -- and others who won't pay up.
It's $302,000. How come you're not paying it? Don't you think you should pay the taxpayers back ma'am?
David Goldstein, reporting
(© MMX, CBS Broadcasting Inc. All Rights Reserved.)
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