In 1989, she declared bankruptcy, which did not discharge her student loan obligation. Through 1996, Griggs did not respond to government notices, court records say. She was told her debt was referred to a collection agency, the IRS was alerted to subtract payment from her tax refunds and she was threatened with exclusion from the Medicaid program. Griggs did not return messages from The News that were left at her office. The government's hammer over those who fail to repay is considerable, said Hotz.
Debtors are subject to judgments that remain until balances are paid in full.
Liens are placed on personal property, triggering notification to the government whenever the debtors apply for mortgages or enter into other large financial transactions. Since last year, the Department of Health and Human Services have made defaulters' names public by publishing them in the Federal Register. If you borrow money, you have to pay it back, or sooner or later someone will show up asking for the cash. Writer David Shepardson contributed to this report.