Show r ii j wh by Senator Orrin I f Hatch New measure tracks down federal deadbeats Is a loan still a loan if if you borrow money but dont don't pay it back No then its it's probably called a feder federal l loan The federal government which has loaned out more than billion in over separate loan programs is the largest credit institution in the world It also boasts the worlds world's poorest collection tion rate In fiscal 1979 the federal government collected less than half of what it was supposed to be repaid repaid leaving leaving over 25 billion in the hands of delinquent bor bor- borrowers rowers Federal losses from un un- un uncollected collected debts are growing at the rate of 23 percent a year one Eighty percent of those who received a federal student loan are delinquent in paying it back Over federal employees many of them earning high salaries have defaulted on on some sort of federal loan Those who fail to return their federal loans are not just cheating the govern they ment-they are cheating the honest tax tax tax- taxpayers payers who pick up the slack And dur- dur during lug ing this time of numerous budget cuts they they are cheating students and small businessmen and other potential bor- bor borrowers borrowers rowers who must meet tightened reo re- requirements for federal aid While the government is cutting its spending and seeking in other ways to cut federal deficits collecting old debts is an important way to raise federal revenues That's the point of a bill that helps government agencies track down and collect from delinquent borrowers With the strong backing of the Reagan the bill has been approved approved ed by two Senate committees The bill allows government agencies to refer delinquent debtors to private collection firms It stiffens the iden- iden identification identification requirements required of those who borrow from the govern govern- government government ment It provides a way for federal employees who owe the government money to set aside part o of their paycheck to cover that debt Other segments of the bill give private colle collection tion firms access to the addresses that delinquent borrowers rue file with the Internal Revenue Service to help in collecting overdue loans It lets the IRS share with other govern govern- government government ment agencies information it has relating to whether loan applicants would e be good credit risks In doing all these things the bill does more than raise money It stresses the idea that a loan from Uncle Sam is not a gift I |