http://www.nola.com/news/t-p/frontpage/index.ssf?/base/news-7/1172300567254830.xml&coll=1Hurricane Katrina's floodwaters ruined everything Jessica Horne had in her New Orleans dorm room at Dillard University, so like more than 1.7 million other evacuees, she applied for disaster assistance.
The Federal Emergency Management Agency came through with a check for $2,000, which helped defray the cost of her clothes and laptop computer. Then, unexpectedly, another check arrived. And then another.Horne eventually received $9,500 from FEMA. Now the agency wants the money back -- and is prepared to play hardball to get it, holding out the threat of collection agencies and criminal prosecution.
"I was, like, there is no way this is happening," said Horne, now a sophomore psychology major at Tennessee State University in Nashville. "That's a large sum of money to be lending out and wanting back, especially for someone who is a full-time student."Horne, 19, is one of thousands of New Orleans college students who received disaster assistance after the 2005 storm, only to receive letters months later from the federal disaster agency demanding repayment.
Federal law says that anyone incurring a "disaster-related" expense is eligible for assistance, regardless of whether he is a resident of the state where the disaster struck. But FEMA says things aren't so clear-cut when it comes to college students whose primary residence is often their parents' house....(more)