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FEMA rolls out plan to waive Katrina victim debts

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By MICHAEL KUNZELMAN, The Associated Press Updated 11:11 AM Wednesday, February 8, 2012

NEW ORLEANS — The Federal Emergency Management Agency is beginning a plan to waive debts for thousands of victims of Hurricane Katrina and other disasters.

An aide to Sen. Mary Landrieu who has been briefed by FEMA says the agency will mail out roughly 90,000 letters next week to inform disaster victims that they may be eligible for waivers.

Last year, the agency sent out debt notices in an effort to recover more than $385 million it says was improperly paid to victims of hurricanes Katrina, Rita and Wilma in 2005.

Officials said people are eligible for waivers if they earn less than $90,000 a year and a FEMA error was responsible for the improper payment.

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February 08, 2012 04:05 PM EST

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