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FEMA Forgives $67.8 Million Katrina Loan To St. Tammany Public Schools

FEMA Forgives $67.8 Million Katrina Loan To St. Tammany Public Schools

The St. Tammany public school system is off the hook for the $67.8 million it borrowed from the federal government to rebuild after Hurricane Katrina.

New Orleans CityBusiness reports Sen. Mary Landrieu's office announced Monday that the Federal Emergency Management Agency canceled the school system's debt after doing the same for the St. Tammany Parish Sheriff's office and its parish government last month.

FEMA intended to collect on its loans until Congress moved in 2012 to change the formula used to forgive community disaster loans. The new formula forgives nearly $211 million in community disaster loan debt among Louisiana communities.

Landrieu says she's hopeful that "the remaining loans in southeast Louisiana will be canceled and that all our communities will receive the same relief" soon.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

 

 

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