I am in the air force, being medically separted/board. However, I owe the air force $109,978. I would like to pay it back.

Dear all:

I am currently in the Air Force as a captain. I came in under
the Health Professions Scholarship Program (HPSP) where the military
paid for my medical school ahead of time and I, in turn, promised to
serve.

Due to unfortunate circumstances, I am being medically boarded.
My date of separation is 22 Oct 03. I just received a letter from
DPAME saying that I owe $110K for the investment that the air force
has put into me.

If I could have served my time, I would have happily done it.
However, I wsa not able to. Now, regarding the money, I would like to
do the best I can to pay it back. I am brain-storming here to find
ways to pay it back.

From time to time, I hear of commercials from law firms saying
they can help negotiate debts with the IRS. I wonder if there is a
similar way that the Air Force negotiates debts. I know with the IRS,
sometimes if you are able to come up with a large lump sum, they
forgive the rest of the debt.

My wife and I have saved up $70,000. I wonder if there is a way
to negotiate with the military and give them the lum sum of $70,000
and have them call it even. Even though $70,000 represents the
entirety of our savings, we are willing to give it all to the air
force if it means that we can wipe clean the slate.

Any suggestions would be appreciated. Has anyone here ever owed
money to the military and negotiated a reduced debt? Also, if you
think there is a better/more appropriate place to post this question,
please let me know.

sincerely, Capt Tang (Dr. Tang) USAF MC (Medical Corps)

here is a link to the photos of my wife and I serving in the air force
(we are both active duty. My wife is staying in the service as a
doctor): http://gallery.pethobbyist.com/index...91190&size=big