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you probably would never go to jail. What will happen is that the overpayment unit will start trying to get this money back from you. It is state money, they will not get your federal income tax refund or keep you from signing up on grants. But they can stop you from applying for state educational benefits, and get your state income tax refund. They can also garnish your wages. This can certainly hurt your credit rating, injure your situation with your new employer. If you ignore their calls and attempts to resolve this, they may very well do this.

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