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Report: Clinton to forego repaying herself

Sen. Hillary Clinton (D-NY) speaks during a rally for the Paycheck Fairness Act and the Lilly Ledbetter Fair Pay Act held by female Democratic members of Congress in Washington on July 17, 2008. The Lilly Ledbetter Fair Pay Act was passed in the House last year, and the rally called on the Senate to do the same. (UPI Photo/Jack Hohman)
Sen. Hillary Clinton (D-NY) speaks during a rally for the Paycheck Fairness Act and the Lilly Ledbetter Fair Pay Act held by female Democratic members of Congress in Washington on July 17, 2008. The Lilly Ledbetter Fair Pay Act was passed in the House last year, and the rally called on the Senate to do the same. (UPI Photo/Jack Hohman) | License Photo

WASHINGTON, Aug. 11 (UPI) -- Former U.S. presidential candidate Hillary Clinton's campaign won't pay back her loans to it ahead of other vendors owed money, Politico reported Monday.

Clinton, a Democratic U.S. senator from New York, and her husband, former U.S. President Bill Clinton, will write off $13 million in personal loans they made to Clinton's failed campaign, the Washington political news Web site said citing unnamed sources.

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A mid-September deadline for paying back the loans will be allowed to pass by the Clintons, at which point the loans will be reclassified as contributions, the source said.

The Web site said the Clintons' willingness to forego repayment before the deadline probably reflects a decision to avoid a public relations fallout if they had decided to pay themselves ahead of the $12 million owed to campaign vendors, many of them small businesses.

Clinton's campaign has $25 million in debt, analysts said.

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