United States v. Falcon, No. 13-16588 (9th Cir. 2015)
Annotate this CaseThe government filed suit to collect unpaid federally reinsured student loans from defendant. The Higher Education Technical Amendments of 1991 (HETA) eliminated all statutes of limitations on actions to recover on defaulted federally guaranteed student loans. The court concluded that HETA did not violate defendant's due process rights because HETA’s elimination of the limitations period for actions to collect on federally guaranteed student loans does not result in a denial of due process. In this case, the government established a prima facie case through certificates of indebtedness, which were signed under the penalty of perjury, showing that defendant executed promissory notes to secure loans, defaulted on the loans, and owed the United States certain amounts after offsets from various sources. Defendant failed to present sufficient evidentiary facts to raise a genuine issue of material fact or a question as to liability for the alleged indebtedness. Accordingly, the court affirmed the district court's judgment in favor of the government.
Court Description: Student Loans. The panel affirmed the district court’s judgment in favor of the United States in the government’s action to collect unpaid federally insured student loans. The panel held that the Higher Education Technical Amendments of 1991, which eliminated all statutes of limitations on actions to recover on defaulted federally guaranteed student loans, did not violate a student loan debtor’s due process rights. The panel also held that the student loan debtor failed to raise a genuine issue of material fact or a question as to liability for the amount of indebtedness alleged in the complaint.
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