Reconsideration of Claim for Living Quarters Allowance

An employee requested reconsideration of the denial of his claim for a living quarters allowance incident to his employment with the Department of Defense school system. The agency's initial determination of eligibility for a living quarters allowance was clearly erroneous, and the agency acted properly in withdrawing the allowance. However, the employee's indebtedness arising from the erroneous payment of the allowance may be waived.