B-146527, SEP. 29, 1961

B-146527, SEP. 29, 1961

TO DR. JAMES W. RHEA:

YOUR LETTER OF SEPTEMBER 13, 1961, REQUESTS FURTHER CONSIDERATION OF YOUR INDEBTEDNESS TO THE UNITED STATES IN THE AMOUNT OF $500 PLUS INTEREST IN CONNECTION WITH THE STUDENT LOAN YOU RECEIVED UNDER PUBLIC LAW 647, 77TH CONGRESS, 56 STAT. 576, WHILE ATTENDING THE NEW YORK MEDICAL COLLEGE.

OUR LETTER B-146527 OF SEPTEMBER 7, 1961, TO YOU CONTAINED A COMPREHENSIVE EXPLANATION OF THE APPLICATION OF THE STATUTE AND REGULATIONS INVOLVED. THE FACT THAT 17 YEARS HAVE PASSED SINCE YOU INCURRED THE DEBT CANNOT EXCUSE ITS PAYMENT. NOR DOES ANY DELAY ON THE PART OF THE GOVERNMENT IN ENFORCING PAYMENT EXTINGUISH THE INDEBTEDNESS. AS PREVIOUSLY EXPLAINED TO YOU THE TERMS OF THE LOAN WERE CLEAR AND NO DOUBT WERE MADE KNOWN TO YOU AT THE TIME YOU FILED APPLICATION THEREFOR.

YOU WERE PREVIOUSLY ADVISED THAT STUDENTS WHO ENTERED ANY RESERVE PROGRAM OF THE ARMY OR NAVY PRIOR TO THEIR ACCEPTANCE OF A STUDENT WAR LOAN AND WERE SUBSEQUENTLY CALLED TO ACTIVE DUTY ARE DEEMED TO HAVE ENTERED THE SERVICE VOLUNTARILY AND WERE THEREFORE ENTITLED ONLY TO DEFERMENT OF THIS OBLIGATION. IN THE SAME MANNER STUDENTS WHO ENTERED A RESERVE PROGRAM AFTER ACCEPTANCE OF A LOAN AND WHO WERE CALLED TO ACTIVE DUTY WERE ENTITLED ONLY TO A DEFERMENT OF REPAYMENT. ONLY THOSE STUDENTS WHO WERE INDUCTED (DRAFTED) UNDER THE SELECTIVE TRAINING AND SERVICE ACT OF 1940 BEFORE COMPLETING THEIR COURSES OR WHO SUFFERED DEATH OR PERMANENT DISABILITY ARE UNDER THE LAW ENTITLED TO CANCELLATION OF THEIR OBLIGATION. SINCE YOU VOLUNTARILY ENLISTED IN THE RESERVE CORPS AND WERE NOT INVOLUNTARILY ORDERED (DRAFTED) INTO THE MILITARY SERVICE UNDER THE SELECTIVE TRAINING AND SERVICE ACT OF 1940, AS AMENDED, THERE IS NO LEGAL AUTHORITY PURSUANT TO WHICH YOUR INDEBTEDNESS IN THE MATTER MAY BE EXTINGUISHED. IN THIS CONNECTION, THE PROMISSORY NOTE EXECUTED BY YOU ON DECEMBER 7, 1942, TO SECURE REPAYMENT OF THE LOAN,CLEARLY OUTLINED THE CONDITIONS UNDER WHICH THE LOAN COULD BE CANCELLED OR DEFERRED.

ANY FAILURE ON YOUR PART TO FAMILIARIZE YOURSELF WITH THE TERMS OF THE LOAN AT THE TIME YOU APPLIED THEREFOR CANNOT OPERATE TO DEFEAT THE PROVISIONS OF THE STATUTE AND REGULATIONS ISSUED PURSUANT TO THE STATUTE.

YOU WERE ADVISED IN OUR LETTER OF SEPTEMBER 7 THAT IN VIEW OF THE CIRCUMSTANCES WE WOULD SUBMIT ANY SUBSTANTIAL OFFER IN COMPROMISE THAT YOU WOULD CARE TO MAKE WITHIN THE TIME STATED IN THAT LETTER TO THE DEPARTMENT OF JUSTICE FOR THAT AGENCY'S CONSIDERATION. WE CANNOT, AS YOU REQUEST IN YOUR LETTER OF SEPTEMBER 13, 1961, DIRECT THE DEPARTMENT OF JUSTICE TO SOLICIT YOUR COMPROMISE OFFER. OUR ONLY AUTHORITY IN THE MATTER IS TO COLLECT FULL PAYMENT OR WHERE AN OFFER IN COMPROMISE IS MADE TO SUBMIT THE MATTER TO THE DEPARTMENT OF JUSTICE FOR CONSIDERATION. OTHERWISE IT IS INCUMBENT UPON US TO REQUEST THE JUSTICE DEPARTMENT TO INSTITUTE LEGAL PROCEEDINGS TO ENFORCE PAYMENT.

YOU HAVE PRESENTED NO ADDITIONAL EVIDENCE IN YOUR LETTER OF SEPTEMBER 13, 1961, UPON WHICH OUR OFFICE WOULD BE JUSTIFIED IN ALTERING THE CONCLUSION REACHED IN OUR DECISION OF SEPTEMBER 7, 1961, B-146527. THEREFORE, WE HAVE NO ALTERNATIVE BUT TO INSIST THAT YOU COMPLY WITH THE PROVISIONS STATED IN THAT DECISION, EXCEPT THAT WE WILL EXTEND THE 30-DAY PERIOD UNTIL 30 DAYS FROM THE DATE OF THIS LETTER.