B-147538, NOV. 30, 1961

B-147538: Nov 30, 1961

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LEON LEVY: REFERENCE IS MADE TO YOUR LETTER DATED OCTOBER 18. WHILE YOU WERE ENROLLED AS A STUDENT AT THE UNIVERSITY OF FLORIDA. THE RECORD SHOWS THAT YOU WERE ENROLLED AS A STUDENT IN THE UNIVERSITY OF FLORIDA IN SEPTEMBER OF 1940 AND WERE IN CONTINUOUS ATTENDANCE PURSUING A COURSE IN ENGINEERING UNTIL THE END OF THE 1944 SUMMER SESSION AT WHICH TIME YOU CEASED ATTENDING THE UNIVERSITY. YOU WERE DRAFTED INTO THE NAVY AND RECEIVED AN HONORABLE DISCHARGE ON SEPTEMBER 20. THERE IS NO RECORD OF YOUR INDEBTEDNESS EVER HAVING BEEN CANCELED. WHILE THE INDEBTEDNESS ON THE LOANS WAS NEVER CANCELED. YOU APPEAR TO BE OF THE VIEW THAT IT SHOULD HAVE BEEN SINCE YOU WERE DRAFTED JANUARY 13. THE LOANS TO YOU WERE AUTHORIZED BY THE APPROPRIATION "LOANS TO STUDENTS IN TECHNICAL AND PROFESSIONAL FIELDS (NATIONAL DEFENSE)" UNDER THE HEADING "OFFICE OF EDUCATION" CONTAINED IN TITLE II OF THE LABOR-FEDERAL SECURITY APPROPRIATION ACT.

B-147538, NOV. 30, 1961

TO MR. LEON LEVY:

REFERENCE IS MADE TO YOUR LETTER DATED OCTOBER 18, 1961, REQUESTING REVIEW OF THE GOVERNMENT'S CLAIM AGAINST YOU IN THE AMOUNT OF $661.35, PLUS INTEREST AT 2 1/2 PERCENT, WHICH REPRESENTS UNPAID STUDENT WAR LOANS MADE TO YOU PURSUANT TO THE PROVISIONS OF PUBLIC LAW 647, 77TH CONGRESS, 56 STAT. 576, WHILE YOU WERE ENROLLED AS A STUDENT AT THE UNIVERSITY OF FLORIDA.

THE RECORD SHOWS THAT YOU WERE ENROLLED AS A STUDENT IN THE UNIVERSITY OF FLORIDA IN SEPTEMBER OF 1940 AND WERE IN CONTINUOUS ATTENDANCE PURSUING A COURSE IN ENGINEERING UNTIL THE END OF THE 1944 SUMMER SESSION AT WHICH TIME YOU CEASED ATTENDING THE UNIVERSITY. YOU HAD RECEIVED THE STUDENT WAR LOANS IN QUESTION DURING 1942, 1943, AND 1944.

ON JANUARY 13, 1945, YOU WERE DRAFTED INTO THE NAVY AND RECEIVED AN HONORABLE DISCHARGE ON SEPTEMBER 20, 1945. SUBSEQUENT TO YOUR DISCHARGE YOU RESUMED YOUR STUDIES AT THE UNIVERSITY AND RECEIVED THE DEGREE OF BACHELOR OF SCIENCE IN AGRICULTURE ON JUNE 7, 1948. THERE IS NO RECORD OF YOUR INDEBTEDNESS EVER HAVING BEEN CANCELED.

WHILE THE INDEBTEDNESS ON THE LOANS WAS NEVER CANCELED, YOU APPEAR TO BE OF THE VIEW THAT IT SHOULD HAVE BEEN SINCE YOU WERE DRAFTED JANUARY 13, 1945.

THE LOANS TO YOU WERE AUTHORIZED BY THE APPROPRIATION "LOANS TO STUDENTS IN TECHNICAL AND PROFESSIONAL FIELDS (NATIONAL DEFENSE)" UNDER THE HEADING "OFFICE OF EDUCATION" CONTAINED IN TITLE II OF THE LABOR-FEDERAL SECURITY APPROPRIATION ACT, 1943, (PUBLIC LAW 647). THAT ACT PROVIDES, IN PERTINENT PART, AS FOLLOWS:

"LOANS HEREUNDER SHALL BE MADE IN AMOUNTS NOT EXCEEDING TUITION AND FEES PLUS $25 PER MONTH AND NOT EXCEEDING A TOTAL OF $500 TO ANY ONE STUDENT DURING ANY TWELVE-MONTH PERIOD, SAID LOANS TO BE EVIDENCED BY NOTES EXECUTED BY SUCH STUDENTS PAYABLE TO THE TREASURER OF THE UNITED STATES AT A RATE OF INTEREST AT 2 1/2 PERCENTUM PER ANNUM. REPAYMENTS OF SUCH LOANS SHALL BE MADE THROUGH THE COLLEGES, UNIVERSITIES, OR OTHER AGENCIES NEGOTIATING THE LOANS AND COVERED INTO THE TREASURY AS MISCELLANEOUS RECEIPTS: PROVIDED, THAT INDEBTEDNESS OF STUDENTS WHO, BEFORE COMPLETING THEIR COURSE, ARE ORDERED INTO MILITARY SERVICE DURING THE PRESENT WARS UNDER THE SELECTIVE TRAINING AND SERVICE ACT OF 1940, AS AMENDED, OR WHO SUFFER TOTAL AND PERMANENT DISABILITY OR DEATH, SHALL BE CANCELED. THE FOREGOING LOAN PROGRAM SHALL BE ADMINISTERED IN ACCORDANCE WITH REGULATIONS PROMULGATED BY THE COMMISSIONER OF EDUCATION WITH THE APPROVAL OF THE CHAIRMAN OF THE WAR MANPOWER COMMISSION.'

SECTION 3.8 (D) OF THE REGULATIONS, PROMULGATED BY THE COMMISSIONER OF EDUCATION, FEDERAL SECURITY AGENCY, WITH THE APPROVAL OF THE CHAIRMAN OF THE WAR MANPOWER COMMISSION PURSUANT TO THE FOREGOING PROVISION OF LAW AND PUBLISHED ON AUGUST 26, 1942 (7 F.R. 6747, 6748), PROVIDES:

"CANCELLATION OF LOANS. IF ANY BORROWER BEFORE COMPLETING HIS COURSE OF STUDY IS ORDERED INTO MILITARY SERVICE DURING THE PRESENT WARS UNDER THE SELECTIVE TRAINING AND SERVICE ACT OF 1940, AS AMENDED, THE TOTAL UNPAID PRINCIPAL AMOUNT OF HIS LOANS AND INTEREST THEREON SHALL BE CANCELED. * * * THE INSTITUTION OR AGENCY SHALL REPORT TO THE COMMISSIONER ALL STUDENTS ENTITLED TO SUCH CANCELLATION.'

THE NOTES EXECUTED BY YOU CONTAIN SIMILAR PROVISIONS WITH RESPECT TO THEIR CANCELLATION.

A THOROUGH REVIEW OF THE LEGISLATIVE HISTORY OF THE STATUTE MAKES CLEAR THE CONGRESS INTENDED TO PERMIT CANCELLATION OF A LOAN IN CIRCUMSTANCES SOMEWHAT ANALOGOUS TO YOURS, ONLY WHERE THE STUDENT WAS PREVENTED FROM COMPLETING HIS COURSE OF STUDY BECAUSE ORDERED INTO THE MILITARY SERVICE UNDER THE SELECTIVE TRAINING AND SERVICE ACT OF 1940. THE REGULATIONS OF THE OFFICE OF EDUCATION CLEARLY CARRY OUT SUCH INTENT BY PROVIDING FOR CANCELLATION OF THE INDEBTEDNESS ARISING FROM STUDENT WAR LOANS ONLY IN THE EVENT OF (1) AN ORDER INTO THE MILITARY SERVICE UNDER THE SELECTIVE TRAINING AND SERVICE ACT OF 1940 (BEING DRAFTED) AND (2) THAT SUCH ORDER INTO THE MILITARY SERVICE PREVENTED THE COMPLETION OF THE COURSE.

INASMUCH AS THE RECORD CLEARLY ESTABLISHES THAT THE INTERRUPTION TO YOUR COURSE OF STUDY DID NOT OCCUR BECAUSE YOU WERE ORDERED INTO THE MILITARY SERVICE UNDER THE SELECTIVE TRAINING AND SERVICE ACT OF 1940, AS AMENDED, IN VIEW OF THE FACT THAT YOU HAD ALREADY CEASED ATTENDING CLASSES AS A STUDENT OF THE UNIVERSITY SOME FOUR MONTHS PREVIOUS, THERE IS NO LEGAL BASIS UNDER WHICH YOUR INDEBTEDNESS MAY BE CANCELED UNDER THE LAW AND REGULATIONS AS EXPLAINED ABOVE.

IN VIEW OF THE FACTS AND CIRCUMSTANCES DISCLOSED BY THE RECORD, WE CONCLUDE THAT YOU ARE LEGALLY OBLIGATED TO REPAY TO THE UNITED STATES THE PRINCIPAL AMOUNT OF THE LOANS PLUS INTEREST WHICH CONTINUES TO ACCRUE AT THE RATE OF 2 1/2 PERCENTUM PER ANNUM ON THE PRINCIPAL UNTIL PAID AS SET OUT IN THE PROVISION OF LAW QUOTED ABOVE.

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