United States v. Falcon

The repeal of the statute of limitations for federally guaranteed student loan collection does not violate a student loan debtor’s due process rights.

Mark Falcon obtained several guaranteed student loans. He signed promissory notes agreeing to pay all disbursements, interest, and fees. Falcon allegedly defaulted on some of his loans. The guaranty agency paid the loan holders, which payment was reimbursed by the Department of Education. Falcon’s unpaid loans were assigned to Department of Education (DOE). The government brought this action and won on summary judgment in district court. Falcon appealed. On appeal, the Ninth Circuit decided whether Congress’ elimination of the statute of limitations for federally guaranteed student loan collection violates student loan debtors’ due process rights. The panel held that due process is not violated. Further, the repeal of the statute is not a constitutional violation. Regardless, even if it was, the collection efforts on Falcon’s loans would have fallen within the former statutory time period. AFFIRMED.