United States v. Stella Menatos

Stella Menatos appeals from the district court's grant of summary judgment in favor of the United States in its action to collect defaulted National Direct Student Loans (“NDSLs”). Menatos contends the action is time-barred under federal law. In the alternative, Menatos claims the action is barred by the doctrine of laches. We affirm.

FACTS AND PROCEEDINGS

Between February 1, 1966, and October 4,1973, Menatos, a student at the University of California at Los Angeles (“UCLA”), executed and delivered fourteen promissory notes to UCLA for loans totalling $7,403.00 under the National Defense and National Direct Student Loan programs, now known as the Perkins Loan Program, authorized by Title IV-E of the Higher Education Act of 1965 (“HEA”), as amended, 20 U.S.C. §§ 1087aa-1087hh. The terms of these notes required repayment beginning nine months after a student ceased carrying at least one-half of the normal full-time academic workload at an eligible institution. On July 1, 1977, Mena-tos ceased carrying at least one-half the normal full-time workload at UCLA. However, she commenced graduate studies at UCLA in September of 1977 and repayment of the loans was deferred. Menatos ended…