United States v. Warren J. Bellard

SAM D. JOHNSON, Circuit Judge:

The district court ruled that the United States is without a common-law right to indemnification from student borrowers who default on loans guaranteed under the Federal Insured Student Loan Program, Tit. IV-B of the Higher Education Act of 1965, 20 U.S.C. § 1071 et seq. Neither the statutory provision relied on by the district court nor the program’s legislative history discloses a congressional intention to deny to the Government that right of direct recovery which would otherwise arise from its agreement to serve as the borrower’s guarantor. The judgment of…