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United States of America v. Georgann K.

February 22, 2013

UNITED STATES OF AMERICA, PLAINTIFF,
v.
GEORGANN K. CUNNEY,
DEFENDANT.



The opinion of the court was delivered by: Joseph C. Spero United States Magistrate Judge

Northern District of California United States District Court

ORDER GRANTING PLAINTIFF'S MOTION FOR SUMMARY JUDGMENT

I. INTRODUCTION 14

Plaintiff, the United States, ("Plaintiff") brought this action against Defendant Georgann K. Cunney ("Defendant") seeking to collect on unpaid student loan debt. Presently before the Court is 16 Plaintiff‟s Motion for Summary Judgment ("Motion for Summary Judgment" or "Motion"). The 17 parties have consented to the jurisdiction of the undersigned magistrate judge pursuant to 28 U.S.C. § 18 636(c). A hearing on the Motion was held on February 22, 2013 at 11:30 a.m. For the reasons stated 19 below, Plaintiff‟s Motion for Summary Judgment is GRANTED. 20

II. BACKGROUND 21

Plaintiff filed the Complaint in this action on December 21, 2011 under 28 U.S.C. § 1345. In 22 the first cause of action in the Complaint, Plaintiff alleges that "Defendant owes plaintiff $35,585.12, 23 plus additional interest and costs according to the Certificate of Indebtedness, a copy of which is 24 annexed hereto as Exhibit A." Complaint, ¶ 3. In the second cause of action in the Complaint, 25 Plaintiff alleges that "Defendant owes Plaintiff $55,975.29, plus additional costs according to the 26 Certificate of Indebtedness, a copy of which is attached hereto as Exhibit B." Id. at ¶ 4. The 27 28 referenced certificates, apparently issued by the U.S. Department of Education, are attached to the 2 Complaint.*fn1 Id. at Exs. A and B. The first Certificate of Indebtedness states, in part, as follows: 3

Consolidation loan from the U.S. Department of Education. This loan was disbursed for $30,236.18 on 12/20/99, at 8.00 percent interest per annum. The loan was made by the Department under the William D. Ford Federal Direct Loan Program under Title IV, Part D of the Higher Education Act of 1965, as amended, 20 U.S.C. 1087a et seq. (34 C.F.R. Part 685).

The Department demanded payment according to the terms of the note, and the borrower defaulted on the obligation on 11/11/03. Pursuant to 34 C.F.R. § 685.202(b), a total of $5,348.94 in unpaid interest was capitalized and added to the principal balance.

On or about 12/03/99, the borrower executed a promissory note to secure a Direct

The Department has credited a total of $216.69 in payments from all sources, including Treasury Department offsets, if any, to the balance. After application of these payments, the borrower now owes the United States the following:

Principal: $35,585.12

Interest: $25,110.41

Court 13

Total Debt as of 02/07/11: $60,695.53

Interest accrues on the principal shown here at the rate of $7.79 per day.

Id. at Ex. A. The second Certificate of Indebtedness states, in ...


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