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5 N.J.A.R. 126

Higher Education Assistance Authority v. Basaman, Edward T
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Citation: 5 N.J.A.R. 126
Decision Date: 1983
Synopsis: The New Jersey Division of Taxation turned over to the State's Higher Education Assistance Authority the respondent's 1981 home- stead rebate because of his alleged nonpayment of a guaranteed stu- dent loan. The action was taken under the Setoff Individual Liability Program, N.J.S.A 54A:9-8.1 et seq. The administrative law judge assigned to the case found that despite repeated opportunities to do so, respondent had never paid off his student loan which was evidenced by the lack of any notation of payment in the authority's business records. The judge rejected the argument that the right of set-off was barred by the statute of limi- tations, since such statutes do not extinguish the underlying debt but merely bar the creditor's access to the remedy of suing in court. Even if the statute of limitations were available as a defense, the judge noted that it was unlikely that the State was barred by such a statute. Accordingly, it was ordered that the authority might apply respon- dent's rebate to satisfy the indebtedness on his student loan. Grey J. Dimenna, Deputy Attorney General, for petitioner (Irwin I. Kimmelman, Attorney General of New Jersey, attorney) Edward T. Basaman, respondent, pro se