Defense of Laches (Unreasonable and harmful delay in demanding payment)

Because default on a publicly-financed debt, such as student loan or grant obligation, harms the taxpayer, Federal law precludes the debtor from avoiding repayment by claiming that the debt should not be enforced because of delays in demanding its repayment. Moreover, where the debt is a student loan, the borrower has agreed in the promissory note to apprise the holder of the loan of his or her current address. Thus, a claim that the debt, or interest owed on the debt, should not be enforceable because of delays in demanding payment is also barred because the borrower, not the lender or the Department, was legally obligated to notify the holder of his or her correct address.