BVA9500057 
DOCKET NO.  93-00 935     )       DATE
          )
          )

On appeal from the decision of the
Department of Veterans Affairs Regional Office in Waco, Texas

THE ISSUE

Waiver of recovery of loan guaranty indebtedness.

REPRESENTATION

Appellant represented by: Paralyzed Veterans of America,
Inc.

WITNESS AT HEARING ON APPEAL

Appellant

ATTORNEY FOR THE BOARD

Christopher P. Kissel, Associate Counsel

REMAND

The appellant had active duty from September 1979 to July 1985.

This matter came before the Board of Veterans' Appeals (the Board)
on appeal from a decision of the Committee on Waivers and
Compromises (the Committee) of the Department of Veterans Affairs
Regional Office in Waco, Texas, (VARO) issued in December 1990.
The appellant filed a substantive appeal to the Board in June
1992.

The undersigned believes that adjudication of the appellant's
claim at this time would be premature.  The most recent Financial
Status Report (FSR) of record is dated in January 1991.  However,
in view of the appellant's testimony elicited at a hearing before
a Member of the Board in January 1993, at which time he reported
a number of changed life circumstances (status of educational
pursuits, additional credit card debts, employment prospects, as
well as his wife's current employment status), the Board must
obtain more recent and updated information concerning his
financial status.  Decisions of the Board must be based on all of
the evidence available.  38 U.S.C.A. § 7104(a) (West 1991) and
Gilbert v. Derwinski, 1 Vet.App. 78 (1990).  Among the elements
of the standard of equity and good conscience is the element of
financial hardship.  38 C.F.R. § 1.965(b) (1993).  In determining
whether collection of the debt would prevent the veteran-debtor
from meeting necessities or the essential subsistence expenses,
the Committee is required to account for other "exceptional
expenses and debts."  See VBA Circular 20-90-5 (February 12,
1990).

Accordingly, to ensure that the Department of Veterans Affairs
(VA) has met its duty to assist the claimant in developing the
facts pertinent to the claim and to ensure full compliance with
due process requirements, the case is REMANDED to VARO for the
following development:

1.  VARO should contact the appellant,
through his representative, and request
that he provide objective proof of his
current educational status (degrees earned,
credits obtained in pursuit of a Masters in
Business Administration, etc.) as well as
information concerning his current
employment status.  VARO should attempt to
independently verify any of the above
information submitted by the appellant.

2.  Following completion of the above
requested development, the appellant should
be requested to submit an updated VA Form
4-5655, Financial Status Report, with any
additional supporting documentation
regarding income and expenses.

3.  With respect to the above development,
reasonable efforts to document the actions
taken should be made.  Also, any lack of
response or failure to cooperate should be
clearly documented in the file.

4.  After the development requested above
has been completed to the extent possible,
VARO should again review the record.  If
any benefit sought on appeal, for which a
notice of disagreement has been filed,
remains denied, the appellant and
representative, if any, should be furnished
a supplemental statement of the case and
given the opportunity to respond thereto.

Thereafter, the case should be returned to the Board, if in
order.  The Board intimates no opinion as to the ultimate outcome
of this case.  The appellant need take no action unless otherwise
notified.

          C. P. RUSSELL
          Member, Board of Veterans' Appeals

The Board of Veterans' Appeals Administrative Procedures
Improvement Act, Pub. L. No. 103-271, § 6, 108 Stat. 740, ___
(1994), permits a proceeding instituted before the Board to be
assigned to an individual member of the Board for a
determination.  This proceeding has been assigned to an
individual member of the Board.

Under 38 U.S.C.A. § 7252 (West 1991), only a decision of the
Board of Veterans' Appeals is appealable to the United States
Court of Veterans Appeals.  This remand is in the nature of a
preliminary order and does not constitute a decision of the Board
on the merits of your appeal.  38 C.F.R. § 20.1100(b) (1993).