MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:   

	BOARD DATE:           25 February 1999                   
	DOCKET NUMBER:   AC98-11972
				   AR1998012887

	I certify that hereinafter is recorded the record of consideration of the Army Board for Correction of Military Records in the case of the above-named individual.

	Mr. Loren G. Harrell		Director	
	Mrs. Nancy Amos		Analyst	

  The following members, a quorum, were present:

	Mr. James M. Alward		Chairperson	
	Ms. Jennifer L. Prater		Member	
	Mr. Samuel Calderon		Member	

	The Board, established pursuant to authority contained in 10 U.S.C. 1552, convened at the call of the Chairperson on the above date.  In accordance with Army Regulation 15-185, the application and the available military records pertinent to the corrective action requested were reviewed to determine whether to authorize a formal hearing, recommend that the records be corrected without a formal hearing, or to deny the application without a formal hearing if it is determined that insufficient relevant evidence has been presented to demonstrate the existence of probable material error or injustice.

	The applicant requests correction of military records as stated in the application to the Board and as restated herein.

	The Board considered the following evidence:

	Exhibit A - Application for correction of military 
                records
	Exhibit B - Military Personnel Records (including
	            advisory opinion, if any)

APPLICANT REQUESTS:  That the Army repay the student loans that he was told qualified.

APPLICANT STATES:  Upon enlisting he was told by his Military Entrance Processing Station (MEPS) counselor that all of his loans qualified for the Loan Repayment Program (LRP).  Based on this information, he enlisted for 4 years and 17 weeks.  The Loan Repayment Center now says that two of his loans do not qualify for the LRP and he has to repay them.

EVIDENCE OF RECORD:  The applicant's military records show:

He entered the Delayed Entry Program on 17 July 1996.  His DA Form 3286-59, Statement for Enlistment, shows that he enlisted for the U. S. Army Incentive Enlistment Program – Loan Repayment Program.  His DA Form 3286-66, Statement of Understanding, United States Army Incentive Enlistment Program, shows that he enlisted for the LRP.  On this form, he acknowledged that under the LRP the government would repay a designated portion of any loan he incurred that was made, insured or guaranteed under Part B of the Higher Education Act of 1965 or any loan under Part E of such act after 1 October 1975 and before he enlisted into the Regular Army.  DD Form 1966/1, section 21, block 51, shows code “N.”  He enlisted in the Regular Army on 15 October 1996.

In 1997, the applicant applied to have two loans repaid under the LRP.  The Education Incentives Branch, U. S. Total Army Personnel Command denied that request because the loans were Consern Loans, which were not made, insured or guaranteed under Title IV part B or E of the Higher Education Act of 1965.

The Loan Repayment Program is a Department of the Army enlistment option authorized by Public Law 99-145.  This option is designed to increase Test Score Category I-IIIA accessions.  Loans that qualify for repayment are Guaranteed Student Loan/Stafford Loans, National Direct Student Loan/Perkins Loans, William D. Ford Loans, Supplemental Loans for Students, Federally Insured Student Loans (FISL), Parent Loan for Undergraduate Students (PLUS), Auxiliary Loan Assistance for Students (ALAS), and consolidated loans which fall under Title IV, Part B or E of the Higher Education Act of 1965, or William D. Ford Loan.  Before entering active duty, the loan must not be in default.  The borrower is responsible for obtaining a deferment/forbearance with the loan holder and the loan must remain in good standing throughout the repayment process.  Active Army LRP participants earn their first loan repayment after completion of a full year of active duty and for each full year thereafter, up to 3 years.  Payment of 33 1/3 percent or $1,500, whichever is greater, is authorized annually to the loan holder on the total remaining original outstanding principal balance.  

Army Regulation 601-202 prescribes Army-unique policies, responsibilities and procedures for the administration of veterans’ education programs and education incentives authorized by law.  In pertinent part, it states that the U. S. Army Recruiting Command ensures the accuracy of DD Form 1966/1, section 21, block 51.  Code “L” is used to show that the enlistee meets LRP eligibility criteria and possesses promissory notes.  Code “N” shows LRP ineligibles.  Code “U” is used if the soldier enlists for the LRP but did not possess the promissory note at the time of enlistment.

In the processing of this case, an advisory opinion was obtained from the Education Incentives Branch, U. S. Total Army Personnel Command.  The opinion referenced its previous (1997) correspondence and reiterated that the loans for which he was requesting payment were not authorized loans under the meaning of the Higher Education Act of 1965.  There were no exceptions to the law; therefore, payment could not be made toward these student loans.  The opinion did note that to date, the applicant has received two-thirds payment toward $9.000 on loans that did qualify under the LRP.

This opinion was provided to the applicant for possible rebuttal.  The applicant failed to respond within the given timeframe.

DISCUSSION:  Considering all the evidence, allegations, and information presented by the applicant, together with the evidence of record, applicable law and regulations, and advisory opinion it is concluded:

1.  In order to justify correction of a military record, the applicant must show to the satisfaction of the Board, or it must otherwise satisfactorily appear, that the record is in error or unjust.  The applicant has failed to submit evidence tat would satisfy the aforementioned requirement.

2.  The applicant did enlist for the Loan Repayment Program and at least one of his loans did qualify for repayment; to date, he has received two-thirds payment toward $9,000 on such a loan.

3.  The applicant’s DD Form 1966/1, section 21, block 51 is coded “N,” LRP ineligible.  It was known at the time of his enlistment that at least one loan was not eligible under the LRP.  

4.  The applicant has provided no evidence to show that these two loans did qualify under the Higher Education Act of 1965.

5.  In view of the foregoing, there is no basis for granting the applicant's request.

DETERMINATION:  The applicant has failed to submit sufficient relevant evidence to demonstrate the existence of probable error or injustice.

BOARD VOTE:

________  ________  ________  GRANT

________  ________  ________  GRANT FORMAL HEARING

__JMA___  __JLP___  ___SC___  DENY APPLICATION

						Loren G. Harrell
						Director

INDEX

CASE ID	AC98-11972/AR1998012887	
SUFFIX		
RECON		
DATE BOARDED	19990225	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	(DENY)	
REVIEW AUTHORITY		
ISSUES         1.	112.00	
2.		
3.		
4.		
5.		
6.