PROCEEDINGS

	IN THE CASE OF: 

	BOARD DATE:  1 August 2000
	DOCKET NUMBER:  AR1999027957

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

	Mr. Carl W. S. Chun		Director	
	Mr. Vic Whitney		Analyst	

  The following members, a quorum, were present:

	Ms. Deborah S. Jacobs 		Chairperson	
	Mr. Ernest W. Lutz		Member	
	Ms. Karol A. Kennedy		Member	

	The applicant and counsel if any, did not appear before the Board.

	The Board considered the following evidence:

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

FINDINGS:

1.  The applicant has exhausted or the Board has waived the requirement for exhaustion of all administrative remedies afforded by existing law or regulations.

2.  The applicant requests, in effect, that all of his student loans be considered eligible for the Loan Repayment Program (LRP) enlistment incentive.  If that request is not approved, then he requests that he be entitled to an enlistment bonus of up to $15,000 or reduce his enlistment from 4 years to 3 years.

3.  The applicant states that his recruiter informed him he could not receive an enlistment bonus because all of his student loans would be paid.  He was recently informed that three of his loans, in the amount of $9535, did not qualify.  He submits information on a fourth loan for $1870.  Additionally, he states that he was required to enlist for 4 years to receive language training and now he is not receiving the training.  This is an injustice that he wants corrected.

4.  The applicant’s military records show that he enlisted in the Army Reserve, Delayed Entry Program, in pay grade E-3 on 6 February 1998.  His Enlistment Document (DD Form 4/1), shows that he was to enter the Regular Army (RA) for 4 years and 17 weeks beginning 17 June 1998.

5.  On 17 June 1998, the applicant enlisted in the RA for 4 years and 17 weeks in pay grade E-4.  The enlistment options he was contracted for included training as an infantryman, airborne training, station of choice, the Loan Repayment Program (LRP), and assignment to a ranger unit as shown at annexes C, D, and E to his Enlistment Document.  He acknowledged that these were the sole promises made to him concerning his enlistment.

6.  His enlistment documents show that he acknowledged, with his initials and signature, that “the government will repay a designated portion of any loan I incurred that was made, insured, or guaranteed under Part B of the Higher Education Act of 1975 or any loan under Part E of such act after 1 October 1975 and before I enlist into the Regular Army.”

7.  The applicant provides copies of three private loans made by him under the Northwest Collegiate Loan Program, totaling $9,535, that he submitted for qualification under the LRP.  He also provides a copy of a Partnership Loan for $2,000 that was not submitted by him for the LRP.

8.  In the processing of this case an advisory opinion was provided by the Education Incentives Branch, Total Army Personnel Command (PERSCOM).  The opinion notes that the applicant is receiving LRP payments toward $17,362.91 of qualifying loans but his other three loans did not qualify.  The opinion was provided to the applicant for possible rebuttal but he has failed to respond within the established time limit.

9.  Department of the Army message 200800Z, November 1997 discusses the Enlistment Incentive Program, effective 25 November 1997.  The message authorizes new enlistment incentives for selected skills and term of enlistment.  Paragraph 7. B. authorizes the linkage of an enlistment bonus with the LRP for 4 year enlistments.  The message also shows that enlistment in any infantry skill is authorized the LRP and a $12,000 enlistment bonus for a 4 year enlistment.

10.  Title 10, USC, section 2171, states that the Department may pay any loan made, insured, or guaranteed under part B of title IV of the Higher Education Act of 1965, or any loan made under parts D or E of such title.

11.  Army Regulation 621-202 provides the Army-unique policies for administration of education incentives authorized by law.  To be eligible for the LRP applicants must receive a loan made, insured or guaranteed under part B, D, or E of the Higher Education Act of 1965, after 1 October 1975.  Before entering active duty, the loan must not be in default.  Loans qualifying for repayment are:

(1)  Guaranteed Student Loan/Stafford Loans.
(2)  National Direct Student Loan/Perkins Loans.
(3)  Supplemental Loans for Students.
(4)  Federally Insured Student Loans.
(5)  Parent Loan for Undergraduate Students (PLUS). 
(6)  Auxiliary Loan Assistance for Students (ALAS). 

US Army Recruiting Command (USARECC) is responsible for insuring completion of DD Form 1966/1 (Record of Military Processing).  Block 51 will be coded with an “L” when the applicant does not possess the promissory note at the time of enlistment.  The applicant’s DD Form 1966/1 shows an “L” in block 51.

CONCLUSIONS:

1.  The applicant enlisted for the LRP enlistment incentive and has been receiving payments on his eligible loans in accordance with law and regulation.  He is not entitled to loan repayment for unqualified loans.

2.  There is no evidence of record, and none submitted by the applicant, that he was guaranteed payment on loans that clearly did not qualify for the LRP.  The appropriate enlistment form shows that he did not present the student loan promissory notes at the time of enlistment.

3.  Additionally, there is no evidence of record that he enlisted for or was otherwise guaranteed language training, that he says is now being denied, or that it had an effect on the term of his enlistment.
4.  Notwithstanding the preceding conclusions, there was an enlistment bonus in effect based on his enlistment for 4 years in the infantry skill.  The Board believes that it would now be in the interest of equity to show that the applicant is entitled to the $12,000 enlistment bonus.

5.  In view of the foregoing, the applicant’s records should be corrected as recommended below.

RECOMMENDATION:

1.  That all of the Department of the Army records related to this case for the individual concerned be corrected by:

	a.  showing that he was enlisted with the enlistment bonus of $12,000; and

	b.  authorizing the immediate disbursement of the initial enlistment bonus with additional amounts paid on the appropriate anniversary, if otherwise qualified.

2.  That so much of the application as is in excess of the foregoing be denied.

BOARD VOTE:  

__dj___  ___el____  __kk____  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

		___Deborah S. Jacobs___
		        CHAIRPERSON

INDEX

CASE ID	AR1999027957	
SUFFIX		
RECON		
DATE BOARDED	20000801	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	GRANT PARTIAL	
REVIEW AUTHORITY		
ISSUES         1.	112.1100	
2.	112.1200	
3.		
4.		
5.		
6.