MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:   

	BOARD DATE:            5 April 2000                  
	DOCKET NUMBER:   AR1999028350

	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. Edmund P. Mercanti		Analyst	

  The following members, a quorum, were present:

	Mr. Raymond V. O'Connor, Jr.		Chairperson	
	Mr. Stanley Kelley		Member	
	Mr. Lester Echols		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 her student loans be paid under the terms of her Student Loan Repayment Program (SLRP) contract.

APPLICANT STATES:  Her SLRP was wrongfully terminated.  She was delinquent in paying her loans, they were not in default.

In support of his request she submits a copy of her student loan promissory note.  In that promissory note it is stated “ . . . any of the following events could be considered a default:  my failure to make a payment when it is due . . ."  She also submits the form she completed requesting the first payment under the SLRP.  The loan servicing center of the applicant’s lender wrote on that form that the applicant was 92 days delinquent in her payment.

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

She enlisted in the USAR with no prior service for assignment to a troop program unit on 6 May 1987.  In conjunction with that enlistment she was given the SLRP, the Montgomery GI Bill, and a cash bonus.

On 31 October 1989 she enlisted in the Army National Guard.

The SLRP provides for the repayment by the Government of a designated portion of any outstanding student loan(s) that are not in default secured after 1 October 1975.  The loan amount to be repaid is 15 percent of the original balance of the loan plus accrued interest not paid by the Department of Education, or $500.00 plus the accrued interest not paid by the Department of the Education, whichever is greater.  Payments will be made for each year of satisfactory service in the Selected Reserve.  The maximum amount of loans against which the 15 percent is computed will not exceed $10,000.  This equates to a maximum annual repayment of $1,500 plus interest.  If the amount set for repayment if less than $500.00, then $500.00 becomes the calculated amount for repayment that year.  To be eligible for the SLRP incentive, a person must contractually obligate himself to service satisfactorily, must serve in the Selected Reserve for a full term of the contractual agreement and must further obligate himself to continue to serve in the same component and the same MOS unless excused for the convenience of the Government.  Entitlement to the SLRP will stop if the soldier contracted for an MOS authorized by Department of the Army for SLRP entitlement and moves to an ineligible MOS, or is reclassified, unless at the express direction of the NGB.  A soldier will not be eligible for any initial or subsequent loan repayments until he or she has completed IADT, is MOS qualified, and has been awarded a high school diploma. Each complete satisfactory year of service performed under this SLRP agreement establishes an anniversary date.  As with the bonus incentive the SLRP is tied to service in a valid position vacancy.

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

1.  The documents submitted by the applicant herself verifies that her loans were in default.  Her promissory note defines default as being late on a payment, and her request for SLRP payment shows that she was 92 days late on her payment.

2.  Since the applicant’s student loan was in default, it was not payable under the SLRP.

3.  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

__rvo____  _sk_____  __le ____  DENY APPLICATION

						Karl F. Schneider
						Director, Army Review Boards Agency

INDEX

CASE ID	AR1999028350	
SUFFIX		
RECON	YYYYMMDD	
DATE BOARDED	2000.04.05	
TYPE OF DISCHARGE	(HD, GD, UOTHC, UD, BCD, DD, UNCHAR)	
DATE OF DISCHARGE	YYYYMMDD	
DISCHARGE AUTHORITY	AR .  .  .  .  .  	
DISCHARGE REASON		
BOARD DECISION	DENY	
REVIEW AUTHORITY		
ISSUES         1.	108.05	
2.		
3.		
4.		
5.		
6.