MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:   

	BOARD DATE:           5 December 2000                   
	DOCKET NUMBER:   AR2000037362

	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. Carl W. S. Chun		Director	
	Mrs. Nancy Amos		Analyst	

  The following members, a quorum, were present:

	Ms. Ann M. Campbell		Chairperson	
	Mr. Allen L. Raub		Member	
	Mr. Jose A. Martinez		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:  Reimbursement of his student loan.

APPLICANT STATES:  That he gave personnel at the Military Entrance Processing Station (MEPS) two promissory notes for two different loans.  They said both loans qualified for repayment under the Loan Repayment Program (LRP).  Now he is being told his Citiassist loan does not qualify.

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

That he enlisted in the U. S. Army Reserve Delayed Enlistment Program on      28 August 1998.  His Statement for Enlistment United States Army Enlistment Program U. S. Army Delayed Enlistment Program, DA Form 3286-59, shows he enlisted for the Training Enlistment Program and the Incentive Program (LRP not to exceed $65,000 and $12,000 cash bonus).  His Statement of Understanding United States Army Incentive Enlistment Program, DA Form 3286-66, shows he enlisted for the LRP not to exceed $65,000.  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.  His Record of Military Processing - Armed Forces of the United States, DD Form 1966/2, item 32 shows he enlisted for training, cash bonus and SLRP (sic) not to exceed $65,000.  In item 33, his recruiter certified that he had not promised the applicant anything other than what was listed in item 32 and further certified that “service regulations governing such enlistments have been strictly complied with…”  On his Statement of Understanding – Army Policy USAREC Addendum to DD Form 1966 series, USAREC Form 1150, he acknowledged that he understood he must bring copies of all his student loan promissory notes when he reported to the MEPS for his active duty ship date.  On 6 October 1998, he enlisted in the Regular Army for 6 years.  

On an unknown date, the applicant was apparently notified that one of his two student loans did not qualify for repayment.  The loan document is not available.

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.  

The Government will not make any payments to the soldier or reimburse a soldier if he or she pays off a student loan.  The Government will only pay the lending institution.

In the processing of this case, an advisory opinion was obtained from the Chief, Education Incentives and Counseling Branch, U. S. Total Army Personnel Command.  That office recommended disapproval of the applicant’s request and noted that based on information obtained from the loan holder, the loan does not qualify for repayment under the LRP.  Since the loan does not meet the criteria under the law, payment cannot be made.  To date, the applicant has received one-third payment toward $2,625 on a loan that qualifies under the LRP.

This opinion was provided to the applicant for comment/rebuttal.  The applicant rebutted the advisory opinion.  He stated that the reason he enlisted was because of the LRP and he was promised the Army would pay both of his loans. He has tried getting a copy of the document that lists the loans specifically and the amounts of them.  The form does exist somewhere because it almost held him up at MEPS because they could not read the amount owed on that loan.  When they got the loan re-faxed, they put it on the form with the other loan and everything else went as planned.

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.  The evidence of record shows that the applicant enlisted in the Regular Army, in part for the Loan Repayment Program incentive, on 6 October 1998.  He had obtained two student loans prior to his entry on active duty and it appears that he was informed that both of the loans met the criteria to qualify for repayment under the LRP.  One of those loans is being paid under the terms of the incentive.

2.  The applicant was later informed that the second loan did not qualify under the incentive.  He states that MEPS personnel prepared a form that listed both those loans as qualifying loans.  However, that form is not available.  In the absence of corroborating evidence, such as that form or sworn statements from his recruiter or MEPS personnel stating that they did inform him that both loans qualified, the applicant’s uncorroborated statement is insufficient evidence to grant the relief requested.
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

__amc___  __alr___  __jam___  DENY APPLICATION

		    Carl W. S. Chun
		    Director, Army Board for Correction
    of Military Records

INDEX

CASE ID	AR2000037362	
SUFFIX		
RECON		
DATE BOARDED	20001205	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	(DENY)	
REVIEW AUTHORITY		
ISSUES         1.	128.00	
2.		
3.		
4.		
5.		
6.