MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:     

	BOARD DATE:          18 January, 2001                   
	DOCKET NUMBER:  AR2000038309

	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	
	Mr. Edmund P. Mercanti		                         Analyst	

  The following members, a quorum, were present:

	Mr. John N. Slone		Chairperson	
	Mr. John T. Meixell		Member	
	Mr. Melvin H. Meyer		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:  In effect, that the penalties and interest which have accrued on his student loans, along with the costs associated with refinancing those loans, be paid to him.

APPLICANT STATES:  In effect, that delays in paying his student loans resulted in penalties and interest accruing on his loans, and necessitated his making a loan to consolidate his two loans to keep them from going into default.  He claims that the Army National Guard (ARNG) has admitted that they are at fault, so the Army should pay the entire amount that he owes. 

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

He enlisted in the ARNG on 18 June 1987.  In conjunction with that enlistment he was given the Student Loan Repayment Program (SLRP) and a $2,000.00 cash enlistment bonus.  

On 22 October 1990 the applicant transferred from the Massachusetts ARNG to the Arizona ARNG.

On 24 April 1991 the applicant made a student loan in the amount of $4,000.00.  On 15 August 1991 he made a second student loan in the amount of $615.00.

On 12 December 1995 the Adjutant General (AG) of Arizona, in response to a Congressional inquiry, explained that a student loan must be at least a year old to be payable under the SLRP and, when the loan becomes a year old, it is payable at the anniversary date of the soldier’s enlistment at the rate of $500.00 or 15 percent of the outstanding balance, whichever is greater.  The AG then explained that the applicant’s first loan was eligible for its first payment on 18 June 1992, and his second loan was eligible for its first payment on 18 June 1994 (sic) (it should have read 18 June 1993).  The AG continued that the applicant’s entitlement terminated with his discharge from the ARNG.  However, because the applicant’s request for payment on his student loans had never been received for payment prior to his discharge, the AG agreed to pay the applicant $4,742.77 of the $7,220.00 he had outstanding on his student loan consolidation.

The SLRP provides for the repayment by the Government of a designated portion of any outstanding student loan(s) secured after 1 October 1975.  The loan amount to be repaid is 15 percent of the original balance of the loan, or $500.00, whichever is greater.  Payments will be made on the anniversary date of a soldier’s enlistment after the loan is at least a year old.  The maximum amount of loans against which the 15 percent is computed will not exceed $10,000.  If the amount set for repayment is less than $500.00, then $500.00 becomes the calculated amount for repayment that year.  

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 applicant has been paid what he was due for his service by the Arizona ARNG.  It would appear that the applicant believes that he should have been entitled to SLRP payments based on the date of his enlistment, not the date his loans became payable under the SLRP (a year after the date he made his respective student loans).  He was entitled to 15 percent of his $4,000.00 loan on 18 June 1992, and 15 percent of the remainder of the $4000.00 loan after that payment plus his subsequent $615.00 loan on 18 June 1993.  He was entitled to one last anniversary payment on 18 June 1994, the date he was discharged from the ARNG and transferred to the USAR Control Group.  As can be seen, he was entitled to three anniversary payments, not seven as he believes.

2.  If the applicant had reenlisted he would have continued to receive anniversary payments until he reached the $10,000.00 limit for his SLRP.

3.  While it is regrettable that the applicant’s SLRP payment was delayed because the ARNG never received his request for payment, the ARNG rectified the situation by paying to him what he was entitled under law and regulation. 

4.  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

___jns___  ___jtm___  ___mhm   DENY APPLICATION

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

INDEX

CASE ID	AR2000038309	
SUFFIX		
RECON	YYYYMMDD	
DATE BOARDED	20011018	
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.	128.05	
2.		
3.		
4.		
5.		
6.