MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:   

	BOARD DATE:            9 November 2000
	DOCKET NUMBER:   AR2000041026

	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. William Blakely		Analyst	

  The following members, a quorum, were present:

	Ms. Jennifer L. Prater		Chairperson	
	Mr. Orville W. Troesch, Jr.		Member	
	Ms. Barbara J. Lutz		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 he be reimbursed for the money that he paid on his student loan totaling $608.00.

APPLICANT STATES:  That he enlisted in the Army in order to qualify for the Student Loan Repayment Program (SLRP).  He states that he paid the balance of his student loan totaling $608.00.  Also, he has completed his enlistment and hopes the Army will refund the $608.00 that he paid.  In support of his application he submits a credit report and a copy of the cancelled checks used to pay the balance of his student loan.

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

The applicant enlisted in the Army on 17 February 1994 for 4 years and the SLRP.  He was awarded military occupational specialty (MOS) 91B (Medical Specialist).  He was honorably discharged in the pay grade of E-4 on 
16 February 1998.

During the enlistment process the applicant acknowledged by signature on 
DD Form 1966/3, Section IV (Remarks) that he understood that under the loan repayment program, the Army will not repay any amount above $55,000 and that he must provide copies of his loan repayment notes to his guidance counselor before his ship date in order to keep his loan repayment option.

An additional DD Form 1996/3 indicated the applicant acknowledged that he had failed to provide copies of his loan promissory note and now must present them to his personnel officer immediately.  Failure to do so could result in the applicant losing his loan repayment option.

The SLRP provides for the repayment by the Government of a designated portion of any outstanding student loans(s) 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 is 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 or herself to serve satisfactorily, must serve in a reserve unit for a full term of the contractual agreement and must further obligate himself or herself 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 is separated form the Selected Reserve.  Each complete satisfactory year of service performed under this SLRP agreement establishes an anniversary date.  Any qualifying loan which is at least a year old may then be paid in accordance with the terms of this educational enlistment incentive.

Public Law 99-145, Chapter 109, Educational Loan Repayment Programs, Section (d), states, in pertinent part, that “nothing in this section shall be construed to authorize refunding any repayment of a loan”.

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

1.  The Board notes that the applicant authenticated by signature that it was his responsibility to provide his loan repayment notes to the proper authorities, and failure to do so could result in a loss of his SLRP.

2.  The Board found no evidence, and no evidence has been submitted by the applicant that the Department was at fault in its obligation to pay the balance of his student loan totaling $608.00.

3.  The law is clear.  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.

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

__JLP___  __OWT___  __BJL___  DENY APPLICATION

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

INDEX

CASE ID	AR2000041026	
SUFFIX		
RECON	YYYYMMDD	
DATE BOARDED	20001109	
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.	112.00	
2.		
3.		
4.		
5.		
6.