MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:   

	BOARD DATE:            20 March 2001                  
	DOCKET NUMBER:   AR2000046426

	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	
	Ms. Gale J. Thomas		Analyst	

  The following members, a quorum, were present:

	Mr. Fred N. Eichorn		Chairperson	
	Mr. Raymond J. Wagner		Member	
	Mr. William D. Powers		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 the Army repay his student loans, specifically the UNIPAC(Unipac Service Corp)/MILOAN (Michigan Education Loan). 

APPLICANT STATES:  That he was told that if he enlisted in the Army under the Loan Repayment Program (LRP) that all of his student loans would be paid.  To date all of his other loans have had partial payments applied to his outstanding balances except for two loans that were initially taken out at Ferris State University through the Michigan Education Loan, that are now financed by the Unipac Service Corporation.  These two loans have been combined into one loan payment, and no payments have been received from the Army’s LRP.   

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

He entered the Delayed Entry Program on 8 January 1998.  His DA Form 3286-66, Statement of Understanding, United States Army Incentive Enlistment Program, shows that he enlisted for the LRP.  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.  He enlisted in the Regular Army on 13 May 1998.

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.  

In the processing of this case, an advisory opinion was obtained from the Education Incentives Branch, U. S. Total Army Personnel Command.  The opinion stated that the loan for which he was requesting payment is a law student loan that is not made, insured or guaranteed under Title IV, Part B, D, or E of the Higher Education Act of 1965.  There were no exceptions to the law; therefore, payment could not be made toward this student loan.  The opinion did note that to date, the applicant has received his first and second year payments totaling $13,857.64.  His third year payment totaling $6,928.81 will be authorized and submitted to Defense Finance and Accounting Services for check disbursement in May 2001. 

The advisory opinion was provided to the applicant for possible rebuttal.  The applicant has failed to respond within the given timeframe.

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(s), it is concluded:

1.  In order to justify correction of a military record, the applicant must show to the satisfaction of the Board, or it must otherwise satisfactorily appear, that the record is in error or unjust.  The applicant has failed to submit to evidence to show error or injustice in this case.  

2.  The applicant did enlist for the Loan Repayment Program, and did qualify for repayment of some of his loans, to date, he has received his first and second year payments totaling $13, 857.81.  

3.  The applicant borrowed money for his education and then joined the Army to have his qualifying loans repaid, however, his UNIPAC loan does not qualify for repayment under the Loan Repayment Program.   

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

___fne___  ___rjw___  __wdp__  DENY APPLICATION

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

INDEX

CASE ID	AR2000046426	
SUFFIX		
RECON	YYYYMMDD	
DATE BOARDED	200010315	
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.  128.00		
2.		
3.		
4.		
5.		
6.