MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:   

	BOARD DATE:           20 March 2001                   
	DOCKET NUMBER:   AR2000047629

	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:

	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 his student loans be repaid under the Loan Repayment Program (LRP).

APPLICANT STATES:  That the sole reason he enlisted was the fact that each of his school loans was going to be repaid in full under the guidelines of the LRP.  He was counseled by SFC T___ of the Seattle, WA Military Entrance Processing Station (MEPS) and by SFC L___ of the Spokane, WA MEPS that every single one of the loans he incurred were covered under the LRP.  On separate occasions, both SFC T___ and SFC L___ assured him that since the Signature Loan replaced the PLUS loan at the University of Puget Sound, it would qualify for repayment under the guidelines of the LRP.  Supporting evidence is as listed on the DD Form 149.

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

He entered the Delayed Entry Program on 3 June 1999.  His DA Form 3286-59, Statement for Enlistment, shows that he enlisted for the U. S. Army Incentive Enlistment Program – Loan Repayment Program.  His DA Form 3286-66, Statement of Understanding, United States Army Incentive Enlistment Program, shows that he enlisted for the LRP, loan repayment 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.  He enlisted in the Regular Army on 28 September 1999.

The applicant applied for repayment of his loans under the LRP and on                6 September 2000 he was informed that his Signature Loans did not qualify for repayment as they were loans which were not made, insured or guaranteed under Title IV part B or E of the Higher Education Act of 1965.

In the processing of this case, an advisory opinion was obtained from the Education Incentives and Counseling Branch, U. S. Total Army Personnel Command (PERSCOM).  That office recommended disapproval of the applicant’s request.  He has received one payment for his eligible loan(s) but the Signature Loans do not qualify for repayment.

A copy of the advisory opinion was provided to the applicant for comment or rebuttal.  He stated that he understood the reasoning behind PERSCOM’s disapproval; however, the LRP was the sole reason he enlisted.  He was told by his recruiter and MEPS personnel that the Signature Loans would be covered because the PLUS Loan was replaced by the Signature Loan.  He could not take out the PLUS Loan and so he was forced to use the Signature Loans.

One of the MEPS personnel identified by the applicant was contacted by an analyst with the Board.  SFC T___ informed the analyst that he did not specifically remember the applicant.  When an enlistee wants to enlist under the LRP option, he refers to the regulation to see if the type of loans the enlistee has is covered.

A copy of the email with SFC T___ was provided to the applicant for comment or rebuttal.  He stated that he was perplexed by SFC T___’s statement because he explained the situation regarding his loans to SFC T___.  The same situation occurred when he asked SFC L___ if his loans would be covered.

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.  

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 understands the applicant’s frustration with his situation.  Unfortunately, without corroborating evidence that he was informed by MEPS personnel that his Signature Loans qualified for the LRP the Board concludes that it would not be appropriate to consider granting relief.

2.  An analyst with the Board contacted one of the MEPS personnel identified by the applicant who stated that he did not specifically remember the applicant’s situation.  The applicant may want to consider contacting these individuals himself to aid in “jogging” their memories and, if successful, obtaining statements from them that they indeed informed him his Signature Loans qualified for the LRP.

3.  The applicant may also want to consider the regulatory remedy for correcting these errors which is to request discharge for a defective enlistment agreement. 

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	AR2000047629	
SUFFIX		
RECON		
DATE BOARDED	20010320	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	(DENY)	
REVIEW AUTHORITY		
ISSUES         1.	112.04	
2.		
3.		
4.		
5.		
6.