MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:  

	BOARD DATE:            20 March 2001
	DOCKET NUMBER:   AR2001052989

	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. Rosa M. Chandler		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:  In effect, that his Medical College Access Program (MEDCAP), Allied Health student loans that were financed by Wells Fargo Education Financial Services (WFEFS), be paid based on his enlistment in the Army with the Loan Repayment Program (LRP) option.  

APPLICANT STATES:  In effect, that his enlistment contract states that the LRP 
will pay up to $65,000 towards his student loans.  However, he has been told that the Army will pay only $51,500 towards his outstanding student loans.  Before signing his enlistment contract, he submitted promissory notes for all of his outstanding student loans and he was never informed that he had loans that did not qualify for repayment under the LRP.  He submits a letter from the US Total Army Personnel Command (PERSCOM, Alexandria, Virginia, dated 8 August 2000; a copy of his DA Form 3286-59 (Statement for Enlistment United States Army Enlistment Program U.S. Army Delayed Enlistment Program); a copy of USAREC Form 1150 (Statement of Understanding-Army Policy USAREC Addendum to DD Form 1997 Series); copies of his DD Form 4/2 and 
4/3 (Enlistment/Reenlistment Document); copies of his DD Forms 2475 (DOD Educational LRP Annual Applications), from WFEFS, Sioux Falls, South Dakota dated 28 July 2000.  He also submits Applications and Promissory Notes signed by school officials at the MEDCAP, Allied Health dated 18 June, 14 October and 
10 December 1996, 19 May 1997 and 5 January 1998. 

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

That on 9 August 1999, he enlisted in the Delayed Entry Program (DEP) of the United States Army Reserve.  His DA Form 3286-66 (Statement of Understanding-United States Army Incentive Enlistment Program), shows that his enlistment options include Option 9A (US Army Training Enlistment Program), Option 9C (Loan Repayment Program) and a $6,000 cash bonus and a $6,000 seasonal bonus in accordance with DA Message DAPE-MPA-RP, 281005Z July 1999.  He also authenticated his DA Form 3286-66 indicating that he understood the provisions of the LRP.

On 15 September 1999, he enlisted in the Regular Army (RA) for a period of 
4 years.  He authenticated his DD Form 1966/3 (Record of Military Processing- Armed Forces of the United States) which shows that no changes to his enlistment contract were required upon enlistment. 

Even though the applicant enlisted for the LRP and claimed that he had eligible student loans, the available documents do not show that he submitted promissory notes/loan agreements from the “WFEFS” for review prior to entering on active duty. 

The DD Forms 2475 show that he has an outstanding student loan with WFEFS totaling approximately $31,492.78.  The DD Forms 2475 that the applicant submitted for payment of his “WFEFS” are dated 28 July 2000.  

He is currently serving in the rank of specialist, pay grade E-4, at Fort Meade, Maryland.

The PERSCOM letter, dated 8 August 2000 that the applicant submitted outlined the terms of the LRP.  Further, the PERSCOM letter states that the applicant's MEDCAP, Allied Health loans are private loans and do not meet the requirements of Title IV, Part B, D, or E of the Higher Education Act of 1965 and that there are no exceptions to the law.  Therefore, payment cannot be made towards this loan. 

In January 2000, the Defense Finance and Accounting Services made a $48,201.04 disbursement toward loans that are held by "Sally Mae" that qualify for repayment under the LRP.

Army Regulation 601-210 (Regular Army and Army Reserve Enlistment Program) prescribes eligibility criteria governing the enlistment of persons, with or without prior service, into the RA and the US Army Reserve.

Table 9-4 contains guidance on enlistment option program 9C (Bonus/Army College Fund/Loan Repayment Program).  It contains specific guidance pertaining to the LRP and indicates that the Government will repay a designated portion of any loan incurred that was "made, insured, or guaranteed under Part B of the Higher Education Act of 1965 (Guaranteed Student Loan) or any loan under Part E of such act (National Direct Student Loan) after 1 October 1975 and before enlistment into the RA."

Table 9-4 also provides program processing procedures that require Army Guidance Counselors to complete required entries on the DD Form 
1966 pertaining to an applicant’s eligibility for the LRP.  Part of the mandatory 
processing procedures includes a verification that the applicant has qualifying loans if enlisting for the LRP, and that the applicant be advised of any loan that is not eligible.  The applicant in the Remarks Section of the DD Form 1966 series must acknowledge these conditions.

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.  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 evidence that would satisfy this requirement.

2.  The applicant enlisted for the LRP and at least one of his loans did not qualify for repayment.  There is no evidence to show that he submitted copies of the promissory notes/loan agreement under review for evaluation prior to enlisting.  Therefore, he risked the possibility that this loan would not be eligible for payment under the LRP.

3.  His DA Form 3286-66 clearly specifies those loans for repayment under the LRP must be made, insured or guaranteed by one of two loan programs under the Higher Education Act prior to enlistment in the RA.  He acknowledged in writing that he understood these provisions.  He has provided no evidence to the contrary.  The Board must presume regularity in the processing of his enlistment contract.

4.  The applicant has failed to prove that he was misled or that the facts were misrepresented during the recruitment/enlistment process.

5.  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	AR2001052989	
SUFFIX		
RECON	YYYYMMDD	
DATE BOARDED	20010320	
TYPE OF DISCHARGE	N/A	
DATE OF DISCHARGE	N/A	
DISCHARGE AUTHORITY	N/A	
DISCHARGE REASON		
BOARD DECISION	(DENY)	
REVIEW AUTHORITY		
ISSUES         1.	128.1400	
2.		
3.		
4.		
5.		
6.