MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:   

	BOARD DATE:           13 September 2001                   
	DOCKET NUMBER:   AR2001059645

	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. John E. Denning		Member	
	Mr. Terry L. Placek		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 under the Loan Repayment Program (LRP) be paid as guaranteed by his enlistment contract.

APPLICANT STATES:  That he was told in his contract that his student loans would be paid off.  That is the only reason he is in the Army.  He was never told what qualified and what did not before he got “this” (“this” was not provided).  

EVIDENCE OF RECORD:  The applicant's military records are not available.  Information contained herein was obtained from documents provided by the applicant.

On or about 23 June 2000, the applicant enlisted in the Regular Army for 4 years. His Statement for Enlistment, DA Form 3286-59, shows that he enlisted for the U. S. Army Incentive Enlistment Program – Cash Bonus of $16,000.  His DA Form 3286-66 shows that he also enlisted for the U. S. Army Incentive Enlistment Program - Loan Repayment Program up to $65,000.00.  The DA Form 3286-66 reflects that he understood 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.

The U. S. Total Army Personnel Command has verified that the applicant has two eligible, Stafford loans for $4,225.00 and $11,000 for which they authorized the first payment of $1,408,33 and $3,666.67, respectively, in June 2001.  He also had four private, unsecured loans totaling $22,483.84 that are not eligible for repayment.

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.  

Army Regulation 635-200 sets forth the basic authority for the separation of enlisted personnel from the Regular Army.  Chapter 7 discusses defective or unfulfilled enlistment or reenlistment agreements.  It states that an enlisted soldier will be discharged when a defective enlistment or reenlistment agreement exists under three circumstances.  One circumstance is when a material misrepresentation is made by recruiting or retention personnel on which the soldier reasonably relied and thereby was induced to enlist or reenlist with a commitment for which the soldier was not qualified. 

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 applicant’s enlistment contract does not specify that all his student loans were eligible for repayment.  However, if he believes he was misled by his recruiters into believing so, there is a regulatory remedy for correcting that type of error and that is to request discharge for a defective enlistment agreement.

2.  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___  __jed___  __tlp___  DENY APPLICATION

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

INDEX

CASE ID	AR2001059645	
SUFFIX		
RECON		
DATE BOARDED	20010913	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	(DENY)	
REVIEW AUTHORITY		
ISSUES         1.	112.04	
2.		
3.		
4.		
5.		
6.