MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:   

	BOARD DATE:           26 March 2002  
	DOCKET NUMBER:   AR2001060686

	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. Wanda L. Waller		Analyst	

  The following members, a quorum, were present:

	Mr. George Paxson		Chairperson	
	Ms. Deborah Jacobs		Member	
	Mr. Ronald E. Blakely		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 loan under the Loan Repayment Program (LRP). 

APPLICANT STATES:  In effect, that the loan was used for educational purposes at an accredited university and that it was his understanding and belief prior to and during the enlistment process that the loan in question qualified for the LRP. He contends that the injustice was discovered after more than a year completion of his current enlistment and that all other administrative recourses had been exhausted.  In support of his application, he submits a letter of explanation with six enclosures described in Attachment A.    

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

On 16 September 1998, the applicant applied for and received an Illinois Student Assistance Commission (ISAC) Alternative Loan through the University of Chicago for educational purposes.  There is no evidence in the available records which shows this loan was made, insured, or guaranteed under Title IV, Part B, D, or E of the Higher Education Act of 1965.  

The applicant entered the delayed entry program on 18 November 1999.  His DA Form 3286-59 (Statement for Enlistment) shows that he enlisted for the U.S. Army Incentive Enlistment Program (Cash Bonus ($16000) and LRP).  His DA Form 3286-66 (Statement of Understanding) shows he enlisted for the U.S. Army Cash Bonus ($16000) and the LRP.  He enlisted in the Regular Army on 
20 January 2000 for a period of 4 years.  

At the time the applicant submitted his application to the Army Board for Correction of Military Records, he was serving on active duty in pay grade E-4.  The applicant also stated that he is scheduled to be discharged on 19 January 2004.      

In the processing of this case an advisory opinion was obtained from the Chief, Education Incentives Branch, U.S. Total Army Personnel Command.  That office recommends disapproval of the applicant’s request.

The opinion points out that the applicant’s DA Form 3286-66, Section 4, item a states “I understand that under this program (LPR) that the government will repay a designated portion of any loan I 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 I enlist into the Regular Army”.  In addition, Public Law 99-145, Section 671(a)(1) confirms loans eligible for repayment must be made under Title IV, Part B, D, or E of the Higher Education Act of 1965.

The advisory opinion further states that based on documentation provided, the applicant’s ISAC Alternative Loan does not qualify for repayment under the LRP. The Alternative Loan Program is considered a private loan and not made, insured, or guaranteed under Title IV, Part B, D, or E of the Higher Education Act of 1965.  There are no exceptions to the law; therefore, payment cannot be made toward his student loan.  The applicant borrowed money for his education and then joined the Army to have his qualifying loans repaid.          

On 9 October 2001, a copy of the advisory opinion was provided to the applicant for comment and possible rebuttal.  He responded with a letter of rebuttal on 
29 October 2001.  In summary, the applicant states that he was improperly counseled as to the coverage of the LRP prior to his enlistment into military service and that the Army would create a “fundamentally injustice situation” by refusing to cover the ISAC Alternative Loan under the LRP.  He contends that his promissory note and all relevant paperwork was provided, reviewed and accepted as being covered under the LRP by the Denver, Colorado, Military Entrance Processing Station and at the reception battalion at Fort Leonard Wood, Missouri.  He goes on to state that the LRP is one of the main reasons he enlisted into the Army and that by failing to honor its promise to him the Army will be disrespecting itself, its soldiers, and the principle of integrity that has been a driving force throughout the Army’s history.          

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, D or E of the Higher Education Act of 1965.  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 applicant did enlist for the Loan Repayment Program.  However, evidence of record shows that the applicant’s ISAC Alternative Loan was not made, insured, or guaranteed under Title IV, Part B, D, or E of the Higher Education Act of 1965.  Therefore, payment cannot be made toward this student loan.

2.  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.

3.  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

GP_____  DJ______  REB_____  DENY APPLICATION

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

INDEX

CASE ID	AR2001060686	
SUFFIX		
RECON		
DATE BOARDED	20020326	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY	  	
DISCHARGE REASON		
BOARD DECISION	(DENY)	
REVIEW AUTHORITY		
ISSUES         1.	112.1200	
2.		
3.		
4.		
5.		
6.