MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:  

	BOARD DATE:  26 March 2002
	DOCKET NUMBER:  AR2001061238

	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. Joyce A. Wright		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:  In effect, that the Army repay her student loans.

APPLICANT STATES:  That she was promised that her Alaska Student Loans,
which she acquired before entering the Army, would be repaid.  She also states that her deferment forms were not forwarded to the loan holder by the
Military Entrance Processing Station (MEPS) and unknowingly went into default during basic training and Advanced Individual Training (AIT).  As a result, her
loans were paid on or after her AIT and the balance was substantially reduced before the repayment eligibility date.  Her loans were also reviewed by the MEPS officers before enlistment, were found to be eligible for the Department of Defense (DOD) Loan Repayment Plan (LRP), and were promised to be paid in January 2001.  In support of her application, she submits a copy of a personal letter, a letter from the US Total Army Personnel Command (PERSCOM), Education Incentives and Counseling Branch, two copies of her DD Form 2366 (Montgomery GI Bill Act of 1984 (MGIB)), a copy of her DA Form 3286-66 (Statement of Understanding/United States Army Incentive Enlistment Program), a copy of her DA Form 3286-59 (Statement for Enlistment/US Army Delayed Enlistment Program), and two copies of her DD Form 2475 (DOD Educational Loan Repayment Program (LRP) Annual Application).

EVIDENCE OF RECORD:  The applicant's military records show she enlisted 
under the Delayed Entry Program (DEP) on 6 January 2000.  She enlisted in the Regular Army on 18 January 2000, as a military policeman (95B) for a period of 5 years.  She continues to serve and is presently assigned to the 21st Military Police Company (Airborne), Fort Bragg, North Carolina.

The applicant provided two copies of her DD Forms 2366, dated 6 January 
2000 and 24 January 2000, which were authenticated in her own hand, and show the entry “I DO NOT desire to participate in the MGIB.  I understand that I WILL NOT be able to enroll at a later date.”

The applicant’s DA Form 3286-66, item 1(a) shows that the applicant enlisted 
for the LRP.  Item 4 shows the entry “I understand that I must DISENROLL from the GI Bill in order to qualify for this program.  DISENROLLMENT MUST BE ACCOMPLISHED at the time I enter on active duty.  If I fail to complete the disenrollment portion of the DD Form 2366, I will not be eligible for the LRP and will become automatically enrolled in the GI Bill.”

Item 4(a) states “I understand that under this program (LRP) 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.  Not to Exceed 65,000.”

The applicant provided two copes of her DD Forms 2475 pertaining to her student loans.

The applicant provided a copy of a letter from PERSCOM, Education Incentives and Counseling Branch, dated 16 July 2001.  The letter was written in regards to the two enclosed DD Forms 2475, which were recently received from the Alaska Commission on Postsecondary Education.  The letter stated that individuals enlisting with the LRP as part of their contract must meet certain eligibility criteria.
Part of the eligibility criteria is to have loans that qualify under the LRP and that only certain loans qualify for repayment.  Such loans must be covered under Title IV, Part B, D, or E of the Higher Education Act of 1965.  The letter also stated that if a soldier has another type of loan, the LRP would not repay it.  Payment toward loans that do not qualify under the LRP are in violation of the law governing this program.  There are no exceptions to the law.  The applicant has 
a full-time Alaska Student Loan, on which the original unpaid principal balance is $5,353 and which is not eligible under the LRP.

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 Loans 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 Loans.  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 evidence of record shows that the applicant enlisted under the LRP and 
had acquired two student loans prior to her entry on active duty.  The evidence of record also notes that the applicant signed her addendum to her MGIB Enlistment Contract attesting to the fact that she was disenrolled from the MGIB.

2.  The Board notes the Chief, Education Incentives Counseling Branch, received two copies of the applicant’s DD Forms 2475 from the Alaska Commission on Postsecondary Education.  However, upon receipt of the two DD Forms 2475, the Chief, Education Incentives Counseling Branch, determined that the applicant’s loans did not qualify for repayment under the LRP.  The Board also notes that the applicant’s DD Forms 2475 indicated that the applicant’s loans
were under the Full-time Alaska Student Loan, which were not made, insured or guaranteed under Title IV, Part B, D, or E of the Higher Education Act.  Therefore, the Army is not authorized to repay the applicant’s student loans.

3.  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.

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

__gp___  ___dj____  ___rb_____  DENY APPLICATION

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

INDEX

CASE ID	AR2001061238	
SUFFIX		
RECON		
DATE BOARDED	200110xx	
TYPE OF DISCHARGE		
DATE OF DISCHARGE	Active duty	
DISCHARGE AUTHORITY	AR .  .  .  .  .  	
DISCHARGE REASON		
BOARD DECISION	DENY	
REVIEW AUTHORITY		
ISSUES         1.  1026		
2.		
3.		
4.		
5.		
6.