MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:   

	BOARD DATE:           26 March 2002      
	DOCKET NUMBER:   AR2001061376

	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:  That it was agreed that the loan would be paid with his satisfactory performance in the Army.  He contends that this loan was part of his enlistment contract.  In support of his application, he submits a copy of a letter, dated 23 July 2001, from the U.S. Total Army Personnel Command; DD Form 2475 (DOD Educational Loan Repayment Program Annual Application); a copy of the University of San Diego Permanent Restricted Student Loan Fund Promissory Note; and copies of his enlistment contract.

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

On 30 July 1992 the applicant applied for and received a student loan from the University of San Diego 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 25 May 2000.  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 and the LRP.  He enlisted in the Regular Army on 13 June 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’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”.

The applicant provided a letter, dated 23 July 2001, from the Chief, Education Incentives and Counseling Branch, U.S. Total Army Personnel Command.  This letter indicates that the applicant’s student loan from the University of San Diego is a privately funded trust loan and is not eligible for 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 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 student 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	AR2001061376	
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.