MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:  

	BOARD DATE:  11 April 2002
	DOCKET NUMBER:  AR2001064234

	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:

	Ms. Margaret K. Patterson		Chairperson	
	Mr. Richard T. Dunbar		Member	
	Mr. Elzey J. Arledge		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 his student loan.

APPLICANT STATES:  In effect, that he enlisted under the Student Loan Repayment Program (SLRP), that his term of enlistment consisted of 4 years, loan repayment up to a maximum of $65,000, and disenrollment from the Montgomery GI Bill (MGIB) program.  He also states that in accordance with his agreement, he submitted the required documents and forms necessary in regards to his loans which were to be covered in his contract.  At the time of his enlistment counseling, he was informed that only loans in good standing were eligible and that each had to be on a deferment; however, his loans met all of the qualifications.  During the first year of his enlistment, his student loans were removed from deferment due to length of time and were unable to be processed.
Due to his overseas status, he was not informed of this information by his lending institution.  Upon returning to the US, he brought his loan to a current status and was advised by a financial counselor to contact personnel at the SLRP to submit his loan.  After speaking with a Loan Repayment Plan (LRP) representative, he was informed that his loan was still eligible upon completion of a DD Form 2475 (Department of Defense (DOD) Educational LRP Annual Application).  After reviewing the form, he was notified in writing that his loan was not eligible based on the fact that it was a Pennsylvania Higher Education Assistance Agency (PHEAA) Student Loan.  At the time of his enlistment, there was no counseling or documents stating that eligibility of his loan was dependent upon the type of loans.  Documents were submitted from the start stating that his loan was an Alternative Student Loan, in excess of $6,000.  He has served honorably during the past 3 years with the expectation that the Army would repay the balance of his student loan as promised.  He is now requesting that the length of his enlistment term be adjusted or an alternative solution be considered that is fair and just.  In support of his application, he submits copies of:  several documents pertaining to his enlistment contract; a letter from the US Total Army Personnel Command (PERSCOM), Education Incentives and Counseling Branch; a DD Form 2475; and two promissory notes.

EVIDENCE OF RECORD:  The applicant's military records show he enlisted 
on 20 August 1998, as an automated logistics specialist (92A) for a period
of 4 years.  He continues to serve and is presently assigned to the C Battery,
2/43rd Air Defense Artillery, Fort Bliss, Texas.

The applicant’s records contain a copy of a DD Form 2366 (Montgomery GI Bill Act of 1984 (MGIB)), dated 20 August 1998, which was authenticated in his own hand, and shows the entry, “I Understand That I am Enlisting for the LRP.  Therefore, I am Disenrolling from the MGIB.”  It also shows 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 promissory notes and several documents pertaining to his student loan.

The applicant provided a copy of a letter from PERSCOM, Education Incentives and Counseling Branch, dated 9 August 2001.  The letter was written in regards to his DD Form 2475, which was recently received from the PHEAA Student Loan Servicing Center.  The letter stated that individuals enlisting with the LRP as part of their contract must meet certain standards.  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 the 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 would be in violation of the law governing this program.  There are no exceptions.  The applicant has a loan, from PHEAA/Student Loan Servicing Center, amounting to $9,000.00, which was made through the Alternative Loan Program and is not eligible under the LRP.  The applicant had two Supplemental Loans for Students (SLS) loans that qualified for repayment and that were repaid in the amount of $22,313.36.

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 
acquired student loans prior to his entry on active duty.  The evidence of record also notes that the applicant signed his addendum to his MGIB Enlistment Contract attesting to the fact that he was disenrolled from the MGIB.

2.  The Board notes that Chief, Education Incentives Counseling Branch, received a copy of the applicant’s DD Form 2475 from the PHEAA Student Loan Servicing Center.  However, upon receipt of his DD Form 2475, the Chief, Education Incentives Counseling Branch, determined that the applicant’s loan did not qualify for repayment under the LRP.  The Board also notes that the applicant’s DD Form 2475 indicated that the applicant’s loan was a loan made through Educational Alternative Student Loan Program, which was 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 loan.

3.  The Board notes the applicant’s contention that the length of his enlistment term should be adjusted or an alternative solution be considered that is fair and just.  However, the length of his enlistment term is not subject to change based on the evidence of record.

4.  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.

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

__mp__  ___rd___  ___ea___  DENY APPLICATION

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

INDEX

CASE ID	AR2001064234	
SUFFIX		
RECON		
DATE BOARDED	20020411	
TYPE OF DISCHARGE	(HD, GD, UOTHC, UD, BCD, DD, UNCHAR)	
DATE OF DISCHARGE	Active duty	
DISCHARGE AUTHORITY	AR .  .  .  .  .  	
DISCHARGE REASON		
BOARD DECISION	DENY	
REVIEW AUTHORITY		
ISSUES         1.  1026		
2.		
3.		
4.		
5.		
6.