MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:   

	BOARD DATE:           12 September 2002                   
	DOCKET NUMBER:   AR2002071360

	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. John N. Slone 		Chairperson	
	Mr. Donald P. Hupman  		Member	
	Mr. William D. Powers 		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 a student loan under the Loan Repayment Program (LRP).  

APPLICANT STATES:  That his recruiter told him all of his student loans would be paid in full in return for agreeing to a 6-year active duty contract.  He contends that at the Military Entrance Processing Station they counted up the combined student loan promissory notes and it totaled almost $30,000.  He also contends that they told him all of his loans were within regulations and that he would have access to as much as $65,000 if needed.  In support of his application, he submits a letter of explanation, dated 2 April 2002; a letter in support of his claim, dated 2 April 2002, from his parents; a letter, dated 2 April 2002, requesting temporary hardship forbearance; a letter, dated 5 March 2002, from the Chief, Education Incentives and Counseling Branch; DD Form 2475 (DOD Education Loan Repayment Program (LRP) Annual Application), dated 11 February 2002; an Initial Truth-in-Lending Disclosure, dated 3 November 1999; and copies of his enlistment contract.

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

In 1999, the applicant applied for and received a student loan from the AFSA Data Corporation 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.

The applicant’s DA Form 3286-59 (Statement for Enlistment) shows that he enlisted for the U.S. Army Incentive Enlistment Program (Cash Bonus ($11,000) and LRP).  The applicant enlisted in the Regular Army on 17 January 2001 for a period of 6 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-3.

The applicant’s DA Form 3286-66, Section 4, item 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.”

The applicant provided a letter, dated 6 March 2002, from the Chief, Education Incentives and Counseling Branch, U.S. Total Army Personnel Command.  This letter states “Individuals enlisting with LRP as a part of their enlistment contract must meet certain eligibility criteria.  Part of the eligibility criteria is to have loans that qualify under the LRP.  Loans eligible for repayment under the LRP are Stafford, Perkins, Parent Loans for Undergraduate Students, Supplemental loans, or any loan made insured or guaranteed under the Higher Education Act, Title IV, Part B, D, or E.  In addition, Public Law 99-145, Section 671(a)(1) confirms loans eligible for repayment must be made, insured or guaranteed prior to entry on active duty.  Payment toward loans that do not qualify under the LRP would be in violation of the law governing this program.  There are no exceptions to the law.”  This letter indicates that the applicant’s student loan does not qualify for repayment under the LRP.  This letter further points out that the applicant’s student loan through the AFSA Data Corporation was not made, insured or guaranteed under Title IV Part B, D, or E of the Higher Education Act.  

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.  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 Board considered the applicant’s contention that his recruiter told him all of his student loans would be paid in full in return for agreeing to a 6-year active duty contract.  However, the applicant has provided no evidence to support this contention.   

2.  The Board also considered the applicant’s DA Form 3286-66, Section 4, item a which 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.”

3.  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.  Therefore, payment cannot be made toward this student loan.

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

JNS____  DPH_____  WDP____  DENY APPLICATION

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

INDEX

CASE ID	AR2002071360	
SUFFIX		
RECON		
DATE BOARDED	20020912	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	(DENY)	
REVIEW AUTHORITY		
ISSUES         1.	112.1200	
2.		
3.		
4.		
5.		
6.