MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:    

	BOARD DATE:           12 September 2002                   
	DOCKET NUMBER:   AR2002073843

	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	
	Mr. Edmund P. Mercanti		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:  That his loans be paid under his Loan Repayment Program enlistment incentive.

APPLICANT STATES:  In effect, that nobody told him his loans weren’t payable under the LRP.  The deferment on his loans is now coming to an end and he is financially unprepared to make the payments.

In support of his request the applicant submits a letter from the Total Army Personnel Command informing him that his Alternative Loans do not qualify for payment under the LRP since they weren't made or insured under the Higher Education Act of 1965.  The applicant also submits copies of his Alternative Loan promissory notes.

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

He enlisted in the Regular Army on 1 June 2001 for 4 years.  In conjunction with his enlistment he executed addenda for the LRP and a $15,000.00 cash bonus.  In the LRP addendum he acknowledged by his signature that he understood that only those loans that were made or insured under the Higher Education Act of 1965 would be paid under the LRP.

The LRP is an educational enlistment incentive which provides for payment of 33 1/3 percent or $1,500.00, whichever is greater, of the unpaid principal of eligible student loans for each year of active duty a soldier completes.

Title 10, U.S. Code, section 2171, limits loans that are eligible for repayment under the LRP to those made, insured, or guaranteed under the Higher Education Act of 1965.

DISCUSSION:  Considering all the evidence, allegations, and information presented by the applicant, together with the evidence of record and applicable law and regulations, it is concluded:

1.  The applicant’s Alternative Loans do not qualify for payment under the LRP since they weren't made or insured under the Higher Education Act of 1965.

2.  While the applicant has stated that nobody told him his loans were not payable under the LRP, there is no indication that he ever asked anyone whether they were payable or not.  Since the applicant acknowledged that he understood 

that only loans made or insured under the Higher Education Act of 1965 would be payable under the LRP, 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____  ___wdp__  ___dph__  DENY APPLICATION

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

INDEX

CASE ID	AR2002073843	
SUFFIX		
RECON	YYYYMMDD	
DATE BOARDED	20020912	
TYPE OF DISCHARGE	(HD, GD, UOTHC, UD, BCD, DD, UNCHAR)	
DATE OF DISCHARGE	YYYYMMDD	
DISCHARGE AUTHORITY	AR .  .  .  .  .  	
DISCHARGE REASON		
BOARD DECISION	DENY	
REVIEW AUTHORITY		
ISSUES         1.	128.00	
2.		
3.		
4.		
5.		
6.