MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:     

	BOARD DATE:           26 September 2002                   
	DOCKET NUMBER:   AR2002073983

	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. Raymond V. O'Connor, Jr.		Chairperson	
	Mr. Raymond J. Wagner		Member	
	Ms. Karen Y. Fletcher		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 her signature loans be paid under her Loan Repayment Program (LRP) addendum.

APPLICANT STATES:  That the USAREC Addendum to her DD Form 1966 does not say anything about the LRP being limited to student loans that were made or insured under the Higher Education Act of 1965.  She was not told by her recruiter that any of her student loans wouldn’t qualify under the LRP.

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

She enlisted in the Regular Army on 11 July 2001 for four years in pay grade 
E-4.  In conjunction with her enlistment she completed an $8,000.00 cash bonus addendum and an LRP addendum.  In the applicant’s DA Form 3286-66, Statement of Understanding, United States Army Incentive Enlistment Program, Item 4a, it is stated “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.”

On 22 February 2002, the Total Army Personnel Command (PERSCOM) notified the applicant of the procedures to take to have her lending institutions submit her student loans to the Army for payment.

At the time the applicant submitted her request, she was serving on active duty in pay grade E-4.
 
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.  Contrary to the applicant’s contention, she was informed that only those loans made or insured under the Higher Education Act of 1965 would be payable under the LRP.  The applicant signed the form explaining that limitation, indicating that she fully understood the conditions of her cash bonus and the LRP.

2.  Since the applicant acknowledged that she understood that only those loans which were made or insured under the Higher Education Act of 1965 were payable under the LRP, there is no basis for granting her request.

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

___rjw___  ___kyf___  ___rvo __  DENY APPLICATION

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

INDEX

CASE ID	AR2002073983	
SUFFIX		
RECON	YYYYMMDD	
DATE BOARDED	20020926	
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.