MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:      

	BOARD DATE:            24 September 2002                  
	DOCKET NUMBER:    AR2002074362

	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. Arthur A. Omartian		Chairperson	
	Mr. Kenneth W. Lapin		Member	
	Mr. Donald P. Hupman		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 two applications, that his signature loans and his collegiate loans be paid under the Loan Repayment Program (LRP).

APPLICANT STATES:  No time or effort was taken by the personnel processing his enlistment to tell him which of his loans would and wouldn’t be paid under the LRP.  The counselor at the Military Entrance Processing Station gave him an “O.K.” to all of his promissory notes, indicating that they all would be paid under the LRP.

In support of his request the applicant submits copies of the signature loans and collegiate loans which were not paid under the LRP.

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

He enlisted in the Regular Army on 12 July 2001 for 4 years in pay grade E-4.  In conjunction with his enlistment he executed addenda for a $4,000.00 enlistment bonus and the LRP.  

On 8 May 2002, the U.S. Total Army Personnel Command (PERSCOM) informed the applicant that his signature loans weren't payable under the LRP because they were not made or insured under the Higher Education Act of 1965.  On 29 May 2002, the PERSCOM informed the applicant that his collegiate loans were not payable under the LRP for the same reason.

The LRP is an educational enlistment incentive which provides for payment of 33 1/3 percent or $1,500.00 of the unpaid principal of eligible student loans, whichever is greater, 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 signature and collegiate loans are not payable under the LRP in accordance with law and regulation because they were not made or insured under the Higher Education Act of 1965.

2.  The applicant’s statement to the Board is confusing.  He states that he wasn’t told which of his loans were payable and which loans weren’t payable.  But then he states that he was told that all his loans were payable.  Nonetheless, under either scenario, he has submitted no evidence to substantiate his allegations.

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

____kwl _  ___dph__  ___aao__  DENY APPLICATION

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

INDEX

CASE ID	AR2002074362	
SUFFIX		
RECON	YYYYMMDD	
DATE BOARDED	20020924	
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.	128.05	
2.		
3.		
4.		
5.		
6.