RECORD OF PROCEEDINGS

	IN THE CASE OF:  

	BOARD DATE:           9 December 2003                   
	DOCKET NUMBER:   AR2003084393

	I certify that hereinafter is recorded the true and complete record of the proceedings of the Army Board for Correction of Military Records in the case of the above-named individual.  

	Mr. Carl W. S. Chun		Director	
	Ms. Rosa M. Chandler		Analyst	

  The following members, a quorum, were present:

	Mr. Mark D. Manning		Chairperson	
	Mr. Raymond J. Wagner		Member	
	Ms. Eloise C. Prendergast		Member	

	The applicant and counsel if any, did not appear before the Board.

	The Board considered the following evidence:

	Exhibit A - Application for correction of military records.

	Exhibit B - Military Personnel Records (including advisory opinion, if any).

THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE:  

1.  The applicant requests, in essence, that his student loan be paid in accordance with his enlistment option for the Army Student Loan Repayment Program (LRP). 

2.  The applicant states that he was not informed that only specific types of loans qualified for payment under the LRP.  In fact, his recruiter led him to believe that all of his loans qualified for payment under the LRP.  He was not informed that his "Partnership Loan" did not qualify for payment under the LRP until he had completed more than 15 months of military service.  He states that his recruiter was provided the "Partnership Loan" promissory note at the time of enlistment and that his DD Form 1966/3 (Record of Military Processing-Armed Forces of the United States) shows the LRP as an included option in his enlistment contract.

3.  The applicant provides in support of his request a copy of his enlistment contract; a copy of a "Partnership Loan" application promissory note, dated 2 May 2001; a copy of a Department of Defense Educational LRP Annual Application, dated 20 September 2002; and a letter from the US Total Army Personnel Command (PERSCOM), dated 30 October 2002, that states his "Partnership Loan" does not qualify for payment under the LRP. 

CONSIDERATION OF EVIDENCE: 

1. On 16 October 2000, the applicant enlisted in the Delayed Entry Program (DEP).  His DA Form 3286-66 (Statement of Understanding-US Army Incentive Enlistment Program) shows he enlisted for Option 9B, the US Army Unit/Command/Area Enlistment Program.  His options included a US Army Cash Bonus/Airborne Bonus in the amount of $16,000, and the LRP. The applicant authenticated his DA Form 3286-66 indicating that he understood the provisions of the LRP.

2.  On 24 May 2001, the applicant enlisted in the Regular Army (RA) for a period of 4 years. Upon enlistment, he authenticated his DD Form 1966/3 to show that no changes were required concerning his enlistment options.  Administrative changes were made concerning his address/home of record and his place of birth.

3.  When his application was submitted to this Board, the applicant was serving in the rank of specialist, pay grade E-4, at Fort Lewis, Washington.

4.  In connection with this application, a PERSCOM advisory opinion (COPY ATTACHED) stated, in essence, that as previously indicated in their 30 October 2002 correspondence provided to the applicant, terms outlined in the enlistment contract -- Statement of Understanding US Army Incentive Enlistment Program, DA Form 3286-66, Section 4, item a -- state, "I understand that under the LRP 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) after 1 October 1975 and before I enlist into the Regular Army."  In addition, Public Law 99-145, Section 671(a)(1) confirms loans eligible for repayment must be made under Title IV, Part B, D, or E of the Higher Education Act of 1965.  

5.  Additionally, PERSCOM opined that based on the documentation provided, the "Partnership Loan" does not qualify for payment under the LRP.  The loan is not made, insured, or guaranteed under Title IV, Part B, D, or E of the Higher Education Act of 1965.  

6.  PERSCOM determined the applicant does have loans that qualify for payment under the LRP.  The total remaining original unpaid principal verified by Iowa Student Loan Liquidity Corporation (Stafford Loans) equals $13,903.22 and Loaras College (Perkins Loan) equals $1,820.00.  Appropriate payments are being authorized toward these qualifying loans.  The unpaid principal of the non-qualifying "Partnership Loan" equals $8,980.00.  PERSCOM recommended disapproval of the applicant's request for repayment of this loan and added that if the Board grants him any compensation that the payment be sent directly to him.

7.  On 28 October 2003, the above advisory opinion was referred to the applicant for comment or rebuttal; he failed to respond.

8.  Army Regulation (AR) 601-210 (Regular Army and Army Reserve Enlistment Program) prescribes eligibility criteria governing the enlistment of persons, with or without prior service, into the RA and the US Army Reserve.

9.  Table 9-4 of AR 601-210 contains guidance on enlistment option program 9B (Bonus/Army College Fund/Loan Repayment Program).  It contains specific guidance pertaining to the LRP and indicates that the Government will repay a designated portion of any loan 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 enlistment into the RA."

10.  Table 9-4 also provides program-processing procedures that require Army Guidance Counselors to complete required entries on the DD Form 1966 pertaining to an applicant’s eligibility for the LRP.  Part of the mandatory processing procedures includes verification that the applicant has qualifying loans if enlisting for the LRP, and that the applicant be advised of any loan that is not eligible.  The applicant in the Remarks Section of the DD Form 1966 series must acknowledge these conditions.

DISCUSSION AND CONCLUSIONS:

1.  The applicant enlisted for the LRP and one of his loans (the Partnership Loan) did not qualify for payment.  

2.  The applicant's DA Form 3286-66 clearly specifies that loans payable under the LRP must be made, insured or guaranteed by one of two loan programs under the Higher Education Act prior to enlistment in the RA.  The applicant acknowledged in writing that he understood these provisions.  He has provided no evidence to the contrary.

3.  The applicant has not shown that the US Army recruiter specifically misled him regarding the eligibility of the "Partnership Loan."  Regularity is presumed in the processing of his enlistment contract.

4.  The PERSCOM advisory opinion recommends that the applicant's request be denied.  The applicant did not see fit to reclama the PERSCOM advisory opinion.

BOARD VOTE:

________  ________  ________  GRANT RELIEF 

________  ________  ________  GRANT FORMAL HEARING

__mdm___  __rjw___  __ecp___  DENY APPLICATION

BOARD DETERMINATION/RECOMMENDATION:

The evidence presented does not demonstrate the existence of a probable error or injustice.  Therefore, the Board determined that the overall merits of this case are insufficient as a basis for correction of the records of the individual concerned.

			Mark D. Manning
		______________________
		        CHAIRPERSON

INDEX

CASE ID	AR2003084393	
SUFFIX		
RECON		
DATE BOARDED	20031209	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	(DENY)	
REVIEW AUTHORITY		
ISSUES         1.	128.1000	
2.		
3.		
4.		
5.		
6.