MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:   

	BOARD DATE:           20 May 2003        
	DOCKET NUMBER:   AR2003084907

	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	
	Mrs. Nancy L. Amos		Analyst	

  The following members, a quorum, were present:

	Mr. Melvin H. Meyer		Chairperson	
	Ms. Deborah S. Jacobs		Member	
	Mr. Jose A. Martinez		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:  Payment of three of his student loans in the approximate amount of $18,000.00.

APPLICANT STATES:  That the applications for these loans say "education loan" and "promissory note" and he is receiving student loan interest statements.  He does not understand how the Army can say these are not student loans.  His loans were approved by his recruiters and Military Entrance Processing Station personnel before he left for basic training.

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

He entered the Delayed Enlistment Program on 6 July 2001.  His DA Form  3286-66 (Statement of Understanding, United States Army Incentive Enlistment Program) shows that he enlisted for the Loan Repayment Program (LRP) for an amount not to exceed $65,000.  On this form, he acknowledged that under the LRP the Government would repay a designated portion of any loan he incurred that was made, insured or guaranteed under Part B of the Higher Education Act of 1965 or any loan under Part E of such act after 1 October 1975 and before he enlisted into the Regular Army. 

The applicant's DA Form 3286-59 (Statement for Enlistment, United States Army Enlistment Program, U. S. Army Delayed Enlistment Program) shows that he presented to enlistment officials, among other documents, "promissory notes."

The applicant enlisted in the Regular Army on 17 January 2002.  Prior to entry on active duty he had obtained a Wells Fargo Collegiate Loan in the amount of $3,000.00 (loan holder Wells Fargo Education Financial Services); a Wells Fargo Education Connection Loan (loan holder Servus Financial) in the amount of about $5,170.00; and a Wells Fargo Education Connection Loan (loan holder Servus Financial) in the amount of about $10,135.00.  

The applicant apparently had obtained another loan or two (the U. S. Total Army Personnel Command (PERSCOM), Education Incentives and Counseling Branch stated that he had a consolidated loan) which were eligible for repayment under the LRP in the amount of $33,822.06.

By letters dated 19 November 2002 and 10 December 2002, respectively, PERSCOM notified the applicant that information received from Servus Financial and Wells Fargo Education Financial Services indicated that his loans from these institutions, were not made, insured, or guaranteed under Title IV Part B, D, or E of the Higher Education Act.  He was informed these loans therefore did not qualify for repayment under the LRP.

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 or E of the Higher Education Act of 1965.  Before entering active duty, the loan must not be in default.  The borrower is responsible for obtaining a deferment/forbearance with the loan holder and the loan must remain in good standing throughout the repayment process.  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.  

The Government will not make any payments to the soldier or reimburse a soldier if he or she pays off a student loan.  The Government will only pay the lending institution.

Army Regulation 635-200 sets forth the basic authority for the separation of enlisted personnel from the Regular Army.  Chapter 7, section IV discusses defective or unfulfilled enlistment or reenlistment agreements.  It states that an enlisted soldier will be discharged when a defective enlistment or reenlistment agreement exists under three circumstances.  One circumstance is when a material misrepresentation is made by recruiting or retention personnel on which the soldier reasonably relied and thereby was induced to enlist or reenlist with a commitment for which the soldier was not qualified.  An unfulfilled enlistment commitment exists when the soldier received a written enlistment commitment from recruiting personnel for which the soldier was qualified but which cannot be fulfilled by the Army and the soldier did not knowingly take part in the creation of the unfulfilled enlistment commitment.

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 evidence of record shows that the applicant enlisted for the LRP incentive.  He had obtained several student loans prior to his entry on active duty and they were not in default prior to his entry on active duty.  

2.  PERSCOM did not dispute the applicant's contention that the loans in question were "student loans."  PERSCOM noted only that several of his loans did not fall under the requirements of Title IV, Part B or E of the Higher Education Act of 1965 to qualify for repayment under the LRP. 
3.  The applicant states that he showed his promissory notes to recruiting officials prior to his enlistment and they were "approved."  The only evidence available which shows he provided promissory notes to recruiting officials is his DA Form 3286-59, which shows that "promissory notes" were provided.  No detailed information as to which promissory notes were provided is given.  He provides no evidence, such as a sworn statement or affidavit from his recruiter and/or guidance counselor or other official, providing the details behind his contention that all his loans were approved and thereby substantiating his contention.  The Board concludes that it would not be equitable to grant the relief requested in the absence of such substantiating evidence.

4.  The applicant also has the option of requesting discharge due to a defective or unfulfilled enlistment agreement.

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

__mhm___  __dsj___  __jam___  DENY APPLICATION

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

INDEX

CASE ID	AR2003084907	
SUFFIX		
RECON		
DATE BOARDED	20030520	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	DENY	
REVIEW AUTHORITY	Mr. Chun	
ISSUES         1.	112.12	
2.		
3.		
4.		
5.		
6.