MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:      

	BOARD DATE:            07 AUGUST 2003   
	DOCKET NUMBER:   AR2003086145

	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. Kenenth H. Aucock		Analyst	

  The following members, a quorum, were present:

	Mr. Arthur A. Omartian		Chairperson	
	Mr. Thomas B. Redfern III		Member	
	Ms. Mae M. Bullock		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 the remainder of the principal of his student loans be paid under the provisions of the loan repayment program (LRP) as was promised.   

APPLICANT STATES:  That exempting certain Sallie Mae and CitiAssist student loans from payment under the LRP is wrong.

He graduated from George Washington University and enlisted in the Army (instead of opting to become an officer) with the understanding that his student loans would be paid.  His recruiter reviewed his promissory notes and assured him that all his loans would be taken care of as soon as he started basic training. His counselor at the Military Entrance Processing Station (MEPS) also assured him that his loans would be paid.  He enlisted for four years as a motor vehicle operator based on the understanding that his student loans would be paid within three years after his enlistment.  Both the MEPS counselor and his assistant so assured him.  He would not have enlisted if he thought otherwise.  He is now stuck with half of the bills but not the income to pay it.  

The applicant includes a matrix showing how the loan repayment program influenced his decision to enlist in the Army, vice opt to become an officer.   

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

The applicant enlisted in the Army Reserve Delayed Entry Program for eight years in the grade E-4 on 19 July 2001.  He was discharged from that program upon his enlistment in the Regular Army for four years on 16 August 2001.  His Record of Military Processing (DD Form 1966/1) shows that he enlisted for the Loan Repayment Program (Code B, in position 1 of items 17e and 18k of that form).

USAREC (United States Army Recruiting Command) Form 1150-R-E, Addendum to DD Form 1966 Series, shows that he enlisted for the Hi Grad LRP incentive.  He placed his initials by the block, "I understand that under the Army's Student Loan Repayment Program, the Army will not repay student loans in excess of $65,000 regardless of the amount of my student loans. … I understand that I must bring copies of ALL my student-loan promissory notes when I report to the MEPS for my active duty ship date."  He and his guidance counselor both signed the form on 23 July 2001. 

DA Form 3286-59 (Statement for Enlistment) also shows that he enlisted for the cash bonus and loan repayment program.

The applicant completed another form (DA Form 3286-66) showing that he enlisted for the cash bonus, LRP, and Hi Grad Bonus. The cash bonus was $13,000.  He stated on that form that he acknowledged and understood that he was enlisted for the Loan Repayment Program.  That form contained a number of statements, to include, "If the incentive … is for the … LOAN REPAYMENT PROGRAM (LRP), I understand that I must DISENROLL from the GI Bill in order to qualify for the program.…If I fail to complete the disenrollment portion of the DD Form 2366, I will not be eligible for the LRP and will become automatically enrolled in the    GI Bill," and, "I understand that under the 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 1975 (Guaranteed Student Loan) or any loan under Part E of such act … after             1 October 1975 and before I enlist into the Regular Army."  He and his guidance counselor signed that form.

On 19 July 2001 the applicant completed DD Form 2366, stating that he did not desire to participate in the MGIB.  Both he and his guidance counselor signed that form.  

On 24 July 2002 the Total Army Personnel Command (PERSCOM) informed the applicant that his Sallie Mae loans did not qualify for repayment under the LRP, in that they were signature loans, which were not made, insured or guaranteed under Title IV, Part B, D, or E of the Higher Education Act.  That command also informed him that loans eligible for repayment had to be made, insured or guaranteed prior to entry on active duty, and that payment toward loans that did not qualify under the LRP would be in violation of the law governing the program There were no exceptions to the law.  Copies of his attached DD Forms 2475 (DOD Educational Loan Repayment Program (LRP) Annual Application), application/promissory note, and loan application show that the applicant's loans were signature loans, and were not eligible for the loan repayment program.  On 13 June 2002 Citibank informed the applicant that his CitiAssist Undergraduate loan was not eligible for Department of Defense reimbursement.

With his request the applicant submits a summary of his financial aid award package for the four academic years from 1997 to 2001. 

The LRP is an educational enlistment incentive, which provides for payment of a percentage of the unpaid principal of eligible student loans for each year of active duty a soldier completes.  Title 10, United States 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.

The MGIB, as outlined in Title 38, United States Code, chapter 30, section 1411(b), provides for soldiers who entered the service after 30 June l985, to be automatically enrolled into the MGIB and to contribute $1,200.00 during their first 12 months service, which is nonrefundable.  After completion of their service obligation, he or she is entitled to receive up to $300.00 per month educational benefits for 36 months.  The program is administered by the Department of Veterans Affairs (VA).

Army Regulation 601-210, chapter 6, specifies what forms are to be completed when a person enlists in the Army.  Those forms include the DA Form 3286 and the DA Form 1966 which show which options have been selected by the person enlisting.  Only the options selected on that form are considered valid and will be honored by the Government.

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.  Although the Board does acknowledge that the applicant’s enlistment contract indicates that his enlistment incentives included the LRP incentive, the applicant failed to acknowledge that his enlistment contract further clarified the provisions under which a student loan could be repaid.  The Board notes that the applicant authenticated that portion of his enlistment contract by his signature on the        DA Form 3286-66.  The Board also notes that the applicant acknowledges that he was granted a cash bonus of $13, 000 as a result of his enlistment, and that the applicant has numerous loans that will be paid by the Army.   

2.  While it is unfortunate that the applicant may not have understood that all his loans were not payable under the LRP, there is no evidence of malfeasance on the part of his recruiter or counselors, as the applicant has implied.  Nor is there any evidence of any error or injustice.  Consequently, his request that those loans be repaid is not granted.

3.  The applicant has submitted neither probative evidence nor a convincing argument in support of his request.   

4.  In order to justify correction of a military record the applicant must show to the satisfaction of the Board, or it must otherwise satisfactorily appear, that the record is in error or unjust.  The applicant has failed to submit evidence that would satisfy that requirement.

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

__AAO       ___TBR_  __MMB__  DENY APPLICATION

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

INDEX

CASE ID	AR2003086145	
SUFFIX		
RECON	YYYYMMDD	
DATE BOARDED	20030807	
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.	103.00	
2.		
3.		
4.		
5.		
6.