RECORD OF PROCEEDINGS

	IN THE CASE OF:  

	BOARD DATE:           22 January 2004                   
	DOCKET NUMBER:   AR2003087289

	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:

	Ms. Joann H. Langston		Chairperson	
	Mr. Arthur A. Omartian		Member	
	Mr. Ronald J. Weaver		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, in essence, that when he enlisted he understood that one third of his student loan would be paid each year in accordance with his enlistment contract.  During the enlistment process, he was advised that he was not eligible to participate in the LRP.  He explained to recruitment personnel that he wanted to get out of debt and that he would not join the Army if he could not enlist for the LRP.  At this point, he called his parents and informed them of what he had been advised.  When he returned, recruitment personnel stated they were working on resolving the problem.  An hour later, he was promised the problem had been resolved and he enlisted with the LRP as an option.  His enlistment contract shows that he enlisted with the understanding that his loan in the amount of $29,000 would be paid in accordance with the LRP.

3.  The applicant provides in support of his request DA Form 3286-59 (Statement for Enlistment-United States Army Enlistment Program, DA Form 3286-66/67 (Statement of Understanding-United States Army Incentive Program), a DA Form 2366 (Montgomery GI Bill Act of 1984) and a letter from the Education Incentives Branch, United States Total Army Personnel Command (PERSCOM), dated 12 February 2003.

CONSIDERATION OF EVIDENCE: 

1.  On 18 April 2002, the applicant enlisted in the Delayed Entry Program (DEP). His DA Form 3286-59 shows that he enlisted for Option 9B, the US Army Unit/Command/Area Enlistment Program (Europe), Option 9C, the US Army Incentive Enlistment Program, LRP and a US Army Cash Bonus in the amount of $4,000.  His report date was 23 May 2000.

2.  On the same date, the applicant authenticated his DA Form 3286-66 indicating he understood the provisions of the LRP.  

3.  On 23 May 2002, the applicant was separated from the DEP and he enlisted in the Regular Army (RA) for a period of 3 years and training in military occupational specialty (MOS) 13P (Multiple Launch Rocket System).  Upon enlistment, he authenticated his DD Form 1966/3 to show that that his enlistment options remained unchanged, all but his enlistment date which changed from 23 May to 22 May 2002.  

4.  When the applicant's application was submitted to this Board, he was and assigned to Europe and serving in the rank of private, pay grade E-2.

5.  The letter the applicant provided from PERSCOM, dated 12 February 2003 shows he was advised that individuals enlisting with the LRP, as a part of their enlistment contract must meet certain eligibility criteria.  The loans must qualify under the LRP.  Loans eligible for repayment under the LRP are Stafford, Perkins, Parent Loans for undergraduate Students, Supplemental loans, or any loan made insured or guaranteed under the Higher Education Act, Title IV, Part B, D or E.  He was also advised that loans eligible for repayment must be made, insured or guaranteed prior to entry on active duty.  Payment toward loans that do not qualify under the LRP would be in violation of the law governing this program.  There are no exceptions to the law.  He was informed that based on information provided by his lender (SLM Financial), his loan did not qualify for repayment under the LRP, because the loan was a private credit loan, which was not made, insured or guaranteed under Title IV Part B, D or E of the Higher Education Act.  The applicant was also informed that he should apply to the Army Board for Correction of Military Records, if he believed that he was improperly counseled or if an error or injustice occurred.

6.  In connection with this application, a PERSCOM advisory opinion (COPY ATTACHED) states, in essence, that terms outlined in the applicant's 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.  

7.  Additionally, PERSCOM opined that based on the documentation provided by the applicant's lender, the applicant's 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.  The applicant has no other loans.  The total outstanding balance on the non-qualifying private credit loan is $29,170.00.  PERSCOM recommends disapproval of the applicant's request for repayment of this loan and added that if the Board grants the applicant any compensation that the payment be sent directly to him.

8.  On 12 November 2003, the above advisory opinion was referred to the applicant for comment or rebuttal; he failed to respond.

9.  Army Regulation 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.  Table 9-4 of 
Army Regulation 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."

DISCUSSION AND CONCLUSIONS:

1.  The applicant enlisted for the LRP and his loan is a private credit loan that does not qualify for payment under the LRP.  

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 private credit 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

__jhl___  __aao___  __rjw___  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.

			Joann Langston
		______________________
		        CHAIRPERSON

INDEX

CASE ID	AR2003087289	
SUFFIX		
RECON		
DATE BOARDED	20040122	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	(DENY)	
REVIEW AUTHORITY		
ISSUES         1.	128.1000	
2.		
3.		
4.		
5.		
6.		

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.