MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:   

	BOARD DATE:            29 May 2003       
	DOCKET NUMBER:   AR2003087296

	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. Luther L. Santiful		Chairperson	
	Mr. Lester Echols		Member	
	Mr. Frank C. Jones		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 effect, payment of her Rutgers University Institutional Loan in the approximate amount of $1,000.00.

APPLICANT STATES:  That her recruiter told her all her educational loans would be paid under the Loan Repayment Program (LRP).  She was informed in 2001 that her Rutgers University Institutional Loan would not be paid.  She provides her enlistment contract as supporting evidence.

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

She entered the Delayed Entry Program on 19 May 2000.  Her DA Form      3286-66, Statement of Understanding, United States Army Incentive Enlistment Program, shows that she enlisted for the LRP up to a maximum repayment of $65,000.  On this form, she acknowledged that under the LRP the Government would repay a designated portion of any loan she 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 she enlisted into the Regular Army.  The recruiter did not identify on any of her enlistment documents what student loans she had.

The applicant enlisted in the Regular Army on 19 June 2000 for 4 years.  

On 17 December 2001, the U. S. Total Army Personnel Command (PERSCOM) notified the applicant that her Rutgers University Institutional Loan was not made, insured, or guaranteed under Title IV Part B, D, or E of the Higher Education Act and so did not qualify for repayment under the LRP.

On 23 May 2003, PERSCOM informed the Board analyst that the applicant had applied for repayment of three loans.  Her Stafford Loan in the amount of $12,228.30 qualified for repayment.  Her Perkins Loan in the amount of $5,459.96 qualified for repayment.  Her Rutgers Institutional Loan in the amount of $1,065.95 did not qualify for repayment.

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, or William D. Ford Loan.  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.

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 on 19 May 2000.  She had obtained several student loans prior to her entry on active duty and they were not in default prior to her entry on active duty.  It appears that all her loans except one Rutgers University Institutional Loan meet the requirements for repayment under the Higher Education Act and the LRP.  

2.  The applicant states that her recruiter informed her that all her loans qualified for repayment under the LRP; however, she provides no evidence, such as a sworn statement or affidavit from her recruiter and/or guidance counselor, substantiating her contention.  The Board believes that it would not be equitable to grant the relief requested in the absence of such substantiating evidence.

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

__lls___  __le____  _fcj      ____  DENY APPLICATION

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

INDEX

CASE ID	AR2003087296	
SUFFIX		
RECON		
DATE BOARDED	20030529	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	DENY	
REVIEW AUTHORITY		
ISSUES         1.	112.12	
2.		
3.		
4.		
5.		
6.