MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:  

	BOARD DATE:  31 July 2003
	DOCKET NUMBER:  AR2003087303

	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	
	Ms. Joyce A. Wright		Analyst	

  The following members, a quorum, were present:

	Ms. Gail J. Wire		Chairperson	
	Mr. Robert Duecaster		Member	
	Ms. Karen A. Heinz		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, that the Army repay his student loan.

APPLICANT STATES:  That when he signed his contract, he was led to believe that each year 1/3 of his loans would be paid (excluding interest).  However, after his first year in service, he discovered that his American Education Loan would not be paid.  He now feels that this is unjust and misleading, possibly a breach of contract.  In support of his application, he submits a copy of a promissory note and several documents pertaining to his student loan.

EVIDENCE OF RECORD:  The applicant's military records show he enlisted in the Regular Army on 5 March 2002, as a light weapons infantryman (11X) for a period of 4 years.  He continues to serve and is presently assigned to Fort Stewart, Georgia.

The applicant's DD Form 1966/1 (Record of Military Processing-Armed Forces of the United States) shows that he enlisted for a period of 4 years.

The applicant’s DA Form 3286-66, item 1(a) shows that the applicant enlisted 
for the Loan Repayment Program (LRP).

Item 4(a) states “I understand that under this 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 1965 (Guaranteed Student Loan) or any loan under Part E of such act (National Direct Student Loan) after 1 October 1975 and before I enlist into the Regular Army.  

Item 4(b) states "Enlistment for the LRP ensures me, provided I meet and maintain the prescribed prerequisites, that the portion or amount of loan that may be repaid is 33 1/3 percent or $1,500, whichever is greater, of the unpaid principal balance for each year of service completed."

The applicant provided a copy of a letter from PERSCOM, Education Incentives and Counseling Branch, dated 23 January 2003.  The letter was written in regards to his DD Form 2475 (DOD Education LRP Annual Application), which was recently received from the American Education Services (AES).  The letter stated that individuals enlisting with the LRP as part of their contract must meet certain standards.  Part of the eligibility criteria is to have loans that 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.  In addition, 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.  

The letter further stated that, based on information provided by AES, it was determined that his loans did not qualify for repayment under the LRP.  As indicated on his DD Form 2475, his loans were GATE/Private Loans, which were not made, insured or guaranteed under Title IV Part B, D, or E of the Higher Education Act.  If the applicant felt that he was not properly counseled or an error or injustice has occurred, he may apply to this Board for relief.

The applicant has been approved for repayment of two authorized student loans. One is a Perkins Loan with a remaining unpaid principal balance of $3,450 and the other is a Consolidated Loan for $11,911.09.  To date $5,120.36 has been paid by the Army.

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.  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.  Public Law 99-145, Section 671(a)(1) precludes the authorization of payments toward interest or the reimbursement of payments made.  There are no exceptions to the law.

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 under the LRP and 
acquired student loans prior to his entry on active duty.  

2.  The Board notes that the Chief, Education Incentives Counseling Branch received a copy of the applicant’s DD Form 2475 from the AES.  However, upon receipt of his DD Form 2475, the Chief, Education Incentives Counseling Branch, determined that the applicant’s loan did not qualify for repayment under the LRP. The Board also notes that the applicant’s DD Form 2475 indicated that the applicant’s loan were GATE/Private loans which were not made or, insured or guaranteed under Title IV Part B, D, or E of the her Education Act.  Therefore, the Army is not authorized to repay the applicant’s student loan.

3.  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 this requirement.

4.  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

__gw___  __rd___  ___kh___  DENY APPLICATION

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

INDEX

CASE ID	AR2003087303	
SUFFIX		
RECON		
DATE BOARDED	20030731	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	DENY	
REVIEW AUTHORITY		
ISSUES         1.	1026	
2.		
3.		
4.		
5.		
6.