RECORD OF PROCEEDINGS

	IN THE CASE OF:  

	BOARD DATE:           22 January 2004                   
	DOCKET NUMBER:   AR2003087992

	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 effect, that all of her education loans be declared qualifying for the Army Student Loan Repayment Program (LRP).

2.  The applicant states that she had a Stafford Loan and an Alternative Loan.  The Stafford Loan was sold to the Student Loan Marketing Association (Sallie Mae) for consolidation purposes, and the incorrect loan information may have been provided the Army.

3.  The applicant provides the following in support of her request:  an Application/Promissory Note from Sallie Mae; letters from Great Lakes Education Servicing Corporation, dated 30 September 2000 and 9 March 2001; a Loan Consolidation Disclosure Statement and Repayment Schedule, dated 28 February 2001; and a letter from the US Total Army Personnel Command (PERSCOM), dated 24 March 2003, that states the applicant's "Alternative Loan" does not qualify for payment under the LRP.

CONSIDERATION OF EVIDENCE: 

1.  On 8 December 2001, the applicant enlisted in the Delayed Entry Program (DEP).  Her DA Form 3286-66 (Statement of Understanding-US Army Incentive Enlistment Program) shows she enlisted for Option 9A, the US Army Training Enlistment Program, and Option 9C, the US Army Incentive Enlistment Program which included the High School Graduate Bonus/Cash Bonus and the LRP.  The applicant authenticated her DA Form 3286-66 indicating that she understood the provisions of the LRP.

2.  On 3 April 2002, the applicant was separated from the DEP and she enlisted in the Regular Army for a period of 4 years.  Upon enlistment, she authenticated her DD Form 1966/3 to show that no changes were required concerning her enlistment options.  

3.  The applicant completed her initial entry training and was serving in the rank of specialist, pay grade E-4, at Fort Hood, Texas, when she made application for repayment of her educational loans under the LRP.  On 24 March 2003, the US Total Army Personnel Command (PERSCOM) notified her that one of her loans, an alternative loan made by the Great Lakes Higher Education Corporation (GLHEC), did not qualify for LRP repayment. 

4.  On 27 March 2003, the applicant applied to the Army Board for Correction of Military Records seeking repayment of all her loans.

5.  In the processing of this case, an advisory opinion was obtained from the PERSCOM Education Incentives and Counseling Branch which recommends disapproval of the applicant's request.  The opinion states that the GLHEC loan is non-qualifying because it was not made, insured, or guaranteed under Title IV, Part B, D, or E of the Higher Education Act of 1965.  It further states that the applicant has a total educational debt of $80,369.46, of which the US Army will pay $65,000.  This is the maximum allowed under the LRP.  The applicant was provided an opportunity to respond to the advisory opinion, but did not do so.

6.  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 AR 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, up to a maximum of $65,000, 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."

7.  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.

DISCUSSION AND CONCLUSIONS:

1.  The applicant enlisted for the LRP and one of her loans (the Alternative Loan) did not qualify for payment.  However, based on the total amount of qualifying loans, the applicant will receive the maximum repayment of $65,000 under the LRP.

2.  Even if the applicant's Alternative Loan did qualify for payment under the LRP, it would not be authorized  for payment as her total loan amount of $80,369.46 exceeds the maximum amount payable under the LRP.

3.  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 DA Form 3286-66 also clearly states that payment of loans will not exceed $65,000.  At the time of enlistment, the applicant acknowledged in writing that she understood these provisions.  She has provided no evidence to the contrary.

4.  The PERSCOM advisory opinion recommends that the applicant's request be denied.  The applicant did not see fit to rebut 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	AR2003087992	
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.