MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:  

	BOARD DATE:  9 March 2000
	DOCKET NUMBER:   AR1999030706

	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.

			Director	
	Ms. Lee Tinsley		Analyst	

  The following members, a quorum, were present:

	Ms. June Hajjar		Chairperson	
	Ms. Carol J. Suiter		Member	
	Mr. Thomas D. Howard		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 his student loan in the amount of $1226.74 be accepted into the Loan Repayment Program (LRP) as per his enlistment contract.

APPLICANT STATES:  That certain student loans are not accepted into the loan repayment program as per his enlistment contract.  A material misrepresentation was made by his recruiter regarding an instrumental part of his enlistment contract and there was a failure on the part of his recruiter to investigate thoroughly enough the status of the applicant’s student loans.

EVIDENCE OF RECORD:  The applicant's military records were not provided to the board.  The following information was obtained from documentation provided by the applicant himself.

The applicant enlisted on 25 August 1997.  At that time he indicated an interest and an understanding of the LRP, as evidenced by his initials in the blocks provided for that option on his DA Form 3286-66 (Statement of Understanding US Army Incentive Enlistment Program).  He initialed the statement that provides for LRP for qualifying loans.  The applicant also received a $12,000 cash bonus.
However, the applicant did not provide the Board a completed DD Form 2366, disenrolling himself from the GI Bill.

On 21 April 1999, while serving on active duty in pay grade E-4, the applicant submitted a DD Form 2475 (DOD Educational Loan Repayment Program (LRP) Annual Application) to the Total Army Personnel Command (PERSCOM).

On 26 May 1999, PERSCOM responded to the applicant stating that since his loan was not insured under the Higher Education Act of 1965 it was not, by law, payable under the LRP.

The LRP is an educational enlistment incentive which provides for payment of 
33 1/3 percent or $1,500.00 of the unpaid principal of eligible student loans for each year of active duty a soldier completes.

Title 10, 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.

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.  Considering all the facts in this case, including the evidence provided by the applicant, the applicant’s loan is not payable by law under the LRP.

2.  While it is unfortunate that the applicant was lead to believe that all of his student loans would qualify under the LRP, he initialed off on the premise that he understood that some of his student loans may not be payable under the LRP.  The Board does not have the authority to violate public law.  To pay the applicant’s unqualified loan would be in direct contravention of Title 10, section 2171.

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

_JH____  __CS____  ___TH__  DENY APPLICATION

Karl F. Schneider
Director, Army Review Boards Agency

INDEX

CASE ID	AR1999030706	
SUFFIX		
RECON		
DATE BOARDED	20000309	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	DENY	
REVIEW AUTHORITY		
ISSUES         1.  112.12	Loan Repayment Program	
2.		
3.		
4.		
5.		
6.