MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:       

	BOARD DATE:            1 August 2000
	DOCKET NUMBER:   AR1999031099

	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. Gale J. Thomas		Analyst	

The following members, a quorum, were present:

	Ms. Deborah S. Jacobs		Chairperson	
	Ms. Karol A. Kennedy		Member	
	Mr. Ernest W. Lutz, Jr.		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 the Army repay his Graduate Access Loan (GAL).  

APPLICANT STATES:  That he was never counseled as to what loans would be considered eligible under the Loan Repayment Program (LRP), and was told that all of his loans from school would be paid.  

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

He entered the Delayed Entry Program on 4 June 1998.  His DA Form 3286-59, Statement for Enlistment, shows that he enlisted for the U. S. Army Incentive Enlistment Program – Loan Repayment Program.  His DA Form 3286-66, Statement of Understanding, United States Army Incentive Enlistment Program, shows that he enlisted for the LRP.  On this form, he acknowledged that under the LRP the government would repay a designated portion of any loan he 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 he enlisted into the Regular Army.  He enlisted in the Regular Army on 23 September 1998.

In 1999, the Education Incentives Branch, U. S. Total Army Personnel Command denied one of his requests for a loan repayment because the loan was a Graduate Access Loan (GAL), which was not made, insured or guaranteed under Title IV part B, D, or E of the Higher Education Act of 1965.

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.  

Army Regulation 621-202, provides that the soldier must provide the U.S. Army with his loan promissory note before enlistment, and in turn the U.S. Army Recruiting Command must forward these promissory notes to the Education Incentives Branch for verification of eligibility.  A promissory note for the applicant’s GAL was not provided at the time of his enlistment, therefore eligibility was not determined until his application for repayment was submitted in May 1999.

In the processing of this case, an advisory opinion was obtained from the Education Incentives Branch, U. S. Total Army Personnel Command.  (COPY ATTACHED)  The opinion stated that the loan for which he was requesting payment was not an authorized loan under the meaning of the Higher Education Act of 1965.  There were no exceptions to the law; therefore, payment could not be made toward this student loan.  The opinion did note that to date, the applicant has received a one-third payment toward $14,884.00 on loans that did qualify under the LRP.

This opinion was provided to the applicant for possible rebuttal.  The applicant failed to respond within the given timeframe.

DISCUSSION:  Considering all the evidence, allegations, and information presented by the applicant, together with the evidence of record, applicable law and regulations, and advisory opinion it is concluded:

1.  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 to evidence to show error or injustice in this case.  

2.  The applicant did enlist for the Loan Repayment Program, and did qualify for repayment, to date, he has received a one-third payment towards loans totaling  $14, 884.00.

3.  The applicant has provided no evidence to show his GAL qualified under the Higher Education Act of 1965.

5.  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

___dj ___  __ewl ___  __kak___  DENY APPLICATION

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

INDEX

CASE ID	AR1999031099	
SUFFIX		
RECON		
DATE BOARDED	2000/08/01	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	DENY	
REVIEW AUTHORITY		
ISSUES         1.  283	128.0000/repay loan	
2.		
3.		
4.		
5.		
6.