MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:   

	BOARD DATE:           16 February 2000                   
	DOCKET NUMBER:   AR1999031234

	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.

	Mrs. Nancy Amos		Analyst	

  The following members, a quorum, were present:

	Mr. Arthur A. Omartian		Chairperson	
	Mr. Curtis L. Greenway		Member	
	Ms. Meta Waller		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 two of his student loans in the amount of $11,000.

APPLICANT STATES:  That his recruiter reviewed all his loan records prior to his enlistment in November 1993 and gave no indication that some of them did not qualify for the Loan Repayment Program (LRP).  Had he known this prior to his enlistment he would not have enlisted due to the financial strain repayment will cause him.

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

He entered the Delayed Entry Program on 22 May 1993.  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 November 1993.

In 1995, the applicant applied to have two loans repaid under the LRP.  The Education Incentives Branch, U. S. Total Army Personnel Command (PERSCOM) denied that request because the loans were unsecured student loans which were not made, insured, or guaranteed under Title IV Part V or E of the Higher Education Act of 1965.

On 25 July 1997, the applicant extended his enlistment for 45 months.

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.  

In the processing of this case, an advisory opinion was obtained from the Education Incentives Branch, PERSCOM.  The opinion referenced its previous (1995) correspondence and reiterated that the loans for which he was requesting payment were not authorized loans under the meaning of the Higher Education Act of 1965.  There were no exceptions to the law; therefore, payment could not be made toward these student loans.  The opinion did note that to date the applicant has received payments toward $11,442.00 on loans that did qualify under the LRP.

This opinion was provided to the applicant for comment or rebuttal.  He failed to respond within the given time frame.

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 evidence that would satisfy the aforementioned requirement.

2.  The applicant did enlist for the Loan Repayment Program and at least one of his loans did qualify for repayment; to date, he has received payments toward $11,442.00 on such a loan.  He provides no evidence to show his recruiter told him all his loans qualified.

3.  The Board is also not convinced that the applicant’s enlistment was contingent upon being certain all his loans qualified for the LRP.  The Board notes that he extended his enlistment for 45 additional months after he had been informed that these two loans did not qualify for repayment.

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

__aao___  __clg___  __mw____  DENY APPLICATION

Karl F. Schneider
Director, Army Review Boards Agency

INDEX

CASE ID	AR1999031234	
SUFFIX		
RECON		
DATE BOARDED	20000216	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	(DENY)	
REVIEW AUTHORITY		
ISSUES         1.	128.14	
2.		
3.		
4.		
5.		
6.