MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:   

	BOARD DATE:           31 January 2002    
	DOCKET NUMBER:   AR2001060616

	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. Wanda L. Waller		Analyst	

  The following members, a quorum, were present:

	Mr. Raymond V. O’Connor		Chairperson	
	Mr. Elzey J. Arledge		Member	
	Ms. Regan K. Smith		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 loans under the Student Loan Repayment Program (SLRP).

APPLICANT STATES:  That when he enlisted into the Army (delayed entry program) in February 2000, he asked if all of his loans were eligible for the SLRP.  He asked his recruiter, and then asked his guidance counselor at the Military Entrance Processing Station in Richmond, Virginia.  They all assured him that his loans qualified.  He had all of his paperwork in, so there was no question as to the nature of his loans, nor the institutions that granted him the loans.  In support of his application, he submits his enlistment contract; loan papers; a letter from his commander; a letter from his recruiter which was addressed to all the loan granting institutions promising a full repayment over the course of three years.    

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

Between September 1994 and September 1998, the applicant applied for and received student loans (Key Alternative Loans) for educational purposes.  There is no evidence in the available records which shows these loans were made, insured, or guaranteed under Title IV, Part B, D, or E of the Higher Education Act of 1965.  

The applicant entered the delayed entry program on 3 February 2000.  His DA Form 3286-59 (Statement for Enlistment) shows that he enlisted for the U.S. Army Incentive Enlistment Program (Loan Repayment Program and Cash Bonus $20,000).  His DA Form 3286-66 (Statement of Understanding) shows he enlisted for the Loan Repayment Program and Cash Bonus.  

Section VI (Remarks) on the applicant’s DD Form 1966/3 (Record of Military Processing - Armed Forces of the United States) shows that the recruiter made the entry, “LRP [Loan Repayment Program] papers mailed on 000302”, initialed the entry and dated the entry on 1 March 2000.  The applicant enlisted in the Regular Army on 1 March 2000 for a period of 5 years.  

At the time the applicant submitted his application to the Army Board for Correction of Military Records, he was serving on active duty in pay grade E-4.    

In the processing of this case an advisory opinion was obtained from the Chief, Education Incentives and Counseling Branch, U.S. Total Army Personnel Command.  That office recommends disapproval of the applicant’s request.

The opinion points out that the applicant’s DA Form 3286-66, Section 4, item 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”.  In addition, Public Law 99-145, Section 671(a)(1) confirms loans eligible for repayment must be made under Title IV, Part B, D, or E of the Higher Education Act of 1965.

The advisory opinion further states that based on documentation provided, the loan does not qualify for repayment under the LRP.  The Key Alternative Loan is not made, insured, or guaranteed under Title IV, Part B, D, or E of the Higher Education Act of 1965.  There are no exceptions to the law; therefore, payment cannot be made toward his student loans.  The applicant borrowed money for his education and then joined the Army to have his qualifying loans repaid.        

A copy of the advisory opinion was provided to the applicant for comment and possible rebuttal.  He did not respond within the given time frame. 

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, D or E of the Higher Education Act of 1965.  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.

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(s), it is concluded:

1.  The evidence of record implies that the applicant’s loan repayment program paperwork was not entirely available on the date of his enlistment.

2.  The applicant did enlist for the Student Loan Repayment Program.  However, evidence of record shows that the applicant’s Key Alternative Loans were not made, insured, or guaranteed under Title IV, Part B, D, or E of the Higher Education Act of 1965.  Therefore, payment cannot be made toward his student loans.  

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

RVO___  EJA_____  RKS_____  DENY APPLICATION

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

INDEX

CASE ID	AR2001060616	
SUFFIX		
RECON		
DATE BOARDED	20020131	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	(DENY)	
REVIEW AUTHORITY		
ISSUES         1.	112.1200	
2.		
3.		
4.		
5.		
6.