MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:      

	BOARD DATE:           18 October 2001                  
	DOCKET NUMBER:   AR2001062633

	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	
	Mr. W. E. Schnupp		Analyst	

  The following members, a quorum, were present:

	Mr. Fred N. Eichorn		Chairperson	
	Mr. Melvin H. Meyer		Member	
	Ms. Barbara J. Ellis		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:  Repayment of his student loan under the Loan Repayment Program (LRP).

APPLICANT STATES:  That while attending the University of Phoenix prior to his entry on active duty, he applied for and received a PLATO Education Loan.  He contends that the loan was for paying his educational expenses only.  In fact, he says, after the University of Phoenix took the money it was due, he could account for all of the money from the loan, except $48.00.  Since the loan was used to pay his education expenses only, he believes it should qualify for repayment under the LRP.

In support of his request, he submits a copy of his DoD Educational Loan Repayment Annual Application, a copy of the Tuition Loan Application & Promissory Note for his PLATO Education Loan, and a copy of a 6 June 2001 letter from the US Total Army Personnel Command (PERSCOM), Education Incentives Branch, denying his request for repayment of his PLATO Education Loan under the LRP.

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

He enlisted in the Regular Army for 4 years on 6 July 2000 in the grade of private first class.  The record shows that he enlisted for the LRP and cash bonus.  He is currently on active duty stationed in Korea.

The applicant’s DoD Educational Loan Repayment Annual Application (DD Form 2475) shows that the type of loan he requested was “private - unsecured.”  The unpaid principal balance, as of April 2001, was $10,603.65.  

PERSCOM’s denial of his request to use the LRP to repay his education loan was premised on the fact that the loan did not meet the eligibility criteria for repayment.  Such loans must be made, insured or guaranteed under the Higher Education Act.  The applicant’s loan, as indicated by his DD Form 2475, was a private unsecured loan not eligible for payment.

Title 10, U.S. Code, 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

The LRP is an educational enlistment incentive, which provides that the government will repay a designated portion, (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) provided such loan was made, insured or guaranteed as indicated above.

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.  The applicant’s PLATO Education Loan was not eligible for payment under the LRP inasmuch as it was not made, insured or guaranteed under the Higher Education Act. 

2.  Furthermore, while the loan may have been used exclusively for educational needs, it was clearly indicated on the loan application that it was a private unsecured loan, which could have been used for any purpose, therefore, did not meet the criterion for payment under the LRP.

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 satisfies 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:

___fne__  ____mhm  ____bje__  GRANT

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

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

INDEX

CASE ID	AR2001062633	
SUFFIX		
RECON	YYYYMMDD	
DATE BOARDED	20011018	
TYPE OF DISCHARGE	(HD, GD, UOTHC, UD, BCD, DD, UNCHAR)	
DATE OF DISCHARGE	YYYYMMDD	
DISCHARGE AUTHORITY	AR .  .  .  .  .  	
DISCHARGE REASON		
BOARD DECISION	(DENY)	
REVIEW AUTHORITY		
ISSUES         1.  103.00		
2.		
3.		
4.		
5.		
6.