MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:   

	BOARD DATE:           25 July 2002                   
	DOCKET NUMBER:   AR2001066113

	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. Richard T. Dunbar 		Member	
	Mr. Kenneth W. Lapin 		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 her student loans under the Loan Repayment Program (LRP).  

APPLICANT STATES:  In effect, that she enlisted under the LRP for up to $65,000 and that after serving one year of active duty she was told that her loans did not meet the eligibility criteria for the LRP.  She contends that she specifically advised the recruiter that her one and only reason for enlisting was to repay her student loans.  She states that when she went to the Military Entrance Processing Station to leave for basic training she was not allowed to leave until she received copies of promissory notes from the University that she attended.  She goes on to state that she left a prominent job and took a tremendous cut in pay because she believed that in the long run she would be better off having gotten out of ten years of debt by serving four years of military service.  She states that she chose her military occupational specialty (MOS) based solely on the fact that it came with the loan repayment.  However, since her loans are not being paid, her security clearance is in jeopardy.  If her clearance is pulled, she has to change her MOS and because she received a bonus for her MOS she will have to repay the bonus.  She indicates that she is currently making loan payments of $350 which is putting quite a drain on her private first class salary.  She also contends that she is not asking for anything that was not promised, that she was promised the LRP, that she was only told that the Army did not pay back bank loans, and that she was never advised that her student loans had to meet any type of criteria.  In support of her application, she submits a letter of explanation, dated 19 November 2001; a letter, dated 20 November 2001, from her commander; a letter, dated 21 June 2001, from the U.S. Total Army Personnel Command; a letter, dated 24 May 2001, from the Texas Higher Education Coordinating Board; copies of her enlistment contract; and copies of her student loan contracts.

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

In 1995 and 1996, the applicant applied for and received student loans from the Hinson-Hazlewood College Student Loan Program 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.

The applicant entered the delayed entry program on 2 June 2000.  Her DA Form 3286-59 (Statement for Enlistment) shows that she enlisted for the U.S. Army Incentive Enlistment Program (Cash Bonus ($5000) and LRP).  Her DA Form 3286-66 (Statement of Understanding) shows she enlisted for the U.S. Army Cash Bonus and the LRP.  She enlisted in the Regular Army on 27 June 2000 for a period of 4 years.  

At the time the applicant submitted her application to the Army Board for Correction of Military Records, she was serving on active duty in pay grade E-3.    
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 1975 (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.”

The applicant provided a letter, dated 21 June 2001, from the Chief, Education Incentives and Counseling Branch, U.S. Total Army Personnel Command.  This letter states “Individuals enlisting with LRP as a part of their enlistment contract must meet certain eligibility criteria.  Part of the eligibility criteria is to have loans that qualify under the LRP.  Loans eligible for repayment under the LRP are Stafford, Perkins, Parent Loans for Undergraduate Students, Supplemental loans, or any loan made insured or guaranteed under the Higher Education Act, Title IV, Part B, D, or E.  In addition, Public Law 99-145, Section 671(a)(1) confirms loans eligible for repayment must be made, insured or guaranteed prior to entry on active duty.  Payment toward loans that do not qualify under the LRP would be in violation of the law governing this program.  There are no exceptions to the law.”  This letter indicates that the applicant’s student loan from the Hinson-Hazlewood College Student Loan Program is a College Access Loan and does not quality for repayment under the LRP.

In support of her claim, the applicant provided a letter from her commander.  He asserts that the applicant enlisted in the Army for the LRP and with the understanding that she was eligible for the LRP.  He feels that the applicant should either be released from active duty or have her loans repaid according to her contract, with enlistment funds or other funds available.

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.  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, it is concluded:

1.  The applicant’s contention that she was never advised that her student loans had to meet any type of criteria, is not supported by the evidence of record.  Her 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 1975 (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.”
  
2.  The applicant did enlist for the Loan Repayment Program.  However, evidence of record shows that the applicant’s student loans were not made, insured, or guaranteed under Title IV, Part B, D, or E of the Higher Education Act.  Therefore, payment cannot be made toward these 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___  RTD_____  KWL_____  DENY APPLICATION

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

INDEX

CASE ID	AR2001066113	
SUFFIX		
RECON		
DATE BOARDED	20020725	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	(DENY)	
REVIEW AUTHORITY		
ISSUES         1.	112.1200	
2.		
3.		
4.		
5.		
6.