2.  The applicant requests that the loans his parents cosigned for his college education be paid in accordance with the provisions of the Loan Repayment Program (LRP) enlistment educational incentive and that he be refunded the $1,200.00 that was collected from his pay for the Montgomery G.I. Bill.

3.  He states that he enlisted specifically for the LRP, and had declined the MGIB.  However, money was erroneously deducted from his pay for the MGIB and the Army failed to make payments on his student loans.  His parents were forced as cosigners of the student loans to pay off the loans when they were about to go into default.  He has now been told that his educational loans are not payable under the LRP since they have been paid off.

4.  In support of his application he submits copies of student loans and college transcripts.

5.  The applicant's military records show that he enlisted in the USAR Delayed Entry Program on 3 May 1993.   At that time he completed a DD Form 1966/3, Record of Processing, Armed Forces of the United States, a DA Form 3286-67, Statement of Understanding, a DA Form 3286-59, Statement for Enlistment, United States Army Enlistment Program, U.S. Army Delayed Enlistment Program, and a DA Form 3286-66, Statement of Understanding United States Army Incentive Enlistment Program, all of which show that he enlisted for the LRP.  Also contained in the applicant’s records is a DD Form 2366, Veterans Educational Assistance Act of 1984 (New GI Bill) in which the applicant completed item 4, Statement of Disenrollment.  The applicant enlisted in the Regular Army for 3 years in pay grade E-3 on 30 June 1993.

6.  On the date the applicant submitted his application to the Board he was serving on active duty in pay grade E-4.  He has since completed his enlistment and has been released from active duty.

7.  The LRP is an educational enlistment incentive which provides for payment of 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, whichever is greater.  When a soldier enlists for this option, a DA Form 3286-66 must be completed indicating that he has been promised the LRP, and the soldier must disenroll from the MGIB.

8.  In the processing of this case an advisory opinion was obtained from the Total Army Personnel Command (PERSCOM).  The PERSCOM stated that Public Law 99-145 precludes reimbursement to individuals of payments made on student loans.  Since the applicant’s parents paid off his loans, they are no longer payable under the LRP.  As for the reimbursement of the money deducted from the applicant for the MGIB, the PERSCOM provided the Board a copy of its memorandum to the Defense Finance and Accounting Service in which the PERSCOM declared an administrative error in the applicant’s enrollment in the MGIB, and authorized the refund of those monies to him.

9.  The staff of the Board considered it necessary to contact the PERSCOM for additional information.  The PERSCOM confirmed that aside from the prohibition set forth in its advisory opinion, the applicant’s student loans would be otherwise payable under the LRP

CONCLUSIONS:

1.  The applicant obviously enlisted for the LRP and declined the MGIB.

2.  It appears that an administrative error was made which resulted in MGIB “contributions” being deducted from the applicant’s pay.  That error caused the applicant to be considered to have declined the LRP since no soldier may be enrolled in both educational incentives.

3.  The time spent correcting that error resulted in the applicant’s student loans becoming due.  To protect their credit rating, the applicant’s parents had no choice but to pay those student loans.

4.  In view of the preceding, it is evident that the applicant’s present predicament was in no way caused by any actions, or lack of actions, taken by him.

5.  That portion of the applicant’s request as pertains to refunding the money collected from his pay for the MGIB is not addressed by the Board since the PERSCOM has already administratively corrected that error.

6.  In view of the foregoing, the applicant’s records should be corrected as recommended below.

RECOMMENDATION:

That all of the Department of the Army records related to this case be corrected by reimbursing the individual concerned for the money he or his parents paid to satisfy his student loans, an amount not to exceed the amount he would have been eligible to receive under the LRP, as an exception to policy.

BOARD VOTE:  

                       GRANT AS STATED IN RECOMMENDATION

                       GRANT FORMAL HEARING

                       DENY APPLICATION




		                           
		        CHAIRPERSON