APPLICANT REQUESTS: That the loans he was given by his parents and by the Rotary Club to pay for his education be paid for by the Army under the Loan Repayment Program (LRP) enlistment educational incentive or, as an alternative, that he be honorably discharged due to a breech of contract.
APPLICANT STATES: That he enlisted specifically for the LRP, his recruiter was aware of the types of loans he had made to finance his education, he would not have enlisted if he had been aware that his loans would not have been paid under the LRP, and if his recruiter had known that his educational loans were not payable under the LRP, he should have told him.
In support of his application he submits copies of loans from the Rotary Club and a mortgage company, a statement from his father who states that the second mortgage loan he had taken out was for the purpose of financing his sons education and that his son had agreed to repay that amount, and promissory notes from the applicant to his parents for the money they borrowed and lent him.
EVIDENCE OF RECORD: The applicant's military records show:
He enlisted in the USAR Delayed Entry Program on 17 March 1994. At that time he completed a DA Form 3286-67, Statement of Understanding, in which it is stated in item 5 I have enlisted for the following Educational Incentive Programs (initial under the appropriate column for each program). The form then has yes and no areas for the enlistee to initial if the Montgomery G.I. Bill (MGIB), the Army College Fund (ACF), or the LRP are chosen in conjunction with the enlistment. The applicant initialed the Yes block for the LRP and the no blocks for the ACF and the MGIB. In seeming contradiction to this selection, the applicants DA Form 3286-59, Statement for Enlistment, U.S. Army Delayed Enlistment Program, only shows the training of choice enlistment option for military police being selected, and his DD Form 1966/1, Record of Military Processing, Armed Forces of the United States, block 21, item 51, has the code N entered (not eligible for the LRP). This form also has block 14 coded to show the applicant had a bachelors degree at the time of enlistment. The applicant enlisted in the Regular Army for 5 years in pay grade E-4 on 6 May 1994.
On the date the applicant submitted his application to the Board he was serving on active duty in pay grade E-4.
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. 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.
In the processing of this case an advisory opinion was obtained (COPY ATTACHED) from the Total Army Personnel Command (PERSCOM). The PERSCOM stated that Public Law 99-145 limits loans that are eligible for repayment under the LRP to those made, insured, or guaranteed under the Higher Education Act of 1965. In the applicants case none of his loans are covered under the Higher Education Act of 1965 and, therefore, not payable under the LRP. The PERSCOM recommends disapproval of the applicants request.
The staff of the Board considered it necessary to contact the PERSCOM for additional information. The PERSCOM stated that no loans have been paid for the applicant under the LRP, but a note in his file shows that he had informed that office that he has loans which would qualify under the Higher Education Act of 1965, but has not as yet submitted those notes for payment. The PERSCOM continued that there is no record that the applicant actually enlisted for the LRP, as the DA Form 3286-67 the applicant completed is only a form an enlistee completes to express his or her preferences for available programs, and a
DA Form 3286-66 must be completed for an applicant to actually enlist for the LRP. In the applicants case, that form is not present, but the PERSCOM has accepted the applicant as having enlisted for that option.
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. The loans the applicant has requested to be paid were not guaranteed under the Higher Education Act of 1965. As such, they are precluded, by law, from being paid under the LRP, as are similar loans which other soldiers would like to be paid for under this program. To grant the applicants request would be giving him a benefit not afforded other soldiers in like situations.
2. The applicant apparently expressed an interest in the LRP when he enlisted in the DEP. However, other than the form he completed in which he expressed an interest in the LRP, all of the other enlistment documents show that he was not eligible for the LRP.
3. However, the PERSCOM has accepted the applicant as a valid LRP option participant.
4. Based on the conversation the applicant had with the PERSCOM, it appears that he has loans which would qualify for payment under the LRP. It also appears that the PERSCOM will pay those loans if the applicant submits them, despite the lack of documentation to show that he actually enlisted for the LRP.
5. In view of the foregoing, there is no basis for granting the applicants 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
DENY APPLICATION
Karl F. Schneider
Acting Director
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