| Mr. Carl W. S. Chun | Director | |
| Ms. Wanda L. Waller | Analyst |
| Ms. Margaret K. Patterson | Chairperson | |
| Ms. Karol A. Kennedy | Member | |
| Mr. Richard T. Dunbar | Member |
APPLICANT REQUESTS: That the Army repay his student loans under the Loan Repayment Program (LRP).
APPLICANT STATES: That he joined the Army to be a 19D (Scout) with the incentives of a cash bonus and the Army LRP. He contends that he has two loans, a Stafford and a CitiAssist. He states that it is his understanding that the Army will pay 1/3 of his loan for each year he completes in service. Before he enlisted into the Army he was guaranteed payments on these loans. One year later, after processing his LRP applications, the Stafford loan was approved for payment and the CitiAssist loan was not because it was a Private Loan. In support of his application, he submits his enlistment contract; loan information; and proof that the CitiAssist loan was used for educational purposes.
EVIDENCE OF RECORD: The applicant's military records show:
On 20 August 1998 the applicant applied for and received a student loan (CitiAssist) for educational purposes. There is no evidence in the available records which shows this loan was made, insured, or guaranteed under Title IV, Part B, D, or E of the Higher Education Act of 1965.
In August 1999 the applicant applied for and received a student loan (Federal Stafford) for educational purposes. This loan was guaranteed under the Higher Education Act of 1965.
The applicant entered the delayed entry program on 3 November 1999. His DA Form 3286-59 (Statement for Enlistment) shows that he enlisted for the U.S. Army Incentive Enlistment Program (Cash Bonus ($8000) and LRP). His DA Form 3286-66 (Statement of Understanding) shows he enlisted for the U.S. Army Cash Bonus ($8000) and the LRP. He enlisted in the Regular Army on 30 December 1999 for a period of 4 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-3. The applicant also stated that he is scheduled to be discharged on
29 December 2003.
In the processing of this case an advisory opinion was obtained from the Chief, Education Incentives 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 (LPR) 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 applicant’s CitiAssist loan does not qualify for repayment under the LRP. This is a Private Loan that 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 loan. The applicant borrowed money for his education and then joined the Army to have his qualifying loans repaid. As of 31 July 2001, this office has not received a DD Form 2475 (DoD Educational Loan Repayment Program Annual Application) for the applicant’s Stafford loan.
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 applicant did enlist for the Loan Repayment Program. However, evidence of record shows that the applicant’s CitiAssist student loan was 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 this student loan.
2. Evidence of record shows that the applicant’s Stafford loan was guaranteed under the Higher Education Act of 1965. However, the Chief, Education Incentives and Counseling Branch indicated that his office has not received a DD Form 2475 (DoD Educational Loan Repayment Program Annual Application) for the applicant’s Stafford loan as of 31 July 2001. Therefore, payment cannot be made toward this student loan until the applicant implements the necessary enrollment procedures.
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
MKP____ KAK_____ RTD____ DENY APPLICATION
| CASE ID | AR2001057924 |
| SUFFIX | |
| RECON | |
| DATE BOARDED | 20011002 |
| TYPE OF DISCHARGE | |
| DATE OF DISCHARGE | |
| DISCHARGE AUTHORITY | |
| DISCHARGE REASON | |
| BOARD DECISION | (DENY) |
| REVIEW AUTHORITY | |
| ISSUES 1. | 112.1200 |
| 2. | |
| 3. | |
| 4. | |
| 5. | |
| 6. |
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