| Mr. Carl W. S. Chun | Director | |
| Mrs. Nancy Amos | Analyst |
| Mr. Fred N. Eichorn | Chairperson | |
| Mr. John E. Denning | Member | |
| Mr. Terry L. Placek | Member |
APPLICANT REQUESTS: That his student loans under the Loan Repayment Program (LRP) be paid as guaranteed by his enlistment contract.
APPLICANT STATES: That he was told in his contract that his student loans would be paid off. That is the only reason he is in the Army. He was never told what qualified and what did not before he got “this” (“this” was not provided).
EVIDENCE OF RECORD: The applicant's military records are not available. Information contained herein was obtained from documents provided by the applicant.
On or about 23 June 2000, the applicant enlisted in the Regular Army for 4 years. His Statement for Enlistment, DA Form 3286-59, shows that he enlisted for the U. S. Army Incentive Enlistment Program – Cash Bonus of $16,000. His DA Form 3286-66 shows that he also enlisted for the U. S. Army Incentive Enlistment Program - Loan Repayment Program up to $65,000.00. The DA Form 3286-66 reflects that he understood that under the LRP the government would repay a designated portion of any loan he incurred that was made, insured or guaranteed under Part B of the Higher Education Act of 1965 or any loan under Part E of such act after 1 October 1975 and before he enlisted into the Regular Army.
The U. S. Total Army Personnel Command has verified that the applicant has two eligible, Stafford loans for $4,225.00 and $11,000 for which they authorized the first payment of $1,408,33 and $3,666.67, respectively, in June 2001. He also had four private, unsecured loans totaling $22,483.84 that are not eligible for repayment.
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 or E of the Higher Education Act of 1965, or William D. Ford Loan. Before entering active duty, the loan must not be in default. The borrower is responsible for obtaining a deferment/forbearance with the loan holder and the loan must remain in good standing throughout the repayment process. 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.
Army Regulation 635-200 sets forth the basic authority for the separation of enlisted personnel from the Regular Army. Chapter 7 discusses defective or unfulfilled enlistment or reenlistment agreements. It states that an enlisted soldier will be discharged when a defective enlistment or reenlistment agreement exists under three circumstances. One circumstance is when a material misrepresentation is made by recruiting or retention personnel on which the soldier reasonably relied and thereby was induced to enlist or reenlist with a commitment for which the soldier was not qualified.
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 enlistment contract does not specify that all his student loans were eligible for repayment. However, if he believes he was misled by his recruiters into believing so, there is a regulatory remedy for correcting that type of error and that is to request discharge for a defective enlistment agreement.
2. 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
__fne___ __jed___ __tlp___ DENY APPLICATION
| CASE ID | AR2001059645 |
| SUFFIX | |
| RECON | |
| DATE BOARDED | 20010913 |
| TYPE OF DISCHARGE | |
| DATE OF DISCHARGE | |
| DISCHARGE AUTHORITY | |
| DISCHARGE REASON | |
| BOARD DECISION | (DENY) |
| REVIEW AUTHORITY | |
| ISSUES 1. | 112.04 |
| 2. | |
| 3. | |
| 4. | |
| 5. | |
| 6. |
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