| Mr. Carl W. S. Chun | Director | |
| Ms. Wanda L. Waller | Analyst |
| Ms. Joann Langston | Chairperson | |
| Ms. Margaret K. Patterson | Member | |
| Mr. Eric N. Andersen | Member |
APPLICANT REQUESTS: In effect, that the Army pay for student loans not covered under Part B of the Higher Education Act of 1965.
APPLICANT STATES: That he believes the record to be unjust due to the fact that a sergeant assured him on several occasions that all three student loans (Stafford, Alternative Loan Program, and Excel) would be paid in full under the Student Loan Repayment Program (SLRP). He contends that a sergeant first class also assured him at the Military Entrance Processing Station on two occasions (30 July 1996 and 2 October 1996) that all three student loans would be paid in full under the SLRP. In support of his application, he submits a letter, dated 1 May 1997, from the Chief, Education and Incentives at U.S. Total Army Personnel Command; his enlistment contract; three student loan promissory notes; and a DD Form 2475 (Loan Repayment Program Annual Application), dated 21 March 1997.
EVIDENCE OF RECORD: The applicant's military records show:
On 28 July 1994, the applicant applied for and received a student loan (Excel) 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.
On 18 August 1995, the applicant applied for and received a student loan (Alternative Loan Program) 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.
The applicant entered the delayed entry program on 30 July 1996. His DA Form 3286-59 (Statement for Enlistment) shows that he enlisted for the U.S. Army Incentive Enlistment Program. His DA Form 3286-66 (Statement of Understanding) shows he enlisted for the SLRP. He enlisted in the Regular Army on 2 October 1996 for a period of 5 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-4.
The applicant provided a letter, dated 1 May 1997, from the Chief, Education Incentives, U.S. Total Army Personnel Command. This letter indicates that the applicant’s student loan from the Alternative Loan Program does not qualify for repayment under the Loan Repayment Program (LRP).
In the processing of this case an advisory opinion was obtained from the Chief, Education Incentives and Counseling 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 loans do not qualify for repayment under the LRP. The Excel and Alternative Loan Program are considered private loans and are 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 loans. The applicant borrowed money for his education and then joined the Army to have his qualifying loans repaid.
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, it is concluded:
1. The applicant did enlist for the Student Loan Repayment Program. However, evidence of record shows that the applicant’s Excel and Alternative Loan Program loans were not made, insured, or guaranteed under Title IV, Part B, D, or E of the Higher Education Act of 1965. 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.
2. The Board considered the applicant’s request for acquisition of additional funds to pay off his college loans not covered by Part B of the Higher Education Act of 1965. However, there are no exceptions to the law; therefore, payment cannot be made toward his 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
JL______ MKP____ ENA_____ DENY APPLICATION
| CASE ID | AR2001060614 |
| SUFFIX | |
| RECON | |
| DATE BOARDED | 20011204 |
| 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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