| Mr. Carl W. S. Chun | Director | |
| Ms. Wanda L. Waller | Analyst |
| Mr. George Paxson | Chairperson | |
| Ms. Deborah Jacobs | Member | |
| Mr. Ronald E. Blakely | Member |
APPLICANT REQUESTS: That the Army repay his student loan under the Loan Repayment Program (LRP).
APPLICANT STATES: In effect, that the loan was used for educational purposes at an accredited university and that it was his understanding and belief prior to and during the enlistment process that the loan in question qualified for the LRP. He contends that the injustice was discovered after more than a year completion of his current enlistment and that all other administrative recourses had been exhausted. In support of his application, he submits a letter of explanation with six enclosures described in Attachment A.
EVIDENCE OF RECORD: The applicant's military records show:
On 16 September 1998, the applicant applied for and received an Illinois Student Assistance Commission (ISAC) Alternative Loan through the University of Chicago 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 18 November 1999. His DA Form 3286-59 (Statement for Enlistment) shows that he enlisted for the U.S. Army Incentive Enlistment Program (Cash Bonus ($16000) and LRP). His DA Form 3286-66 (Statement of Understanding) shows he enlisted for the U.S. Army Cash Bonus ($16000) and the LRP. He enlisted in the Regular Army on
20 January 2000 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-4. The applicant also stated that he is scheduled to be discharged on 19 January 2004.
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 ISAC Alternative Loan does not qualify for repayment under the LRP. The Alternative Loan Program is considered a private loan and 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.
On 9 October 2001, a copy of the advisory opinion was provided to the applicant for comment and possible rebuttal. He responded with a letter of rebuttal on
29 October 2001. In summary, the applicant states that he was improperly counseled as to the coverage of the LRP prior to his enlistment into military service and that the Army would create a “fundamentally injustice situation” by refusing to cover the ISAC Alternative Loan under the LRP. He contends that his promissory note and all relevant paperwork was provided, reviewed and accepted as being covered under the LRP by the Denver, Colorado, Military Entrance Processing Station and at the reception battalion at Fort Leonard Wood, Missouri. He goes on to state that the LRP is one of the main reasons he enlisted into the Army and that by failing to honor its promise to him the Army will be disrespecting itself, its soldiers, and the principle of integrity that has been a driving force throughout the Army’s history.
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 Loan Repayment Program. However, evidence of record shows that the applicant’s ISAC Alternative 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. 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.
3. 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
GP_____ DJ______ REB_____ DENY APPLICATION
| CASE ID | AR2001060686 |
| SUFFIX | |
| RECON | |
| DATE BOARDED | 20020326 |
| 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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