| Mr. Carl W. S. Chun | Director | |
| Ms. Joyce A. Wright | Analyst |
| Mr. George Paxson | Chairperson | |
| Ms. Deborah Jacobs | Member | |
| Mr. Ronald E. Blakely | Member |
APPLICANT REQUESTS: In effect, that the Army repay his student loan.
APPLICANT STATES: That his loan was a supplemental loan and not a private loan which was used for tuition at Heidelberg College. In support of his application, he submits a copy of a letter from the US Total Army Personnel Command (PERSCOM), Education Incentives and Counseling Branch, a copy of his DD Form 2475 (DOD Educational Loan Repayment Program (LRP) Annual Application), a copy of his Military Credit Reference Report, a copy of his promissory note, and several documents pertaining to his student loan.
EVIDENCE OF RECORD: The applicant's military records show he enlisted
on 14 September 2000, as a signal support systems specialist (31U) for a period
of 4 years. He continues to serve and is presently assigned in Germany.
The applicant’s records contain a copy of a DD Form 2366 (Montgomery GI Bill Act of 1984 (MGIB)), dated 14 September 2000, which was authenticated in his own hand, and shows the entry, “I DO NOT desire to participate in the MGIB. I understand that I WILL NOT be able to enroll at a later date.”
The applicant’s DA Form 3286-66, item 1(a) shows that the applicant enlisted
for the LRP. Item 4 shows the entry, “I understand that I must DISENROLL from the GI Bill in order to qualify for this program. DISENROLLMENT MUST BE ACCOMPLISHED at the time I enter on active duty. If I fail to complete the disenrollment portion of the DD Form 2366, I will not be eligible for the LRP and will become automatically enrolled in the GI Bill.”
Item 4(a) states “I understand that under this program (LRP) 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. Not to exceed 65,000.”
The applicant provided a copy of his promissory note and several documents
pertaining to his student loan.
The applicant provided a copy of a letter from PERSCOM, Education Incentives and Counseling Branch, dated 12 July 2001. The letter was written in regards to
his DD Form 2475, which was recently received from the Sallie Mae Servicing Corporation (SMSC). The letter stated that individuals enlisting with the LRP as part of their contract must meet certain standards. Loans that qualify under the LRP include Stafford, Perkins, Parent Loans for Undergraduate Students, Supplemental loans, or any loan made, insured, or guaranteed under the Higher
Education Act of 1965, Title IV, Part B, D, or E. In addition, Public Law 99-145, Section 671-(a)(1), states that loans eligible for repayment must have been made, insured, or guaranteed before the soldier enters on active duty. Payment toward loans that do not qualify under the LRP would be in violation of the law governing this program. There are no exceptions. The letter also stated that
after reviewing the applicant’s DD Form 2475 from the SMSC, it was determined that his loan did not qualify for repayment under the LRP. It was also determined that his loan was a Private Loan, which was not made, insured, or guaranteed under Title IV, Par B, D, or E of the Higher Education Act of 1965.
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 Loans 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 Loans. 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.
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 evidence of record shows that the applicant enlisted under the LRP and
acquired a student loan prior to his entry on active duty. The evidence of record also notes that the applicant signed his addendum to his MGIB Enlistment Contract attesting to the fact that he was disenrolled from the MGIB.
2. The Board notes that Chief, Education Incentives Counseling Branch, received a copy of the applicant’s DD Forms 2475 from the SMSC. However, upon receipt of his DD Form 2475, the Chief, Education Incentives Counseling Branch, determined that the applicant’s loan did not qualify for repayment under the LRP. The Board also notes that the applicant’s DD Form 2475 indicated that the applicant’s loan was a Private Loan, which was not made, insured, or guaranteed under Title IV, Part B, D, or E of the Higher Education Act. Therefore, the Army is not authorized to repay the applicant’s student loan.
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
__gp___ __dj___ ___rb_____ DENY APPLICATION
| CASE ID | AR2001061238 |
| SUFFIX | |
| RECON | |
| DATE BOARDED | 20020326 |
| TYPE OF DISCHARGE | |
| DATE OF DISCHARGE | Active duty |
| DISCHARGE AUTHORITY | |
| DISCHARGE REASON | |
| BOARD DECISION | DENY |
| REVIEW AUTHORITY | |
| ISSUES 1. 1026 | |
| 2. | |
| 3. | |
| 4. | |
| 5. | |
| 6. |
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