| Mr. Carl W. S. Chun | Director | |
| Mrs. Nancy Amos | Analyst |
| Mr. Walter T. Morrison | Chairperson | |
| Mr. Curtis L. Greenway | Member | |
| Ms. Regan K. Smith | Member |
APPLICANT REQUESTS: Payment of her Sallie Mae Signature Education Loan in the approximate amount of $4,000.00.
APPLICANT STATES: That prior to enlisting in the Army she was informed that all her loans were going to be repaid. She turned in copies of all her promissory notes to her recruiter 5 or 6 months prior to her enlistment. She was told that all her loans met the requirements for repayment. After she enlisted she was informed that her Signature Education Loan was not eligible for repayment because it was a College Access Loan. She has a certified letter which specifically states that her loan is not a College Access Loan. The education incentive was a big reason for her entering the Army.
EVIDENCE OF RECORD: The applicant's military records show:
She entered the Delayed Entry Program on 25 February 2000. Her DA Form 3286-66, Statement of Understanding, United States Army Incentive Enlistment Program, shows that she enlisted for the Loan Repayment Program (LRP) up to a maximum repayment of $65,000. On this form, she acknowledged that under the LRP the Government would repay a designated portion of any loan she 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 she enlisted into the Regular Army.
The applicant enlisted in the Regular Army on 31 July 2000. Prior to entry on active duty she had obtained (on 12 November 1999) a Signature Education Loan from Sallie Mae in the amount of approximately $4,000.00. Sallie Mae provided the applicant with a letter stating that her account did not consist of any College Access Loans, it consisted of all educational loans.
On 21 June 2001, the U. S. Total Army Personnel Command (PERSCOM) notified the applicant that information received from the Sallie Mae Servicing Corporation indicated that her loan was a College Access Loan, which is not made, insured, or guaranteed under Title IV Part B, D, or E of the Higher Education Act.
On 17 October 2001, PERSCOM indicated that their 21 June 2001 letter was in error. Information received from the Sallie Mae Servicing Corporation had indicated that her loan was a signature education loan, a private loan. Still, however, the loan did not qualify for repayment under the Higher Education Act.
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.
The Government will not make any payments to the soldier or reimburse a soldier if he or she pays off a student loan. The Government will only pay the lending institution.
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 for the LRP incentive on 31 July 2000. She had obtained several student loans prior to her entry on active duty and they were not in default prior to her entry on active duty. It appears that all her loans except one Sallie Mae Signature Education loan meet the requirements for repayment under the Higher Education Act and the LRP.
2. The applicant states that she showed all her promissory notes to recruiting officials prior to her enlistment and that she was not informed that this one loan did not qualify for repayment under the LRP; however, she provides no evidence, such as a sworn statement or affidavit from her recruiter and/or guidance counselor, substantiating her contention. The Board believes that it would not be equitable to grant the relief requested in the absence of such substantiating evidence.
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
__wtm___ __clg___ __rks___ DENY APPLICATION
| CASE ID | AR2001061686 |
| SUFFIX | |
| RECON | |
| DATE BOARDED | 20020402 |
| TYPE OF DISCHARGE | |
| DATE OF DISCHARGE | |
| DISCHARGE AUTHORITY | |
| DISCHARGE REASON | |
| BOARD DECISION | (DENY) |
| REVIEW AUTHORITY | |
| ISSUES 1. | 112.12 |
| 2. | |
| 3. | |
| 4. | |
| 5. | |
| 6. |
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