| Mr. Carl W. S. Chun | Director | |
| Mr. W. E. Schnupp | Analyst |
| Mr. Fred N. Eichorn | Chairperson | |
| Mr. Melvin H. Meyer | Member | |
| Ms. Barbara J. Ellis | Member |
APPLICANT REQUESTS: Repayment of his student loan under the Loan Repayment Program (LRP).
APPLICANT STATES: That while attending the University of Phoenix prior to his entry on active duty, he applied for and received a PLATO Education Loan. He contends that the loan was for paying his educational expenses only. In fact, he says, after the University of Phoenix took the money it was due, he could account for all of the money from the loan, except $48.00. Since the loan was used to pay his education expenses only, he believes it should qualify for repayment under the LRP.
In support of his request, he submits a copy of his DoD Educational Loan Repayment Annual Application, a copy of the Tuition Loan Application & Promissory Note for his PLATO Education Loan, and a copy of a 6 June 2001 letter from the US Total Army Personnel Command (PERSCOM), Education Incentives Branch, denying his request for repayment of his PLATO Education Loan under the LRP.
EVIDENCE OF RECORD: The applicant's military records show:
He enlisted in the Regular Army for 4 years on 6 July 2000 in the grade of private first class. The record shows that he enlisted for the LRP and cash bonus. He is currently on active duty stationed in Korea.
The applicant’s DoD Educational Loan Repayment Annual Application (DD Form 2475) shows that the type of loan he requested was “private - unsecured.” The unpaid principal balance, as of April 2001, was $10,603.65.
PERSCOM’s denial of his request to use the LRP to repay his education loan was premised on the fact that the loan did not meet the eligibility criteria for repayment. Such loans must be made, insured or guaranteed under the Higher Education Act. The applicant’s loan, as indicated by his DD Form 2475, was a private unsecured loan not eligible for payment.
Title 10, U.S. Code, section 2171, limits loans that are eligible for repayment under the LRP to those made, insured, or guaranteed under the Higher Education Act of 1965
The LRP is an educational enlistment incentive, which provides that the government will repay a designated portion, (33 1/3 percent or $1,500.00 of the unpaid principal of eligible student loans for each year of active duty a soldier completes) provided such loan was made, insured or guaranteed as indicated above.
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 PLATO Education Loan was not eligible for payment under the LRP inasmuch as it was not made, insured or guaranteed under the Higher Education Act.
2. Furthermore, while the loan may have been used exclusively for educational needs, it was clearly indicated on the loan application that it was a private unsecured loan, which could have been used for any purpose, therefore, did not meet the criterion for payment under the LRP.
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 satisfies 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:
___fne__ ____mhm ____bje__ GRANT
________ ________ ________ GRANT FORMAL HEARING
________ ________ ________ DENY APPLICATION
| CASE ID | AR2001062633 |
| SUFFIX | |
| RECON | YYYYMMDD |
| DATE BOARDED | 20011018 |
| TYPE OF DISCHARGE | (HD, GD, UOTHC, UD, BCD, DD, UNCHAR) |
| DATE OF DISCHARGE | YYYYMMDD |
| DISCHARGE AUTHORITY | AR . . . . . |
| DISCHARGE REASON | |
| BOARD DECISION | (DENY) |
| REVIEW AUTHORITY | |
| ISSUES 1. 103.00 | |
| 2. | |
| 3. | |
| 4. | |
| 5. | |
| 6. |
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