| Mr. Carl W. S. Chun | Director | |
| Ms. Joyce A. Wright | Analyst |
| Mr. Raymond V. O'Connor, Jr. | Chairperson | |
| Mr. Donald P. Hupman | Member | |
| Mr. Raymond J. Wagner | Member |
APPLICANT REQUESTS: That the Army repay his student loan.
APPLICANT STATES: In effect, that during his enlistment, he was informed that his loans would be repaid and that no additional information was provided to him pertaining to loan qualifications. He was also never informed in writing that his loans would have to qualify, or which loans would qualify, and that he is unable to repay his student loan. In support of his application, he submits copies of: several documents pertaining to his enlistment contract; a letter from the US Total Army Personnel Command (PERSCOM), Education Incentives and Counseling Branch; and a DD Form 2475 (Department of Defense (DOD) Educational Loan Repayment (LRP) Annual Application).
EVIDENCE OF RECORD: The applicant's military records show he enlisted
on 31 August 2000, as a medical equipment repairman (91A) for a period
of 6 years. He continues to serve and is presently assigned to the Company F, 187th Medical Battalion, Sheppard Air Force Base, Texas.
The applicant’s records contain a copy of a DD Form 2366 (Montgomery GI Bill Act of 1984 (MGIB)), dated 5 September 2000, which was authenticated in his own hand, and shows the entry, “91A Military Occupational Specialty (MOS) 6YRS ENL LOAN REP AND CASH BONUS.” It also 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 a letter from PERSCOM, Education Incentives and Counseling Branch, dated 21 June 2001. The letter was written in regards to his DD Form 2475, which was received from Norwich University (NU). The letter stated that individuals enlisting with the LRP as part of their contract must meet certain standards. Part of the eligibility criteria is to have loans that qualify under the LRP and that only certain loans qualify for repayment. Loans eligible for repayment under the LRP are Stafford, Perkins Loans for Undergraduate Students, Supplemental loans, or any loan covered under the Title IV, Part B, D, or E of the Higher Education Act of 1965. The letter also stated that Public Law 99-145, section 671(a)(1) confirms loans eligible for repayment must be made, insured, or guaranteed prior to entry 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. It was also determined that his loan did not qualify for repayment under LRP based on information provided by NU. The applicant has an Institutional Loan, which is not eligible under the LRP.
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 NU. 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 an Institutional 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
__ro___ ___dh__ ___rw_____ DENY APPLICATION
| CASE ID | AR2001063819 |
| SUFFIX | |
| RECON | |
| DATE BOARDED | 20020409 |
| 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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