| Mr. Carl W. S. Chun | Director | |
| Ms. Wanda L. Waller | Analyst |
| Ms. Celia L. Adolphi | Chairperson | |
| Ms. Barbara J. Ellis | Member | |
| Mr. Donald P. Hupman | Member |
APPLICANT REQUESTS: In effect, that the Army repay a student loan under the Loan Repayment Program (LRP).
APPLICANT STATES: In effect, that he was not properly informed of which loans would qualify under the Army LRP and which loans would not. He states that his recruiter did not inform him that this student loan did not qualify under the Army LRP. He contends that at the time of his enlistment the Army LRP weighed heavily on his decision to enlist. He also contends that he was not informed of a specific reason for disqualifying loans other than default status. He states that the student loan in question was not and is not in default and this loan does not exceed $65,000. He contends that these were the only guidelines he was given. In support of his application, he submits a letter, dated 17 December 2001, from the Chief, Education Incentives and Counseling Branch; an application for a 1999-2000 student loan, dated 12 January 1999; and a DD Form 2475 (DOD Educational Loan Repayment Program (LRP) Annual Application, dated
20 November 2001.
EVIDENCE OF RECORD: The applicant's military records show:
In December 1998, the applicant applied for and received a student loan from the Sigma Alpha Epsilon Foundation 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.
The applicant entered the delayed entry program on 15 August 2000. His DA Form 3286-59 (Statement for Enlistment) shows that he enlisted for the U.S. Army Incentive Enlistment Program (Cash Bonus ($8000) and LRP). His DA Form 3286-66 (Statement of Understanding) shows he enlisted for the U.S. Army Cash Bonus and the LRP. He enlisted in the Regular Army on 26 October 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’s DA Form 3286-66, Section 4, item 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 1975 (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.”
The applicant provided a letter, dated 17 December 2001, from the Chief, Education Incentives and Counseling Branch, U.S. Total Army Personnel Command. This letter states “Individuals enlisting with LRP as a part of their enlistment contract must meet certain eligibility criteria. Part of the eligibility criteria is to have loans that qualify under the LRP. Loans eligible for repayment under the LRP are Stafford, Perkins, Parent Loans for Undergraduate Students, Supplemental loans, or any loan made insured or guaranteed under the Higher Education Act, Title IV, Part B, D, or E. In addition, 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 to the law.” This letter indicates that the applicant’s student loan does not quality for repayment under the LRP. This letter further points out that the applicant’s student loan through the Sigma Alpha Epsilon Foundation was not made, insured or guaranteed under Title IV Part B, D, or E of 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, D or E of the Higher Education Act. 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’s contention that he was not properly informed of which loans would qualify under the Army LRP and which loans would not, is not supported by the evidence of record. His DA Form 3286-66, Section 4, item 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 1975 (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.”
2. The applicant did enlist for the Loan Repayment Program. However, evidence of record shows that the applicant’s student loan was not made, insured, or guaranteed under Title IV, Part B, D, or E of the Higher Education Act. Therefore, payment cannot be made toward this 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
CLA____ BJE_____ DPH_____ DENY APPLICATION
| CASE ID | AR2002068523 |
| SUFFIX | |
| RECON | |
| DATE BOARDED | 20020613 |
| TYPE OF DISCHARGE | |
| DATE OF DISCHARGE | |
| DISCHARGE AUTHORITY | |
| DISCHARGE REASON | |
| BOARD DECISION | (GRANT) |
| REVIEW AUTHORITY | |
| ISSUES 1. | 112.1200 |
| 2. | |
| 3. | |
| 4. | |
| 5. | |
| 6. |
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