| Mr. Carl W. S. Chun | Director | |
| Mr. Edmund P. Mercanti | Analyst |
| Mr. Raymond V. O'Connor, Jr. | Chairperson | |
| Ms. Barbara J. Ellis | Member | |
| Ms. Karen A. Heinz | Member |
APPLICANT REQUESTS: That he be reimbursed for the payments he made on his student loans.
APPLICANT STATES: He continued to pay his student loans since the Army failed to pay them as promised in his Loan Repayment Program (LRP) enlistment addendum. The applicant outlines what he has done to attempt to get his loans paid under the LRP.
In support of his request the applicant submits documents showing that he was making payments on his student loans prior to his enlistment, and continued making those payments after his enlistment.
EVIDENCE OF RECORD: The applicant's military records show:
He enlisted in the Regular Army on 25 May 1999 for 3 years. In conjunction with his enlistment he was given a $6,000.00 cash bonus and the LRP. In the DA Form 3286-66, Statement of Understanding United States Army Incentive Enlistment Program, he completed, he acknowledged that, “Repayment will be made only after each successful year of active duty that I perform commencing on the date of my enlistment in the Regular Army. I fully understand that I must secure a military deferment or maintain my account in good standing until such time as repayment is started.”
The applicant was awarded the military occupational specialty of infantryman, was promoted to pay grade E-4, and was honorably released from active duty at the expiration of his term of service on 24 May 2002.
The LRP provides for the repayment by the Government of a designated portion of any outstanding student loan(s) of a soldier who enlists for this option. The loan amount to be repaid is 33 1/3 percent of the original balance of the loan plus accrued interest not paid by the Department of Education, or $1,500.00 plus the accrued interest not paid by the Department of the Education, whichever is greater. Each complete satisfactory year of service performed under this LRP agreement establishes an anniversary date. By law (title 10, U.S. Code, section 2171), the Government cannot reimburse a soldier if he or she makes payments on a student loan. The Government can only pay the lending institution.
DISCUSSION: Considering all the evidence, allegations, and information presented by the applicant, together with the evidence of record and applicable law and regulations, it is concluded:
1. By law, the Army can only make payments to a lending institution under the LRP. As such, the Army cannot reimburse the applicant for the portion of his student loans that he paid after his enlistment.
2. In addition, there is no evidence that the applicant applied for a military deferment on his student loans as required by his LRP addendum. If he had done that, the Army would have been able to pay for all of his student loans.
3. While the applicant states that he attempted to get his loans paid under the LRP in a timely manner, he has not submitted any evidence showing that he submitted his loans for payment on the first anniversary date of his enlistment.
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
___bje __ ___kah __ ___rvo__ DENY APPLICATION
| CASE ID | AR2002075340 |
| SUFFIX | |
| RECON | YYYYMMDD |
| DATE BOARDED | 20021024 |
| 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. | 128.05 |
| 2. | |
| 3. | |
| 4. | |
| 5. | |
| 6. |
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