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ARMY | BCMR | CY2002 | 2002075340C070403
Original file (2002075340C070403.rtf) Auto-classification: Denied
MEMORANDUM OF CONSIDERATION


         IN THE CASE OF:
        


         BOARD DATE: 24 October 2002
         DOCKET NUMBER: AR2002075340

         I certify that hereinafter is recorded the record of consideration of the Army Board for Correction of Military Records in the case of the above-named individual.

Mr. Carl W. S. Chun Director
Mr. Edmund P. Mercanti Analyst


The following members, a quorum, were present:

Mr. Raymond V. O'Connor, Jr. Chairperson
Ms. Barbara J. Ellis Member
Ms. Karen A. Heinz Member

         The Board, established pursuant to authority contained in 10 U.S.C. 1552, convened at the call of the Chairperson on the above date. In accordance with Army Regulation 15-185, the application and the available military records pertinent to the corrective action requested were reviewed to determine whether to authorize a formal hearing, recommend that the records be corrected without a formal hearing, or to deny the application without a formal hearing if it is determined that insufficient relevant evidence has been presented to demonstrate the existence of probable material error or injustice.

         The applicant requests correction of military records as stated in the application to the Board and as restated herein.

         The Board considered the following evidence:

         Exhibit A - Application for correction of military
records
         Exhibit B - Military Personnel Records (including
         advisory opinion, if any)


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



                  Carl W. S. Chun
                  Director, Army Board for Correction
of Military Records




INDEX

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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