| Mr. Carl W. S. Chun | Director | |
| Ms. Wanda L. Waller | Analyst |
| Mr. John N. Slone | Chairperson | |
| Mr. Thomas Lanyi | Member | |
| Mr. Bernard P. Ingold | Member |
APPLICANT REQUESTS: In effect, that the Army repay a student loan under the Loan Repayment Program (LRP).
APPLICANT STATES: In effect, that due to financial problems he spoke with a recruiter regarding the incentive programs offered by the Army. He contends that he explained his financial circumstances to a recruiter and was offered a $16,000 cash bonus and was informed that the LRP would pay off of 1/3 per year or $1500, whichever was greater, of all of his college loans. He goes on to state that the recruiter assured him that his loan would be covered under the LRP. He states that he received his bonus as promised but he has been trying diligently since November 2000 to get enrolled in the LRP. He also claims that he was informed that the LRP does not cover his particular type of loan in August 2002. He further states that he contacted his legal office and was informed that his only options were to appeal the decision by the LRP people or to file for separation under the defective enlistment clause (Army Regulation 635-200, paragraph
7-16). In support of his application, he submits a letter, dated 24 September 2002; a letter, dated 13 August 2002, from the Chief, Education Incentives and Counseling Branch at U.S. Total Army Personnel Command; a DD Form 2475 (DOD Educational Loan Repayment Program Annual Application), dated 1 July 2002; and copies of his enlistment contract.
EVIDENCE OF RECORD: The applicant's military records show:
In 1997, the applicant applied for and received a student loan from the American Education Services 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.
Item 34 (Recertification by Applicant and Correction of Data at the Time of Active Duty Entry) on the applicant's DD Form 1966/3 (Record of Military Processing - Armed Forces of the United States) shows the LRP was added to item 32a (Specific Option/Program Enlisted For).
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 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.”
The applicant enlisted in the Regular Army on 22 January 2000 for a period of
4 years.
At the time the applicant submitted his application to the Army Board for Corrections of Military Records, he was serving on active duty in pay grade E-4.
The applicant provided a letter, dated 13 August 2002, from the Chief, Education Incentives and Counseling Branch, U.S. Total Army Personnel Command. This letter indicates that the applicant’s student loan from American Education Services does not qualify for repayment under the LRP. This letter further states that this loan is an Extra/Private Loan, which was not made, insured, or guaranteed under Title IV, Part B, D, or E of the Higher Education Act. He was advised to apply to this Board if he believed he was improperly counseled or that an error or injustice had occurred.
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 of 1965, or William D. Ford Loan. 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. The Government will not make any payments to the soldier or reimburse a soldier if he or she pays off a student loan. The Government will only pay the lending institution.
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 Board considered the applicant's contention that the recruiter assured him that his loan would be covered under the LRP. However, the applicant has provided no evidence to support this contention.
2. The Board also considered the applicant’s DA Form 3286-66, Section 4, item a which 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.”
3. 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.
4. 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.
5. 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
JNS_____ TL______ BPI_____ DENY APPLICATION
| CASE ID | AR2002079610 |
| SUFFIX | |
| RECON | |
| DATE BOARDED | 20030429 |
| TYPE OF DISCHARGE | |
| DATE OF DISCHARGE | |
| DISCHARGE AUTHORITY | |
| DISCHARGE REASON | |
| BOARD DECISION | DENY |
| REVIEW AUTHORITY | |
| ISSUES 1. | 112.1200 |
| 2. | |
| 3. | |
| 4. | |
| 5. | |
| 6. |
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