MEMORANDUM OF CONSIDERATION


         IN THE CASE OF:
        


         BOARD DATE: 17 June 2003
         DOCKET NUMBER: AR2002081588

         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
Ms. Wanda L. Waller		Analyst

The following members, a quorum, were present:

Mr. Fred N. Eichorn		Chairperson
Mr. Hubert O. Fry		Member
Ms. Marla J. Troup		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)

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APPLICANT REQUESTS: In effect, that the Army repay two student loans under the Loan Repayment Program (LRP).

APPLICANT STATES: In effect, that upon entering active duty on 14 November 2001 she was given no information by her recruiter in reference to the LRP. She contends that she was simply told that the program covered all student loans. She also contends that while she was in processing she noticed that the Sallie Mae portion of her student loan paperwork was not in the packet and that the information had been taken out or misplaced. She claims that she was then told that the Sallie Mae loan would be covered, to get all of the information together again to include copies of the promissory notes and fax them to the address for the LRP.

In support of her application, she submits a letter of explanation, dated
5 November 2002; two pages of handwritten notes/instructions pertaining to promissory notes; a letter, dated 6 December 2001; a Sallie Mae Truth in Lending Disclosure, dated 19 October 1999; a Signature Education Loan Program from Sallie Mae loan application, dated 5 October 1999; a Sallie Mae Truth in Lending Disclosure, dated 21 August 1999; a Signature Education Loan Program from Sallie Mae loan application, dated 24 May 1999; a document titled "Loan Repayment Program (LRP) Inprocessing Counseling"; a letter, dated
16 October 2002, from the Chief, Education Incentives and Counseling Branch; and two DD Forms 2475 (DOD Educational Loan Repayment Program (LRP) Annual Application), dated 3 October 2002.

EVIDENCE OF RECORD: The applicant's military records show:

In 1999, the applicant applied for and received two student loans from the Sallie Mae Servicing Corps for educational purposes. There is no evidence in the available records which shows that these loans were made, insured, or guaranteed under Title IV, Part B, D, or E of the Higher Education Act.

The applicant entered the Delayed Enlistment Program on 14 January 2001. Her DA Form 3286-59 (Statement for Enlistment, United States Army Enlistment Program, U.S. Army Delayed Enlistment Program) shows that she enlisted for the U.S. Army Incentive Enlistment Program (Loan Repayment up to $65,000). Her USAREC Form 1150-R-E (Statement of Understanding) also shows that she enlisted for the LRP. On this form, she acknowledged that she must bring copies of all of her student loan promissory notes when she reports to the Military Entrance Processing Station for her active duty ship date.




The available records do not contain the applicant's DA Form 3286-66 (Statement of Understanding, United States Army Incentive Enlistment Program) which would show that the applicant acknowledged that under the LRP the Government would repay a designated portion of any loan she incurred that was made, insured or guaranteed under Part B of the Higher Education Act of 1965 or any loan under Part E of such act after 1 October 1975 and before she enlisted into the Regular Army.

The applicant enlisted in the Regular Army on 14 November 2001 for a period of 4 years.

At the time the applicant submitted her application to the Army Board for Correction of Military Records, she was serving on active duty in pay grade E-4.

The applicant provided a letter, dated 16 October 2002, 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, 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 loans do not qualify for repayment under the LRP. This letter further points out that the applicant’s loans are Private Loans, which are 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.

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.
 
Army Regulation 635-200 sets forth the basic authority for the separation of enlisted personnel from the Regular Army. Chapter 7, section IV discusses defective or unfulfilled enlistment or reenlistment agreements. It states that an enlisted soldier will be discharged when a defective enlistment or reenlistment agreement exists under three circumstances. One circumstance is when a material misrepresentation is made by recruiting or retention personnel on which the soldier reasonably relied and thereby was induced to enlist or reenlist with a commitment for which the soldier was not qualified. An unfulfilled enlistment commitment exists when the soldier received a written enlistment commitment from recruiting personnel for which the soldier was qualified but which cannot be fulfilled by the Army and the soldier did not knowingly take part in the creation of the unfulfilled enlistment commitment.

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 her recruiter told her that the LRP covered all student loans. However, the applicant has provided no evidence to support this contention.

2. Evidence of record shows that the applicant’s loans were not made, insured, or guaranteed under Title IV, Part B, D, or E of the Higher Education Act. Therefore, payment cannot be made toward these loans.

3. The applicant has the option of requesting discharge due to a defective or unfulfilled enlistment agreement.

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

FNE____ HOF_____ MJT_____ DENY APPLICATION

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

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INDEX

CASE ID	AR2002081588
SUFFIX
RECON
DATE BOARDED	20030617
TYPE OF DISCHARGE
DATE OF DISCHARGE
DISCHARGE AUTHORITY
DISCHARGE REASON
BOARD DECISION	DENY
REVIEW AUTHORITY
ISSUES 1.	112.1200
2.
3.
4.
5.
6.