| Mr. Carl W. S. Chun | Director | |
| Mrs. Nancy L. Amos | Analyst |
| Mr. Fred N. Eichorn | Chairperson | |
| Ms. Margaret V. Thompson | Member | |
| Mr. Eric N. Andersen | Member |
APPLICANT REQUESTS: That his student loans be repaid.
APPLICANT STATES: That the student loan was part of his original enlistment contract. It was later retracted due to the loan being in default. He had already taken his first swearing in and felt that he had no choice but to continue with his enlistment even though the loan was not going to be paid.
EVIDENCE OF RECORD: The applicant's military records show:
He was born on 5 December 1961. He graduated from the University of Texas El Paso in December 1995. He entered the Delayed Entry Program on 11 December 1996.
A DA Form 3286-59 (Statement for Enlistment United States Army Enlistment Program U. S. Army Delayed Enlistment Program) provided by the applicant shows that he enlisted for the U. S. Army Airborne Training Enlistment Program and the U. S. Army Loan Repayment Program (LRP) Incentive Enlistment Program.
The DA Form 3286-59 on file in the applicant's Official Military Personnel File (OMPF) shows that the entry for the LRP was deleted and marked "void."
The applicant did not have a DA Form 3286-66 (Statement of Understanding, United States Army Incentive Enlistment Program) on file in his OMPF and he did not provide a copy of a DA Form 3286-66. This form would have indicated that the applicant acknowledged that under the LRP the government would repay a designated portion of any loan he 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 he enlisted into the Regular Army.
The applicant's DD Form 1966/3 (Record of Military Processing -- Armed Forces of the United States) indicated that he enlisted as an unverified student loan applicant and did not have a student loan that was not in default so the loan repayment was eliminated from his contract.
The applicant enlisted in the Regular Army on 17 January 1997 for 4 years in pay grade E-4.
On 16 January 2001, the applicant was honorably released from active duty, in pay grade E-5, upon completing his required active service.
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 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.
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.
In the processing of this case, an advisory opinion was obtained from the U. S. Army Reserve Personnel Command, which in turn obtained information from the U. S. Total Army Personnel Command (PERSCOM), Education Incentives and Counseling Branch. PERSCOM noted that before the Army can make any loan repayments, the soldier must provide a copy of his DA Form 3286-66 and DD Form 2366 (Montgomery GI Bill (MGIB) Act of 1984). A memorandum requesting these document was initially sent to the applicant on 9 June 1997. When no response was received, additional requests for information/documents were sent about every 6 months. The applicant never responded.
A copy of the advisory opinion was provided to the applicant for comment or rebuttal. He did not respond within the given time frame.
DISCUSSION: Considering all the evidence, allegations, and information presented by the applicant, together with the evidence of record, applicable law and regulations, and advisory opinion, it is concluded:
1. 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.
2. The applicant acknowledges that his student loan was in default prior to entering active duty. One of the eligibility requirements for repayment of student loans under the LRP is that the loans not be in default prior to entry on active duty.
3. The applicant could have requested discharge for a defective enlistment agreement. The Board believes that a reasonably prudent person would have inquired at the time he or she learned the student loans were not eligible for repayment about voiding the enlistment contract. The applicant was a 26-year old college graduate and there is no evidence to show he made such an inquiry.
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
__fne___ __mvt___ __ena___ DENY APPLICATION
| CASE ID | AR20020822348 |
| SUFFIX | |
| RECON | |
| DATE BOARDED | 20030715 |
| TYPE OF DISCHARGE | |
| DATE OF DISCHARGE | |
| DISCHARGE AUTHORITY | |
| DISCHARGE REASON | |
| BOARD DECISION | DENY |
| REVIEW AUTHORITY | Mr. Chun |
| ISSUES 1. | 112.12 |
| 2. | |
| 3. | |
| 4. | |
| 5. | |
| 6. |
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