| Mr. Carl W. S. Chun | Director | |
| Mr. Edmund P. Mercanti | Analyst |
| Mr. Luther L. Santiful | Chairperson | |
| Mr. Lester Echols | Member | |
| Mr. Frank C. Jones, II | Member |
APPLICANT REQUESTS: That he be reimbursed for the money he paid towards his student loans.
APPLICANT STATES: In a letter to his elected representative, that he enlisted for the Loan Repayment Program (LRP). However, he was required to pay a portion of his student loans to keep his loans from going into default, despite the promise by the Army to pay his loans. This has resulted in the Army paying $2,500.00 in loans, and him paying $2,171.72 in loans. He has attempted to rectify the situation through his chain of command and with direct contact with the Defense Finance and Accounting Service, to no avail.
EVIDENCE OF RECORD: The applicant's military records show:
He enlisted in the Regular Army on 25 May 1999. In conjunction with his enlistment, he was given a $6,000.00 cash bonus and the LRP.
He was awarded the military occupational specialty of infantryman and was promoted to pay grade E-4.
He successfully completed his enlistment and was honorably released from active duty on 24 May 2002.
The LRP provides for the repayment by the Government of a designated portion of any outstanding student loan(s) secured after 1 October 1975. By law (Title 10, U.S. Code, section 2171), the Government cannot pay any loans which weren’t made or insured under the Higher Education Act of 1965, and the Government cannot reimburse soldiers for any money they pay to satisfy their loans. The statute limits LRP payments to qualifying lending institutions.
In the processing of this case, the staff of the Board contacted the Total Army Personnel Command (PERSCOM) to determine why a portion of the applicant’s student loans weren’t paid. The PERSCOM stated that it paid all of the loans that were submitted for payment. The PERSCOM added that it received the loans from the lender on 26 March 2002, and paid the loans on 19 April 2002.
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. Title 10, U.S. Code, section 2171, prohibits the reimbursement of funds to individuals under the LRP.
2. In addition, the applicant does not explain why he was forced to pay a portion of his student loans. However, it would appear that the lender demanded payments from the applicant when the Army did not make payments. This assumption is based on the time that passed between the date of the applicant’s enlistment (25 May 1999) and the date the PERSCOM received a request for payment from his lender (26 March 2002).
3. Having made this assumption, in the absence of evidence to the contrary, the Board must presume that the applicant failed to submit a request to pay his student loans in a timely manner. Without evidence to show that circumstances which would constitute an error or injustice caused the delay in the applicant’s submission of his student loans, 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
___fcj ___ ___lls ___ ___le ___ DENY APPLICATION
| CASE ID | AR2002082708 |
| SUFFIX | |
| RECON | YYYYMMDD |
| DATE BOARDED | 20030529 |
| 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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