| Mr. Carl W. S. Chun | Director | |
| Ms. Wanda L. Waller | Analyst |
| Ms. Joann Langston | Chairperson | |
| Ms. Jennifer L. Prater | Member | |
| Mr. Paul M. Smith | Member |
APPLICANT REQUESTS: In effect, that the Army repay a student loan under the Loan Repayment Program (LRP).
APPLICANT STATES: That both his recruiter and counselor at the Military Entrance Processing Station reviewed his loan paperwork and told him that his loan qualified for the LRP. In support of his application, he submits copies of his enlistment contract; a letter dated 30 October 2002, from the Chief, Education Incentives and Counseling Branch; a DD Form 2475 (DOD Education Loan Repayment Program (LRP) Annual Application), dated 17 September 2002; and a letter, dated 25 September 2002, from Citibank.
EVIDENCE OF RECORD: The applicant's military records show:
The applicant’s DA Form 3286-66 (Statement of Understanding) and his DD Form 1966/3 (Record of Military Processing - Armed Forces of the United States) show that he enlisted for the U.S. Army Training Enlistment Program and the LRP. The applicant enlisted in the Regular Army on 9 January 2002 for a period of 4 years.
At the time the applicant submitted his application to the Army Board for Correction of Military Records, he was serving on active duty in pay grade E-3.
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 1975 (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 provided a letter, dated 25 September 2002, from Citibank which states that his loan is not eligible for Department of Defense reimbursement.
The applicant also provided a letter, dated 30 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 loan does not qualify for repayment under the LRP. This letter further points out that the applicant’s loan is a CitiAssist Loan, which was 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 both his recruiter and counselor at the Military Entrance Processing Station reviewed his loan paperwork and told him that his loan qualified for the LRP. However, the applicant has provided no evidence to support this contention.
2. Evidence of record shows that the applicant’s 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 loan.
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
jl_______ jlp______ pms_____ DENY APPLICATION
| CASE ID | AR2002082912 |
| SUFFIX | |
| RECON | |
| DATE BOARDED | 20030603 |
| 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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