| Mr. Carl W. S. Chun | Director | |
| Ms. Joyce A. Wright | Analyst |
| Ms. Gail J. Wire | Chairperson | |
| Mr. Robert Duecaster | Member | |
| Ms. Karen A. Heinz | Member |
APPLICANT REQUESTS: In effect, that the Army repay his student loan.
APPLICANT STATES: That when he signed his contract, he was led to believe that each year 1/3 of his loans would be paid (excluding interest). However, after his first year in service, he discovered that his American Education Loan would not be paid. He now feels that this is unjust and misleading, possibly a breach of contract. In support of his application, he submits a copy of a promissory note and several documents pertaining to his student loan.
EVIDENCE OF RECORD: The applicant's military records show he enlisted in the Regular Army on 5 March 2002, as a light weapons infantryman (11X) for a period of 4 years. He continues to serve and is presently assigned to Fort Stewart, Georgia.
The applicant's DD Form 1966/1 (Record of Military Processing-Armed Forces of the United States) shows that he enlisted for a period of 4 years.
The applicant’s DA Form 3286-66, item 1(a) shows that the applicant enlisted
for the Loan Repayment Program (LRP).
Item 4(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.
Item 4(b) states "Enlistment for the LRP ensures me, provided I meet and maintain the prescribed prerequisites, that the portion or amount of loan that may be repaid is 33 1/3 percent or $1,500, whichever is greater, of the unpaid principal balance for each year of service completed."
The applicant provided a copy of a letter from PERSCOM, Education Incentives and Counseling Branch, dated 23 January 2003. The letter was written in regards to his DD Form 2475 (DOD Education LRP Annual Application), which was recently received from the American Education Services (AES). The letter stated that individuals enlisting with the LRP as part of their contract must meet certain standards. 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.
The letter further stated that, based on information provided by AES, it was determined that his loans did not qualify for repayment under the LRP. As indicated on his DD Form 2475, his loans were GATE/Private Loans, which were not made, insured or guaranteed under Title IV Part B, D, or E of the Higher Education Act. If the applicant felt that he was not properly counseled or an error or injustice has occurred, he may apply to this Board for relief.
The applicant has been approved for repayment of two authorized student loans. One is a Perkins Loan with a remaining unpaid principal balance of $3,450 and the other is a Consolidated Loan for $11,911.09. To date $5,120.36 has been paid by the Army.
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. 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. Public Law 99-145, Section 671(a)(1) precludes the authorization of payments toward interest or the reimbursement of payments made. There are no exceptions to the law.
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 evidence of record shows that the applicant enlisted under the LRP and
acquired student loans prior to his entry on active duty.
2. The Board notes that the Chief, Education Incentives Counseling Branch received a copy of the applicant’s DD Form 2475 from the AES. However, upon receipt of his DD Form 2475, the Chief, Education Incentives Counseling Branch, determined that the applicant’s loan did not qualify for repayment under the LRP. The Board also notes that the applicant’s DD Form 2475 indicated that the applicant’s loan were GATE/Private loans which were not made or, insured or guaranteed under Title IV Part B, D, or E of the her Education Act. Therefore, the Army is not authorized to repay the applicant’s student loan.
3. 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.
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
__gw___ __rd___ ___kh___ DENY APPLICATION
| CASE ID | AR2003087303 |
| SUFFIX | |
| RECON | |
| DATE BOARDED | 20030731 |
| TYPE OF DISCHARGE | |
| DATE OF DISCHARGE | |
| DISCHARGE AUTHORITY | |
| DISCHARGE REASON | |
| BOARD DECISION | DENY |
| REVIEW AUTHORITY | |
| ISSUES 1. | 1026 |
| 2. | |
| 3. | |
| 4. | |
| 5. | |
| 6. |
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