RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:           26 February 2004
      DOCKET NUMBER:   AR2003090469


      I certify that hereinafter is recorded the true and complete record
of the proceedings of the Army Board for Correction of Military Records in
the case of the above-named individual.

|     |Mr. Carl W. S. Chun               |     |Director             |
|     |Mr. Robert J. McGowan             |     |Analyst              |


  The following members, a quorum, were present:

|     |Mr. Arthur A. Omartian            |     |Chairperson          |
|     |Mr. John T. Meixell               |     |Member               |
|     |Ms. Mae M. Bullock                |     |Member               |

      The applicant and counsel if any, did not appear before the Board.

      The Board considered the following evidence:

      Exhibit A - Application for correction of military records.

      Exhibit B - Military Personnel Records (including advisory opinion,
if any).

THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE:

1.  The applicant requests payment of all of his college student loans.  In
effect, he is asking that a signature loan in the amount of $4,179.42 be
paid under the provisions of the loan repayment program (LRP).

2.  The applicant states, in effect, that his recruiter told him that his
college student loans would be paid to a limit of $65,000.

3.  The applicant provides:

      a.  A copy of a 2-page attachment to his application wherein he
explains his request and the rationale for it.

      b.  A copy of a signature education loan document for $4,000.00.

      c.  A copy of DD Form 2366 (Montgomery GI Bill (MGIB) Act of 1984),
dated 15 March 2002.

      d.  A copy of DA Form 3286-64 (Statement for Enlistment – United
States Army Station/Unit/Command/Area Enlistment Option), dated 30 April
2002.

      e.  A copy of DA Form 3286-59 (Statement for Enlistment – United
States Army Enlistment Program – US Army Delayed Enlistment Program), dated
15 March 2002.

      f.  A copy of USAREC Form 1150-R-E (Statement of Understanding – Army
Policy), dated 15 March 2002.

      g.  A copy of DD Form 1966/3 (Record of Military Processing), dated
13 March 2002.

CONSIDERATION OF EVIDENCE:

1.  The applicant entered the Delayed Enlistment Program on 15 March 2002.
His DA Form  3286-66 (Statement of Understanding, United States Army
Incentive Enlistment Program) shows that he enlisted for the Loan Repayment
Program (LRP) for an amount not to exceed $65,000.  On this form, he
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.

2.  The applicant's DA Form 3286-59 (Statement for Enlistment, United
States Army Enlistment Program, U. S. Army Delayed Enlistment Program)
shows that he would present to enlistment officials, among other documents,
"promissory notes."

3.  The applicant enlisted in the Regular Army on 30 April 2002.  Prior to
entry on active duty he had obtained a Stafford Loan in the amount of
$2,625.00, a Perkins Loan in the amount of $1,375.00, and a Signature
Education Loan (loan holder – SALLIE MAE) in the amount of about $4,000.00.

4.  By letter dated 2 April 2003, the US Total Army Personnel Command
(PERSCOM) notified the applicant that his Signature Education Loan from
SALLIE MAE was not made, insured, or guaranteed under Title IV Part B, D,
or E of the Higher Education Act.  He was informed the loan, therefore, did
not qualify for repayment under the LRP.

5.  The LRP is a Department of the Army enlistment option authorized by
Public Law 99-145.  Loans that qualify for repayment under the LRP 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.  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.

6.  In the processing of this case, an advisory opinion was obtained from
the PERSCOM Education Incentives and counseling Branch which states that,
as the applicant was previously told, the documentation which he provided
relative to his Signature Student Loan did not qualify that loan for
repayment.  The opinion cited DA Form 3286-66, Section 4a, which stated “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.”  The
applicant initialed that statement and signed and dated the form.  The
PERSCOM recommended the request be denied.

7.  The applicant was provided a copy of the PERSCOM advisory opinion and
his parents (co-signers of the Signature Student Loan) responded in a 3-
page letter dated 1 December 2003.  They reiterated that the applicant’s
recruiter stated that the Army would pay up to $65,000.00 of the
applicant’s student loans and that nothing was said about the loans having
to “qualify.”

DISCUSSION AND CONCLUSIONS:

1.  The evidence of record shows that the applicant enlisted for the LRP
incentive.  He had obtained several student loans prior to his entry on
active duty and they were not in default prior to his entry on active duty.


2.  When he requested payment of his loans, the PERSCOM noted that one of
his loans did not fall under the requirements of Title IV, Part B or E of
the Higher Education Act of 1965 to qualify for repayment under the LRP.
That loan was determined to be nonqualifying and the PERSCOM declined
repayment of it.

3.  There is an initialed and signed document (DA Form 3286-66) in the
applicant’s records that categorically states only qualifying loans would
be repaid. The applicant has not shown that his recruiter misled him into
believing that all of his loans would be repaid.

BOARD VOTE:

________  ________  ________  GRANT RELIEF

________  ________  ________  GRANT FORMAL HEARING

__aao___  __jtm___  __mmb___  DENY APPLICATION

BOARD DETERMINATION/RECOMMENDATION:

The evidence presented does not demonstrate the existence of a probable
error or injustice.  Therefore, the Board determined that the overall
merits of this case are insufficient as a basis for correction of the
records of the individual concerned.




                 Arthur A. Omartian
            ______________________
                    CHAIRPERSON



                                    INDEX

|CASE ID                 |AR2003090469                            |
|SUFFIX                  |                                        |
|RECON                   |                                        |
|DATE BOARDED            |20040226                                |
|TYPE OF DISCHARGE       |                                        |
|DATE OF DISCHARGE       |                                        |
|DISCHARGE AUTHORITY     |                                        |
|DISCHARGE REASON        |                                        |
|BOARD DECISION          |DENY                                    |
|REVIEW AUTHORITY        |                                        |
|ISSUES         1.       |103.0100                                |
|2.                      |112.1200                                |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |