RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:          24 FEBRUARY 2005
      DOCKET NUMBER:  AR20040001889


      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. Kenneth H. Aucock             |     |Analyst              |


      The following members, a quorum, were present:

|     |Ms. Yolanda Maldonado             |     |Chairperson          |
|     |Mr. Ronald Weaver                 |     |Member               |
|     |Mr. Jonathon Rost                 |     |Member               |

      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.  In effect, the applicant requests that the Army pay his alternative
student loan.

2.  The applicant states that he was not properly informed or counseled on
which loans qualified for payment under the loan repayment program (LRP).
He was under the impression that the loan in question would be paid, and
was not advised otherwise.  He has been on active duty since 26 July 2002
and signed the DD Form 3286-66 (Statement of Understanding) the same day,
with the understanding that his loans would be paid.  He recently received
a notice that the loan did not qualify for payment and that the Army would
not pay it.  He was advised that it was his responsibility to pay the loan.


3.  In an attached statement, the applicant stated that one of the reasons
that he enlisted was that the Army would pay his student loans.  He has
fulfilled his part of the contract, and believes that the Army should have
to make good on its part. If his alternative loan was not going to be paid,
he should have known about it     two years ago.  If someone was doing his
job at the MEPS (Military Entrance Processing Station) in Louisville when
he signed up, there would not be a problem today.  He was not properly
counseled on the matter to begin with.

4.  The applicant provides a copy of a DA Form 3286-66, a copy of his
letter to a financial institution concerning his student loan, a copy of an
application and promissory note for Federal Stafford Loans, a copy of a
notice of loan guarantee and disclosure statement for a subsidized Federal
Stafford Loan, a copy of a Federal Stafford Loan Master Promissory Note, a
copy of his letter to another financial institution concerning his student
loan, a copy of an application/promissory note for the alternative loan
program, a copy of a 4 March 2004 letter to him from the Human Resources
Command Education Incentives and Counseling Branch, a copy of a DA Form
2475 (DOD Educational Loan Repayment Program Annual Application), and a
copy of a 10 March 2004 letter to him from the Human Resources Command
Education Incentives and Counseling Branch.

CONSIDERATION OF EVIDENCE:

1.  The applicant enlisted in the Army for five years on 26 July 2002.  He
enlisted for a cash bonus of $10,000.00 and for the loan repayment program.
 The applicant completed DA Form 3286-66 in which he stated that he
acknowledged and understood that he enlisted for the Loan Repayment
Program.  That form contained a number of statements, to include, "If the
incentive … is for the … LOAN REPAYMENT PROGRAM (LRP), I understand that I
must disenroll from the GI Bill in order to qualify for the program … If I
fail to complete the disenrollment portion of the DD Form 2366, I will not
be eligible for the LRP and will become automatically enrolled in the GI
Bill," and, "I understand that under the 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 … after1
October 1975 and before I enlist into the Regular Army."  He and his
guidance counselor signed that form.

2.  Submitted with his request is an “alternative loan program” application
and promissory note for $5000.00, dated 30 June 2001, made with the Key
Bank USA, N.A.

3.  On 4 March 2004 the Education Incentives and Counseling Branch of the
Human Resources Command informed the applicant that his loan disbursed on
10 July 2001, totaling $6,564.28 did not qualified for repayment under the
loan repayment program, stating that as indicated on his DA Form 2475, his
loan was an alternative loan, not made, insured or guaranteed under Title
IV, Part B, D, or E of the Higher Education Act of 1965.

4.  The LRP is an educational enlistment incentive, which provides for
payment of a percentage of the unpaid principal of eligible student loans
for each year of active duty a soldier completes.  Title 10, United States
Code, section 2171, limits loans that are eligible for repayment under the
LRP to those made, insured, or guaranteed under the Higher Education Act of
1965.

5.  In the processing of this case an advisory opinion was obtained from
the Education Incentives and Counseling Branch, recommending disapproval of
the applicant’s request, stating that the alternative loan did not qualify
for repayment under the loan repayment program, and that there were no
exceptions to the law. The Branch stated that the applicant had other loans
that qualified for repayment and that appropriate payments were being
authorized toward his qualifying student loans.

6.  On 2 July 2004 a copy of the advisory opinion was furnished the
applicant for his information and possible rebuttal.  He failed to respond.


DISCUSSION AND CONCLUSIONS:

1.  Although the Board does acknowledge that the applicant’s enlistment
contract indicates that his enlistment incentives included the LRP
incentive, the applicant failed to acknowledge that his enlistment contract
further clarified the provisions under which a student loan could be
repaid.  The loan that the applicant wants the Army to pay is an
alternative loan, not eligible for payment under the LRP.  The applicant's
enlistment contract, which he completed in July 2002, shows that he stated
that he understood that only certain loans would be paid by the Army under
the LRP.

2.  While it is unfortunate that the applicant might not have comprehended
that his alternative loan was not payable under the LRP, the Army has lived
up to the provisions of his enlistment contract, and there is no evidence,
and the applicant has not submitted any, to show that the applicant's
recruiter or other responsible personnel assured him that all his student
loans would be paid by the government.  The Board notes that the applicant
authenticated that portion of his enlistment contract by his signature on
the DA Form 3286-66.  There is no evidence of any error or injustice.
Consequently, his request that his alternative loan be repaid is not
granted.

3.  The applicant has submitted neither probative evidence nor a convincing
argument in support of his request.

BOARD VOTE:

________  ________  ________  GRANT FULL RELIEF

________  ________  ________  GRANT PARTIAL RELIEF

________  ________  ________  GRANT FORMAL HEARING

___YM __  ___RW__  ___JR  __  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.



                                  ___Yolanda Maldonado______
                                            CHAIRPERSON



                                    INDEX

|CASE ID                 |AR20040001889                           |
|SUFFIX                  |                                        |
|RECON                   |YYYYMMDD                                |
|DATE BOARDED            |20050224                                |
|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.       |112.12                                  |
|2.                      |                                        |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |


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