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ARMY | BCMR | CY2007 | 20070005860
Original file (20070005860.txt) Auto-classification: Denied


RECORD OF PROCEEDINGS


	IN THE CASE OF:	    


	BOARD DATE:	  28 June 2007
	DOCKET NUMBER:  AR20070005860 


	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.  


Ms. Catherine C. Mitrano

Director

Mr. Michael L. Engle

Analyst


The following members, a quorum, were present:


Mr. John T. Meixell

Chairperson

Mr. William F. Crain

Member

Mr. Dean A. Camarella

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.  The applicant requests, in effect, that his student loan be paid off under the Loan Repayment Program (LRP).   

2.  The applicant states, in effect, that he was promised the loan would be paid.  He believes that he qualifies for the LRP. 

3.  The applicant provides a copy of his enlistment contract and a letter from the Chief, Education Incentives Branch, United States Army Human Resources Command (USAHRC), dated 21 October 2005 with a DOD Educational Loan Repayment Program (LRP) Annual Application (DD Form 2475) signed by the certifying officer on 20 September 2005.

CONSIDERATION OF EVIDENCE:

1.  On 14 September 2004, the applicant enlisted in the Regular Army for 4 years in the rank of specialist, pay grade E4.  At the time of his application, he was still on active duty and had attained the rank of sergeant, pay grade E5.

2.  The applicant's Statement For Enlistment - United States Army Enlistment Program, shows that he enlisted in the Regular Army for the United States Army Training Enlistment Program, the United States Army Incentive Enlistment Program, the United States LRP, Statement of Intent for Special Forces Selection, United States Army Cash Bonus, a 4 Year Enlistment, and the United States Army Seasonal Bonus.  He was assured that, provided he met required prerequisites, he would receive training within the Infantry Career Management Field.

3.  The applicant's Record of Military Processing - Armed Forces of the United States (DA Form 1966) does not list his student loans.   However, his Statement For Enlistment informed him that the LRP would not repay student loans in excess of $65,000.

4.  Records show that the applicant secured a qualifying loan from Great Lakes in the amount of $17,444.34 prior to entry on active duty.  The first and second year payments totaling $11,629.56 were paid in August and September 2006.  The third year payment will be made in September 2007.



5.  By letter dated 21 October 2005, the Chief, Education Incentives Branch, USAHRC informed the applicant that his American Education Services (AES) Loan of $37,690.24 was a Non-Title IV Loan, which was not made, insured, or guaranteed under Title IV Part B,D, or E of the Higher Education Act, and did not qualify for repayment under the LRP. 

6.  The Department of Defense Educational Loan Repayment Program Annual Application (DD Form 2475) dated 20 September 2005, indicates that on 
12 January 2005, the applicant obtained an AES loan for $37,690.24.  It further showed that payments were being made and that the balance at that time was still $37,690.24. 

7.  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 or E of the Higher Education Act of 1965, or William D. Ford Loan.  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.  

8.  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.

9.  Army Regulation 601-210 (Regular Army and Army Reserve Enlistment Program) prescribes eligibility criteria governing the enlistment of persons, with or without prior service, into the Regular Army and the U. S. Army Reserve.  Chapter 9 (Enlistment Programs/Options) states these programs/options are designed to merge valid Army requirements with personal desires.  

DISCUSSION AND CONCLUSIONS:

1.  The evidence of record shows the applicant enlisted for the LRP incentive up to $65,000.  He had obtained a student loan prior to his entry on active duty in the amount of $17,444.34, which is being paid under the provisions of the LRP.

2.  The evidence of record shows that the applicant also obtained a Non-Title IV loan on 12 January 2005, in the amount of $37,690.24, after his entry on active duty.  

3.  There is no evidence showing that representatives of the United States Army led him to believe that his Non-Title IV loan made after his entry on active duty would be paid under the provisions of the LRP. 

4.  In view of the above, the applicant’s request should not be granted.

BOARD VOTE:

________  ________  ________  GRANT FULL RELIEF 

________  ________  ________  GRANT PARTIAL RELIEF 

________  ________  ________  GRANT FORMAL HEARING

_JTM____  __DAC__  __WFC _  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.





___   John T. Meixell_______
          CHAIRPERSON




INDEX

CASE ID
AR20070005860
SUFFIX

RECON
 
DATE BOARDED
20070628
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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