IN THE CASE OF:	

		BOARD DATE:	30 July 2009  

		DOCKET NUMBER:  AR20090002040 


THE BOARD CONSIDERED THE FOLLOWING EVIDENCE:

1.  Application for correction of military records (with supporting documents provided, if any).

2.  Military Personnel Records and advisory opinions (if any).


THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE:

1.  The applicant requests that the Army repay student loans under the Loan Repayment Program (LRP).

2.  The applicant states that all of his student loans have been paid in full except for one (Granite State Management and Resources) and that there is a balance of $1,933.10 which was not paid by the Army per his signed enlistment contract.

3.  The applicant provides a monetary history report, his enlistment contract, a promissory note, and student loan statements in support of his application. 

CONSIDERATION OF EVIDENCE:

1.  Title 10, U.S. Code, section 1552(b), provides that applications for correction of military records must be filed within 3 years after discovery of the alleged error or injustice.  This provision of law also allows the Army Board for Correction of Military Records (ABCMR) to excuse an applicant’s failure to timely file within the 3-year statute of limitations if the ABCMR determines it would be in the interest of justice to do so.  While it appears the applicant did not file within the time frame provided in the statute of limitations, the ABCMR has elected to conduct a substantive review of this case and, only to the extent relief, if any, is granted, has determined it is in the interest of justice to excuse the applicant’s failure to timely file.  In all other respects, there are insufficient bases to waive the statute of limitations for timely filing.


2.  The applicant enlisted in the Regular Army on 2 June 1994 for a period of 
3 years.  His DA Form 3286-66 (Statement of Understanding, U.S. Army Incentive Enlistment Program) shows he enlisted for the LRP.  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 1975 (Guaranteed Student Loan) or any loan made under Part E of such act (National Direct Student Loan) after 1 October 1975 and before he enlisted in the Regular Army (not to exceed $55,000.00).  This form also states that the portion or amount of loan that might be repaid is  33 1/3 percent or $1,500.00, whichever is greater, of the unpaid principal balance of each year of service completed (not to exceed $55,000.00).  Repayment will be made only after each successful year of active duty that he performs commencing on the date of his enlistment in the Regular Army.

3.  In 1994, the applicant applied for repayment of two New Hampshire Higher Education Assistance Foundation Student Loans in the amount of $15,472.00.  

4.  In the processing of his case, an advisory opinion was prepared by the Chief, Education Incentives Branch of the U.S. Army Human Resources Command.  The opinion points out that the applicant entered active duty on 2 June 1994 with the LRP as part of his enlistment agreement, that verification for his loans was received in August "1985" [sic] from Granite State Management Resources, and that the total remaining original unpaid principal verified by Granite State Management Resources was $15,472.00 ($8,740.00/Supplemental Loans and $6,732.00/Stafford Loans).  That office's records indicate payments totaling $15,472.00 to Granite State Management Resources were authorized over a period of 3 years.  The opinion noted that payments made under the LRP are intended for principal only, that the Army does not assume an individual's loan, and that the individual remains responsible for payment and the status of the loan.  The advisory opinion recommended disapproval of the applicant's request.  

5.  A copy of the advisory opinion was provided to the applicant for information to afford him the opportunity to submit comments or a rebuttal.  He did not respond within the given time frame.

6.  The LRP 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, 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 $1,500.00, whichever is greater, is authorized annually to the loan holder on the total remaining original outstanding principal balance.
  
7.  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.

DISCUSSION AND CONCLUSIONS:

The applicant's contention that all of his student loans were paid in full except for Granite State Management and Resources was noted.  However, the advisory opinion states that the total remaining original unpaid principal verified by Granite State Management Resources was $15,472.00 and that the Education Incentives Branch records indicate that payments totaling $15,472.00 to Granite State Management Resources were authorized over a period of 3 years.  It appears the balance of $1,933.10 was interest on these loans and LRP payments are intended for principal only.  There is no authorization for payment toward interest and the reimbursement made, nor is there a regulatory provision for waiving this requirement.  Therefore, there is no basis for granting the applicant's requested relief.

BOARD VOTE:

________  ________  ________  GRANT FULL RELIEF 

________  ________  ________  GRANT PARTIAL RELIEF 

________  ________  ________  GRANT FORMAL HEARING

____X____  ____X____  ____X____  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.



      ___________X____________
               CHAIRPERSON
      
I certify that herein is recorded the true and complete record of the proceedings of the Army Board for Correction of Military Records in this case.

ABCMR Record of Proceedings (cont)                                         AR20090002040



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ABCMR Record of Proceedings (cont)                                         AR20090002040



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