APPLICANT REQUESTS:  That he receive benefits under the Student Loan Repayment Program (SLRP) addendum to his enlistment contract.

APPLICANT STATES:  He was promised the SLRP by his unit’s retention NCO and, as a student of higher education with outstanding student loans, had counted on the SLRP benefits.

In support of his application he submits a sworn statement from his unit’s retention NCO in which he states that he had told the applicant that he was eligible for the SLRP.  The retention NCO states he had not been given a copy of the latest list of bonus MOS’s and units and had been erroneously told that the previous bonus list had not changed.

EVIDENCE OF RECORD:  The applicant's military records show:

He reenlisted on 6 November 1994 for 6 years in pay grade 
E-6.  In conjunction with his reenlistment, he completed a DA Form 5261-4-R, Student Loan Repayment Program Addendum.  His military occupational specialty (MOS) was a civil affairs specialist.

On 27 January 1995 a higher headquarters informed the applicant’s unit commander that the applicant’s MOS had been removed from the bonus list effective 1 October 1994, and since that was prior to the applicant’s reenlistment, his reenlistment was considered defective.  Accordingly, the applicant was given the option of requesting discharge, but elected to be retained in his unit and to request an exception to policy to receive benefits under the SLRP.

The SLRP provides for the repayment by the Government of a designated portion of any outstanding student loan(s) secured after 1 October 1975.  The loan amount to be repaid is 15 percent of the original balance of the loan plus accrued interest not paid by the Department of Education, or $500.00 plus the accrued interest not paid by the Department of the Education, whichever is greater.  Payments will be made for each year of satisfactory service in the Selected Reserve.  The maximum amount of loans against which the 15 percent is computed will not exceed $10,000.  This equates to a maximum annual repayment of $1,500 plus interest.  If the amount set for repayment if less than $500.00, then $500.00 becomes the calculated amount for repayment that year.  To be eligible for the SLRP incentive, a person must contractually obligate himself to service satisfactorily, must serve in the Selected Reserve for a full term of the contractual agreement and must further obligate himself to continue to serve in the same component and the same MOS unless excused for the convenience of the Government.  Entitlement to the SLRP will stop if the soldier contracted for an MOS authorized by Department of the Army for SLRP entitlement and moves to an ineligible MOS, or is reclassified, unless at the express direction of the Department of the Army.  A soldier will not be eligible for any initial or subsequent loan repayments until he or she has completed IADT, is MOS qualified, and has been awarded a high school diploma. Each complete satisfactory year of service performed under this SLRP agreement establishes an anniversary date.  As with the bonus incentive the SLRP is tied to service in a valid position vacancy.  The Government will not reimburse a soldier if he or she pays off a student loan.  The Government will only pay the lending institution.

In the processing of this case an advisory opinion was obtained from the Office of the Chief, Army Reserve (OCAR).  The OCAR stated that the applicant’s MOS was not on the list of skills approved for the SRIP and, therefore, he is not eligible for benefits under the SRIP.

DISCUSSION:  Considering all the evidence, allegations, and information presented by the applicant, together with the evidence of record, applicable law and regulations, and advisory opinion, it is concluded:

1.  The applicant’s MOS was removed from the list of those skills authorized the SRIP prior to his reenlistment.  As such, he was not entitled to the SRIP.
2.  It is unfortunate that the applicant’s unit’s retention NCO erroneously led the applicant to believe he was entitled to the SLRP.  However, when the error was discovered the applicant was given his options in accordance with Army regulations; to request discharge or to waive the reenlistment commitment.  He chose to waive the reenlistment commitment of the SLRP.  That is understandable in consideration of his grade and years of service.

3.  In addition, it would appear that the applicant’s loans have now been paid, considering the date of his reenlistment (November 1994).  As such, his loans are no longer payable by law and his application is now overcome by events.

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

                       DENY APPLICATION




						Karl F. Schneider
						Acting Director