RECORD OF PROCEEDINGS
AIR FORCE BOARD FOR CORRECTION OF MILITARY RECORDS

IN THE MATTER OF:	DOCKET NUMBER:  BC-2013-02102
		COUNSEL:  NONE
	XXXXXXX	HEARING DESIRED:  NO

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APPLICANT REQUESTS THAT:

He be reimbursed $7,077.89 he made towards his college loans.

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APPLICANT CONTENDS THAT:

The Air Force Board for Correction of Military Records (AFBCMR) 
corrected his records in 2009 to allow him to enroll in the 
Enlisted College Loan Repayment Program (ECLRP).  However, due 
to the time it took to correct his records, he did not gain any 
benefit from the correction.  His loans that would have 
qualified under ECLRP cannot be submitted under the program for 
payment because he already paid them off.  ECLRP only pays for 
active loans.  If he was properly counselled and enrolled in the 
ECLRP at the time of his entry into the military, his loans 
would have been partially paid under the program.

In support of his request, the applicant provides a personal 
statement, copies of electronic communiqués, memorandums, loan 
statements, payment history and various other documents related 
to his request. 

The applicant's complete submission, with attachments, is at 
Exhibit A.

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STATEMENT OF FACTS:

On 12 Nov 2002, the applicant enlisted in the Regular Air Force.

On 2 Dec 2008, the applicant submitted an application to the 
AFBCMR requesting his records be corrected to allow his 
enrollment in the Enlisted College Loan Repayment Program 
(ECLRP).

On 8 Sep 2009, the Secretary of the Air Force directed that the 
applicant’s record be corrected to show that he met the 
eligibility criteria to participate in the ECLRP and on 12 Nov 
2002, he elected to participate in the Program.

On 1 Dec 2009, the Defense Finance and Accounting Service (DFAS) 
contacted the applicant requesting further information regarding 
the directive issued by the office of the Secretary of the Air 
Force.

On 26 Apr 2011, DFAS advised the applicant they could not make 
payment on his correction as the directive did not stipulate 
that he be reimbursed for any college loans he borrowed on.

On 2 Jul 2011, AFPC/DPSIT notified the applicant via electronic 
communiqué that he was enrolled in the ECLRP.

ECLRP is a recruitment incentive open to eligible first-time 
enlistees having federally-insured student loans. Participation 
is restricted to enlisted Airmen who, upon enlistment, have the 
incentive documented on AF Form 3008, Supplement to Enlistment 
Agreement—United States Air Force. 

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AIR FORCE EVALUATION:

AFPC/DPSIT recommends denial.  DPSIT states that the Air Force 
policy on ECLRP does not provide for reimbursement of money a 
member has paid on their loan(s).  The applicant is requesting a 
reimbursement of $1,981.81 [sic].  The requested amount is based 
upon applying a 28 percent rate to the original federal student 
loan balances of $7,077.89.  All lenders associated with the 
federal government do not apply a 28 percent rate to the unpaid 
principal balance of a federal student loan.  The 28 percent 
used was the Federal Income Tax Withholdings (FITW) rate applied 
to loan payments made towards a member's federal student loan 
via the ECLRP.  The applicant is essentially requesting the FITW 
be reimbursed to him if he had participated in the program.  If 
he had participated in the ECLRP he would have received a W-
2 for the applicable tax year.  The W-2 would show how much 
DPSIT processed the payment(s) for and the amount of taxes 
withheld.  He would have filed that W-2 with his other W-2(s).  
There is no guarantee he would have received the FITW in a 
refund.  His tax bracket would have determined the overall 
amount of a refund if any.

The complete DPSIT evaluation, with attachment, is at Exhibit C.

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APPLICANT'S REVIEW OF AIR FORCE EVALUATION:

He did not request the 28 percent FITW be reimbursed for the 
federal student loans he paid.  He is asking for the amount he 
paid, which was $7,077.89 be reimbursed to him.  The advisory 
opinion assumes he wanted to be reimbursed the taxes and 
therefore should not be considered as a reason for denial as it 
is not what was originally requested.  Again, the gross amount 
of $7,077.89 is what he is requesting less taxes.  DPSIT states 
that ECLRP does not provide reimbursement of money a member has 
paid on their loans.  This is correct and is the very reason he 
is appealing to the Board as an avenue for recouping money he 
paid for his student loan that otherwise would have been covered 
under ECLRP if the initial error had not happened in the first 
place.  The fact the Board previously granted his request to 
allow him to enroll in the ECLRP is half a victory.  While he 
was allowed to enroll in the ECLRP, albeit several years after 
the fact, he was not able to benefit from this correction 
because of the amount of time it took to correct his record and 
the loan was paid off.

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THE BOARD CONCLUDES THAT:

1.  The applicant has exhausted all remedies provided by 
existing law or regulations.

2.  The application was timely filed.

3.  Sufficient relevant evidence has been presented to 
demonstrate the existence of an error or injustice.  We note 
that the applicant’s record was previously corrected in Sep 
2009, to allow him to enroll in the ECLRP effective 12 Nov 2002. 
However, due to the length of time it took to correct the 
record, the applicant eventually paid the loan off, consequently 
the previous correction to his record did not offer him full and 
fitting relief.  For that reason, we believe the applicant 
suffered an injustice.  Although, the Air Force office of 
primary responsibility asserts that the Air Force ECLRP policy 
does not provide for reimbursement of money paid on a loan, we 
believe, the applicant should benefit from the earlier 
correction to his record.  While the applicant requests he be 
reimbursed $7,077.89 less taxes, the Defense Finance and 
Accounting Service states they will report the $7077.89 as 
wages.  Therefore, when the applicant files his tax return he 
must declare the payment as taxable income and pay the 
associated taxes at that time, if applicable.  Accordingly, we 
recommend his records be corrected as set forth below.

________________________________________________________________

?
THE BOARD RECOMMENDS THAT:

The pertinent military records of the Department of the Air 
Force relating to APPLICANT, be corrected to show that he was in 
a temporary duty status for a sufficient number of days to 
accumulate an entitlement of $7,077.89.

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The following members of the Board considered Docket Number BC-
2013-02102 in Executive Session on 20 Feb 2014, under the 
provisions of AFI 36-2603:

      , Panel Chair
      , Member
      , Member

All members voted to correct the record as recommended.  The 
following documentary evidence was considered:

    Exhibit A.  DD Form 149, dated 21 Apr 2013, w/atchs.
    Exhibit B.  Applicant's Master Personnel Records.
    Exhibit C.  Letter, AFPC/DPSIT, dated 7 Jun 2013, w/atch.
    Exhibit D.  Letter, SAF/MRBR, dated 21 Jun 2013.
    Exhibit E.  Letter, Applicant, dated 3 Jul 2013.




                                   
                                   Panel Chair