RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:            24 February 2005
      DOCKET NUMBER:   AR20040001209


      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             |
|     |Mrs. Nancy L. Amos                |     |Analyst              |


      The following members, a quorum, were present:

|     |Ms. Yolanda Maldonado             |     |Chairperson          |
|     |Mr. Ronald J. Weaver              |     |Member               |
|     |Mr. Jonathon K. 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.  The applicant requests, in effect, that her consolidated loan be used
to calculate the amount of her Loan Repayment Program (LRP) payments.

2.  The applicant states that at the time she enlisted she was not made
aware of all the options for her student loans (consolidation loans).  The
recruiter's lack of information on this subject has now caused undue
hardship.  Her student loans went into repayment status in 1998.  Since
then, she has had several deferments and forbearances that have greatly
increased the original principal on the loans.  She was informed upon
enlisting that all her loans would be paid up to $65,000.  She has not been
denied any payments; however, she is still left with an amount of
approximately $11,000 to be paid to her lenders.  The incentives had a lot
to do with her ultimate decision to enlist.

3.  The applicant provides the paperwork for five Federal Perkins Loan
Program student loans; five Application(s) and Promissory Note(s) for
Federal Stafford Loans; three South Carolina Guaranteed Student Loan
Application(s) and Promissory Note(s); a bill from Citibank dated 19 April
2004; an account status from AMS Servicing Group dated 28 April 2004; and a
letter from the South Carolina Student Loan Corporation dated 21 April
2004.

CONSIDERATION OF EVIDENCE:

1.  The applicant entered the Delayed Entry Program on 19 December 2002 for
incentive programs Training Enlistment Program, Cash Enlistment Bonus for
$10,000, and the LRP for up to $65,000.  At that time, she had signed a U.
S. Army Recruiting Command (USAREC) Form 1150 indicating that she
understood that under the Army's Student Loan Repayment Program, the Army
would not repay student loans in excess of $65,000 regardless of the amount
of her student loans.  She further understood that she was required to make
the interest payments on her student loan during [her] enlistment.

2.  The applicant enlisted in the Regular Army on 4 March 2003 for 5 years.
 Prior to entry on active duty she had obtained a number of student loans,
apparently all qualified for repayment under the LRP.

3.  In the processing of this case, an advisory opinion was obtained from
the Chief, Education Incentives and Counseling Branch, U. S. Army Human
Resources Command (USAHRC).  That office noted that it was unfortunate the
applicant felt she was misled; however, USAREC properly counseled her
regarding her responsibility to pay interest on the eligible loans as
indicated on the USAREC Form 1150.  That office noted that the LRP has
stringent criteria, that regulatory guidance precludes the authorization of
payments toward interest and the reimbursement of payments made, and that
there are no provisions for waiving the requirement.

4.  A copy of the advisory opinion was provided to the applicant for
comment or rebuttal.  She rebutted that she is aware that the LRP does not
pay interest that is accrued after enlistment and she was not attempting to
have that interest paid. She feels she was not given the proper guidance
toward the most cost efficient way to achieve the goal of having her huge
debt of student loans paid.  Consolidated loans are listed as a qualifying
loan in the LRP.  She was told that the LRP does not dissect a loan
consolidation to determine what is interest and what is principal.  $11,000
at 33 1/3 percent is not a huge amount to this program since it will cover
up to $65,000 on an individual loan; however, it is a substantial amount to
a private and it will continue to grow within the next few years.  Prior to
any payment being made toward her loans by the LRP her loans were
consolidated.  She is asking that the payments from the LRP be recalculated
to include her consolidated loan minus the interest that has accrued during
her enlistment.

5.  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),
consolidated loans which fall under Title IV, Part B or E of the Higher
Education Act of 1965, or William D. Ford Loans.  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.

6.  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.

7.  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 that these
programs/options are designed to merge valid Army requirements with
personal desires.

8.  Army Regulation 601-210, Table 9-4 contains guidance on enlistment
option program 9C (Bonus/Army College Fund/Loan Repayment Program).  Table
9-4 provides program processing procedures that require specific counseling
and administrative actions in connection with processing members enlisting
with the LRP incentive.  Line 7 of Table 9-4 requires the guidance
counselor to verify that the applicant has qualifying loans if enlisting
for the LRP, to advise the applicant if any loan is not eligible, and to
have the applicant acknowledge same in the remarks section of the DD Form
1966 series.

9.  USAREC Regulation 621-1 (Montgomery GI Bill, Army College Fund, and
Loan Repayment Program) provides guidance counselor procedures in addition
to the requirements outlined in Army Regulation 601-210.  Paragraph 4-4
states that the guidance counselor will advise the LRP applicant to read
Army Regulation 621-202, chapter 3, prior to completing the 10th month of
active duty. Paragraph 4-5 states that recruiters will advise applicants
awarded the LRP to secure a deferment or forbearance from the lender.

10.  Army Regulation 621-202 (Army Educational Incentives and
Entitlements), chapter 3 provides further guidance on the LRP.  Paragraph 3-
8 provides instructions to the Soldier on how to apply for his or her
annual loan repayment.  Paragraph 3-3 supplements the enlistment procedures
outlined in Army Regulation 601-210.  It states that one of the eligibility
requirements for the LRP is for the member to provide the Army a loan
promissory note before enlistment.

11.  Army Regulation 621-202 further states that USAREC ensures the
accuracy of the enlistment documents, forwards the required documents to
the U. S. Total Army Personnel Command (currently USAHRC), forwards the
required documents to the reception battalion with the accession packet,
and assists soldiers awarded the LRP to secure a military deferment from
the lender.

DISCUSSION AND CONCLUSIONS:

1.  The applicant's contention that her recruiter did not give her any
information on the option of consolidating her loans is noted.  However,
recruiters and guidance counselors are neither directed by regulation to
give such information nor are they qualified to instruct a recruit on the
best way to optimize repayment of student loans.

2.  The applicant could have sought such information from those better
qualified to give her such information, i.e., her loan companies.  It
appears she consolidated her loans after she enlisted in the Regular Army.
Unfortunately, by that time it was too late.  Regrettably, there is no
basis for granting the applicant's request.

BOARD VOTE:

________  ________  ________  GRANT FULL RELIEF

________  ________  ________  GRANT PARTIAL RELIEF

________  ________  ________  GRANT FORMAL HEARING

__ym____  __rjw___  __jkr___  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                 |AR20040001209                           |
|SUFFIX                  |                                        |
|RECON                   |                                        |
|DATE BOARDED            |20050224                                |
|TYPE OF DISCHARGE       |                                        |
|DATE OF DISCHARGE       |                                        |
|DISCHARGE AUTHORITY     |                                        |
|DISCHARGE REASON        |                                        |
|BOARD DECISION          |DENY                                    |
|REVIEW AUTHORITY        |Mr. Chun                                |
|ISSUES         1.       |112.12                                  |
|2.                      |                                        |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |


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