RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:        22 MARCH 2005
      DOCKET NUMBER:  AR20040002778


      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             |
|     |Mr. Kenneth H. Aucock             |     |Analyst              |


      The following members, a quorum, were present:

|     |Mr. Thomas Howard                 |     |Chairperson          |
|     |Mr. Robert Osborn                 |     |Member               |
|     |Mr. James Gunlicks                |     |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 that the Army pay the loan he incurred from the
SLM Financial Corporation.

2.  The applicant states that he was informed that by signing the DD Form
2366 (Montgomery GI Bill Act of 1984) (MGIB), he would be able to have the
$11,600.00 SLM Financial Corporation loan repaid under the loan repayment
program (LRP).  The loan paid for the heavy equipment operator training he
received.  He graduated from the Associated Training Services Corporation
in September 2002.  The recruiter informed him that his training would
correlate well with the tank driver position offered during recruitment and
would further his experience with heavy equipment.  The guidance counselor
reviewed the SLM Financial Corporation paperwork, and told him that the
loan would be eligible for payment under the LRP.  He had no other loans to
submit for consideration under the LRP.  He requests that both the
principal and interest be paid by the Army, due to the fact that if the
government had fulfilled what was promised verbally and on his enlistment
contract, the debt would not have accrued to its current level.

3.  The applicant provides a copy of a 4 March 2004 letter to him from the
Chief, Education Incentives and Counseling Branch, Human Resources Command;
a copy of enlistment data, a copy of his enlistment contract, a copy of a
loan application, a copy of a LRP annual application [for repayment of a
loan], a copy of a SLM Financial Corporation educational loan program
repayment schedule and truth-in lending disclosure document, a copy of an
amortization schedule for his loan, and a copy of a certificate of
graduation.

CONSIDERATION OF EVIDENCE:

1.  The applicant enlisted in the Army Reserve Delayed Entry Program (DEP)
for 8 years on 16 October 2002.  At the time of his enlistment in the DEP
he agreed, upon his enlistment in the Regular Army, to be enlisted under
the provisions of the Army incentive cash bonus program in the amount of
$9,000.00, the LRP up to $65,000.00, and for training in MOS (military
occupational specialty) 19K, armor crewman.  He signed a statement of
understanding, acknowledging by his initials next to the pertinent item on
that statement, that he was not enrolling in the MGIB, but was enlisting
for the LRP.  His guidance counselor witnessed his statement.  On 16
October 2002 he signed the DD Form 2366, stating that he did not desire to
participate in the MGIB.  His guidance counselor also signed the form,
witnessing his disenrollment from the MGIB.  That form indicates that he
enlisted for the LRP.
2.  The applicant was discharged from the Army Reserve DEP upon his
enlistment in the Regular Army for 4 years on 7 January 2003.  On that date
he recertified his enlistment options, e.g., cash bonus, LRP, etc.  The
recertification was witnessed by a guidance counselor.

3.  On 7 January 2003 the applicant also completed DA Form 3286-66 in which
he stated that he acknowledged and understood that he enlisted for the Loan
Repayment Program.  That form contained a number of statements, to include,
"If the incentive … is for the … LOAN REPAYMENT PROGRAM (LRP), I understand
that I must disenroll from the GI Bill in order to qualify for the program
… If I fail to complete the disenrollment portion of the DD Form 2366, I
will not be eligible for the LRP and will become automatically enrolled in
the GI Bill," and, "I understand that under the program (LRP) that the
government will repay a designated portion of any loan I incurred that was
made, insured or guaranteed, under Part B of the Higher Education Act of
1975 (Guaranteed Student Loan) or any loan under Part E of such act … after
1 October 1975 and before I enlist into the Regular Army."  He and his
guidance counselor signed that form.

4.  Prior to his enlistment, on 23 June 2002, the applicant took out a loan
in the amount of $10,345.00 from the SLM Financial Corporation.  The SLM
Financial Corporation, in its repayment schedule and truth in lending
disclosure document, dated 27 June 2002, indicates that the applicant’s
loan amount was $11,600.00.

5.  On 27 February 2002 the applicant was awarded a certificate of
graduation from the Associated Training Services Corporation for completing
a 480 hour excavation industry training program.

6.  On 29 December 2003 the applicant submitted a DD Form 2475 (DOD LRP
Annual Application) requesting payment of his loan from the SLM Financial
Corporation.  The lender certified that the original amount of the loan was
$11,600.00, that payments were being made, and that the outstanding balance
and interest due were $10,514.38 and $62.97, respectively.  On 6 January
2004 Sallie Mae certified that the applicant’s loan was a private loan.

7.  On 4 March 2004 the Chief, Education Incentives and Counseling Branch,
Human Resources Command, informed the applicant that his loan, disbursed on
15 July 2002, totaling $10,577.35, did not qualify for repayment under the
LRP.  He was advised to apply to this Board if he felt that he was not
properly counseled or if he felt that an error or injustice had occurred.

8.  The LRP is an educational enlistment incentive, which provides for
payment of a percentage of the unpaid principal of eligible student loans
for each year of active duty a soldier completes.  Title 10, United States
Code, section 2171, limits loans that are eligible for repayment under the
LRP to those made, insured, or guaranteed under the Higher Education Act of
1965.  Individuals enrolled in the LRP earn 33 1/3 percent or $1,500,
whichever is greater, toward the remaining unpaid principal on all
qualifying loans for each successfully completed year of enlistment, up to
$65,000.00.  The LRP payments will be authorized toward the remaining
original unpaid principal balances as verified at the time the Soldier
enters active duty.  Public Law precludes payments toward interest and the
reimbursement of payments made.

9.  The MGIB, as outlined in Title 38, United States Code, chapter 30,
section 1411(b), provides for soldiers who entered the service after 30
June l985, to be automatically enrolled into the MGIB and to contribute
$1,200.00 during their first 12 months service, which is nonrefundable.
After completion of their service obligation, he or she is entitled to
receive up to $300.00 per month educational benefits for 36 months.  The
program is administered by the Department of Veterans Affairs (VA).  The
Montgomery GI Bill provides up to 36 months of education benefits for
college, business, technical, correspondence or vocational courses,
apprenticeship or job training, or flight school.  Participants can receive
over $36,000 in tuition.

10.  Army Regulation 601-210, chapter 6, specifies what forms are to be
completed when a person enlists in the Army.  Those forms include the DA
Form 3286 and the DA Form 1966 which show which options have been selected
by the person enlisting.  Only the options selected on that form are
considered valid and will be honored by the Government.

11.  Title 10, U.S. Code, Section 1552, the law which provides for the
Board states that “The Secretary may pay, from applicable current
appropriations, a claim for the loss of pay, allowances, compensation,
emoluments, or other pecuniary benefits, or the repayment of a fine or
forfeiture, if, as a result of correcting a record under this Section, the
amount is found to be due the claimant on account of his or another’s
service in the Army, Navy, Air Force, Marine Corps or Coast Guard, as the
case may be.”

DISCUSSION AND CONCLUSIONS:

1.  Although the Board does acknowledge that the applicant’s enlistment
contract indicates that his enlistment incentives included the LRP
incentive, the applicant failed to acknowledge that his enlistment contract
further clarified the provisions under which a student loan could be
repaid.  The Board notes that the applicant authenticated that portion of
his enlistment contract by his signature on the       DA Form 3286-66.

2.  Nonetheless, it is apparent that the applicant understood that his loan
would be repaid by the Army, and in this respect he had the consent of his
guidance counselor, who on two occasions made it known to the applicant
that his loan would be repaid.  The applicant enlisted in good faith
expecting to receive benefits under the LRP.  His disenrollment from the
MGIB is proof positive that both the applicant and his guidance counselor
believed, however mistakenly, that the applicant’s loan would be repaid
under the provisions of the LRP.

3.  Consequently, in all fairness to the applicant, the applicant’s loan
that he incurred with SLM Financial Corporation should be paid in
accordance with the provisions of Title 10, U.S. Code, Section 1552.

4.  The amount of the loan, however, cannot be readily determined from the
available information.  Evidence reflects three different amounts -
$11,600.00, $10,345.00, $10,577.35, the latter amount cited by the Chief,
Education Incentives and Counseling Branch, Human Resources Command.  This
command, responsible for processing loan repayment program applications is
accepted as the specialist in verifying the amounts of loans authorized to
be paid. Consequently, the Board accepts the figure put forth by that
command.  Therefore, the applicant’s loan should be paid in the amount of
$10,577.35.

BOARD VOTE:

____TH _  ___RO __  ___JG __  GRANT FULL RELIEF

________  ________  ________  GRANT PARTIAL RELIEF

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

BOARD DETERMINATION/RECOMMENDATION:

The Board determined that the evidence presented was sufficient to warrant
a recommendation for relief.  As a result, the Board recommends that the
Defense Finance and Accounting Service remit payment to the applicant in
the amount of $10,577.35 in accordance with the provisions of Title 10,
U.S. Code, Section 1552.





                                  _____Thomas Howard______
                                            CHAIRPERSON



                                    INDEX

|CASE ID                 |AR20040002778                           |
|SUFFIX                  |                                        |
|RECON                   |YYYYMMDD                                |
|DATE BOARDED            |20050322                                |
|TYPE OF DISCHARGE       |(HD, GD, UOTHC, UD, BCD, DD, UNCHAR)    |
|DATE OF DISCHARGE       |YYYYMMDD                                |
|DISCHARGE AUTHORITY     |AR . . . . .                            |
|DISCHARGE REASON        |                                        |
|BOARD DECISION          |PARTIAL GRANT                           |
|REVIEW AUTHORITY        |                                        |
|ISSUES         1.       |112.12                                  |
|2.                      |                                        |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |


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