RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:           21 April 2005
      DOCKET NUMBER:  AR20040005404


      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:

|     |Mr. Fred N. Eichorn               |     |Chairperson          |
|     |Mr. Richard T. Dunbar             |     |Member               |
|     |Ms. Delia R. Trimble              |     |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 his student loans be paid in accordance
with what his recruiter promised him.

2.  The applicant states that at the time he enlisted his recruiters told
him that his Massachusetts Educational Financing Authority (MEFA) loans did
qualify under the Loan Repayment Program (LRP).  He had no reason to
believe otherwise and immediately signed his enlistment contract thinking
he was going to be given the LRP incentive.

3.  The applicant provides a letter from his recruiter; a letter dated 2
June 2004 from the Acting Chief, Education Incentives and Counseling
Branch, U. S. Army Human Resources Command (USAHRC); two DD Forms 2475 (DOD
Educational Loan Repayment program (LRP) Annual Application); and two
promissory notes.

CONSIDERATION OF EVIDENCE:

1.  The applicant entered the Delayed Entry Program on 29 August 2002.  His
DA Form 3286-66 (Statement of Understanding United States Army Incentive
Enlistment Program) shows that he enlisted for the LRP up to a maximum
repayment of $65,000 in addition to other incentives.

2.  The applicant enlisted in the Regular Army on 14 November 2002.  Prior
to entry on active duty he had obtained two MEFA loans in the amount of
$35,759.14.

3.  On 2 June 2004, USAHRC notified the applicant that his loans were not
made, insured, or guaranteed under Title IV Part B, D, or E of the Higher
Education Act and were therefore ineligible for repayment.

4.  On 28 July 2004, the station commander at the recruiting station from
which the applicant enlisted stated that all of the applicant's loan papers
had been validated both when he enlisted and when he shipped to training.
His loans were also looked over at the Military Entrance Processing Station
and were found to be proper and acceptable and the proper procedures were
then started for repayment.  At no time did he, the applicant, or the
applicant's recruiter ever get told that his loans were not covered.

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), and
consolidated loans which fall under Title IV, Part B or E of the Higher
Education Act of 1965, 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, 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.  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.  The evidence of record shows that the applicant enlisted for the LRP
incentive.  He had obtained two student loans prior to his entry on active
duty and they were not in default prior to his entry on active duty.  His
recruiter has verified that the applicant was assured his loans qualified
for repayment under the LRP.

2.  The applicant enlisted in and has served the Army since his enlistment
in November 2002 in good faith.  In the interest of justice and equity, it
would be appropriate to provide him the full LRP benefits outlined in his
enlistment contract.

3.  The applicant’s military records may be corrected to show his DA Form
3286-66 was amended to include the sentence “If a student loan is accepted
by the officials processing you for enlistment as payable under the LRP and
the government fails to verify that the student loan accepted actually is
eligible under the Higher Education Act of 1965 and such failure results in
nonpayment of the loan by the LRP or the repayment or default of the loan,
the Army Board for Correction of Military Records may pay the loan, at its
sole discretion, in accordance with Title 10, U.S. Code, section 1552.”
This would allow the Board
to invoke that provision and pay him the amount his lending institutions
would have been paid under the LRP.

BOARD VOTE:

__fne___  __rtd___  __drt___  GRANT FULL RELIEF

________  ________  ________  GRANT PARTIAL RELIEF

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

BOARD DETERMINATION/RECOMMENDATION:

1.  The Board determined that the evidence presented was sufficient to
warrant a recommendation for relief.  As a result, the Board recommends
that the applicant's DA Form 3286-66 be amended to include the sentence “If
a student loan is accepted by the officials processing you for enlistment
as payable under the LRP and the government fails to verify that the
student loan accepted actually is eligible under the Higher Education Act
of 1965 and such failure results in nonpayment of the loan by the LRP or
the repayment or default of the loan, the Army Board for Correction of
Military Records may pay the loan, at its sole discretion, in accordance
with Title 10, U.S. Code, section 1552.”

2.  That as a result of the foregoing correction the Defense Finance and
Accounting Service shall remit payment to the applicant of the total amount
of his MEFA loans ($35,759.14) to which he is entitled as a result of this
correction at the appropriate rate and time.  The applicant will be
required to submit the appropriate evidence (promissory notes, etc.) to the
Defense Finance and Accounting Service to determine the amount due.




            __Fred N. Eichorn_____
                    CHAIRPERSON

                                    INDEX

|CASE ID                 |AR20040005404                           |
|SUFFIX                  |                                        |
|RECON                   |                                        |
|DATE BOARDED            |20050421                                |
|TYPE OF DISCHARGE       |                                        |
|DATE OF DISCHARGE       |                                        |
|DISCHARGE AUTHORITY     |                                        |
|DISCHARGE REASON        |                                        |
|BOARD DECISION          |GRANT                                   |
|REVIEW AUTHORITY        |Mr. Schneider                           |
|ISSUES         1.       |112.12                                  |
|2.                      |                                        |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |


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