RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:        28 July 2005
      DOCKET NUMBER:  AR20040008189


      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. G. E. Vandenberg              |     |Analyst              |


      The following members, a quorum, were present:

|     |Mr. William D. Powers             |     |Chairperson          |
|     |Mr. Larry C. Bergquist            |     |Member               |
|     |Mr. James B. 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 his student loans be repaid, or if such
payment is not authorized that his obligated service period be reduced to
two years and that he be granted a $6,000.00 cash bonus or that he be
separated from active duty for erroneous enlistment.

2.  The applicant states that he, his recruiter, and the guidance counselor
all believed that his loan qualified under the Loan Repayment Program
(LRP).

3.  The applicant provides a personal statement, a statement from his
recruiter, a statement from his command's legal assistance office, and
copies of his enlistment documents.

CONSIDERATION OF EVIDENCE:

1.  The applicant enlisted under the Delayed Enlistment Program on 28 April
2003.  His DA Form 3286-59 (Statement for Enlistment United States Army
Enlistment Program U. S. Army Delayed Enlistment Program) shows he enlisted
for the Army Training Enlistment Program, the High School Graduate Bonus
and the Army LRP.

2.  His DD Form 1966 (Record of Military Processing - Armed Forces of the
United States) lists his options as the Army Training Enlistment Program, a
cash bonus, and the LRP and, based on the LRP guarantee, that he was not
eligible for the Montgomery GI Bill.

3.  On the DA Form 3286-66, the applicant acknowledged that under the LRP
the Government would repay a designated portion of any loan he incurred
that was made, insured or guaranteed under Part B of the Higher Education
Act of 1965 or any loan under Part E of such act after 1 October 1975 and
before he enlisted into the Regular Army.

4.  None of the applicant's enlistment documents, to include his DD Form
1966, identified what student loans he had.

5.  The applicant enlisted in the Regular Army on 13 May 2003 for 3 years.
Prior to entry on active duty he had obtained a student loan that was not
in default.  He completed basic training and advanced individual training
and was awarded military occupational specialty 12C (Bridge Crewman).

6.  In August 2003, the U. S. Total Army Personnel Command (redesignated
USAHRC) informed the applicant that his Key Career Loan through KEYBANK
USA, N.A. was not made, insured, or guaranteed under Title IV Part B, D, or
E of the Higher Education Act and was therefore ineligible for repayment.

7.  The applicant provided a letter of support from a staff attorney at the
Headquarters, 2nd Infantry Division, Legal Assistance Center.  The attorney
stated that the outstanding loan at the time of the applicant's enlistment
was in good standing and that the information of record clearly shows that
the applicant enlisted under the understanding that his loan met the
requirements for repayment under the LRP.  He states that if the Board does
not grant payment under the LRP, the applicant should be separated under
the provisions of Army Regulation 635-200, Section III, paragraph 7-16a for
erroneous enlistment.

8.  In the processing of this case, an advisory opinion was obtained from
the Acting Chief, Education Incentives and Counseling Branch, USAHRC.  That
office advised that the applicant's loan from Key Bank did not qualify for
repayment.  They further stated that if the Board determined that the
applicant should be afforded relief, any payments should be made based on
the amount of the outstanding balance provided by Key Bank ($8,407.83) and
that any amount so authorized be sent directly to the Soldier.

9.  A copy of the advisory opinion was provided to the applicant for
comment or rebuttal.  He responded within the given time frame.  Attached
to his response was a letter of support from his recruiter.  The recruiter
stated that the outstanding loan at the time of the applicant's enlistment
was in good standing and it was believed that it met all of the
qualifications required by the Army for repayment.

10.  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.

11.  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.

12.  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.  In addition, 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.

13.  U. S. Army Recruiting Command Regulation 621-1 (Montgomery GI Bill,
Army College Fund, and Loan Repayment Program), current version effective
30 November 1998, paragraph 4-4a states that applicants for the LRP are no
longer authorized to ship without documents or verification of eligible
loans.

14.  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 Army
Training Enlistment Program, the High School Graduate Bonus and the Army
LRP.  He had obtained a student loan prior to his entry on active duty and
that loan was not in default prior to his entry on active duty.  It appears
that the Key Bank loan does not meet the requirements for repayment under
the Higher Education Act and the LRP.

2.  The applicant provided a statement from his recruiter stating the
applicant was told that his outstanding loan at the time of his enlistment
was determined to be in good standing and met all of the qualifications
required by the Army for repayment.  The lack of entry on the applicant's
DD Form 1966 noting that his student loan was not eligible for repayment
corroborates the recruiter's statement.  It would therefore be in the
interest of justice and equity to provide the applicant the full LRP
benefits outlined in his enlistment contract.

3.  The applicant’s military records should 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:

__LCB      __ WDP _  __  JBG     GRANT 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 the total amount of
his Key Bank loan, in the amount of $8,407.83, to which he is entitled as a
result of this correction.  If required, the applicant will submit the
appropriate evidence (promissory notes, etc.) to the Defense Finance and
Accounting Service.




                                  _        William D. Powers_______
                                            CHAIRPERSON

                                    INDEX

|CASE ID                 |AR                                      |
|SUFFIX                  |                                        |
|RECON                   |                                        |
|DATE BOARDED            |20050728                                |
|TYPE OF DISCHARGE       |                                        |
|DATE OF DISCHARGE       |                                        |
|DISCHARGE AUTHORITY     |AR . . . . .                            |
|DISCHARGE REASON        |                                        |
|BOARD DECISION          |GRANT                                   |
|REVIEW AUTHORITY        |                                        |
|ISSUES         1.       |112.1200                                |
|2.                      |                                        |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |


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