RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:        27 September 2005
      DOCKET NUMBER:  AR20040009547


      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             |
|     |Ms. Rosa M. Chandler              |     |Analyst              |


      The following members, a quorum, were present:

|     |Mr. Ronald E. Blakely             |     |Chairperson          |
|     |Mr. Lawrence Foster               |     |Member               |
|     |Ms. LaVerne M. Douglas            |     |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, payment of her college loans under
the Student Loan Repayment Program (SLRP).

2.  The applicant states, in effect, that prior to enlisting in the
military her recruiter advised her that her student loans were eligible for
repayment under the Army’s SLRP enlistment option and that she could take
advantage of both the Montgomery GI Bill and the SLRP option.  She paid
$1,200.00 into the Montgomery GI Bill program, and she has since been
reimbursed the $1,200.00, because she was not eligible for participation in
the program.

3.  The applicant provides, in support of her application:

      a.  Two letters from the Human Resources Command (HRC), Education
Incentives and Counseling Branch, dated 15 March and 7 May 2004.


      b.  A self-authored statement, dated 30 September 2004.


      c.  A SLRP Annual Application, dated 22 September 2003.

CONSIDERATION OF EVIDENCE:

1.  The applicant’s military records show that on 14 January 2003, she
enlisted in the Regular Army (RA) for 4 years, Option 9A (United States
(US) Army Training Enlistment Program) and for Option 9C (U.S. Army
Incentive Enlistment Program) with an incentive for the SLRP and a cash
bonus in the amount of $4,000.00.

2.   On 29 October 2004, the applicant was honorably discharged in under
the provisions of chapter 5-8, Army Regulation 635-200, for parenthood,
after having served 1 year, 9 months, and 16 days on active duty.

3.  On 14 January 2003, during the enlistment process, both the applicant
and the service representative signed her DA Form 3286-66 (Statement of
Understanding), Annex D, indicating she understood she was enlisting for
the SLRP and that she was not eligible to participate in the Montgomery GI
Bill program.  If she failed to disenroll from participation in the
Montgomery GI Bill program, she would not be eligible for participation in
the SLRP.

4.  The Statement of Understanding, Annex D, also shows the applicant
acknowledged she understood the government will repay a designated portion
of any loan she incurred that was made, insured or guaranteed under Part B
of the Higher Education Act (Guaranteed Student Loan) or any loan under
Part E of such act (National Direct Student Loan) after 1 October 1975 and
before she enlisted in the Army.  Provided the applicant met and maintained
the prescribed prerequisites, that portion or amount of her student loan
that may be repaid is
33 1/3 percent or $1,500.00, whichever is greater of the unpaid principal
balance for each year of service completed.

5.  On 7 May 2004, the HRC, advised the applicant that her loan with the
Student Loan Finance Corporation (SLFC) did not meet the eligibility
criteria outlined by the Higher Education Act, Title IV, Part B, D, and E
for payment under the SLRP and that payment towards such loan would be a
violation under current law.

6.  In the processing of this case, on 1 March 2005, an advisory opinion
provided by the HRC, indicates the applicant's loans with Wells Fargo
Financial Services in the amount of $21, 756.00 are qualifying loans for
repayment under the SLRP. A payment in the amount of $7,251.99 has been
authorized towards these qualifying student loans.

7.  The HRC advisory opinion also advises the applicant has a SLFC loan in
the amount of $24,605.63 that does not qualify for payment under the SLRP
because the SLFC loans were not made, insured, or guaranteed under Title
IV, Part B, D, or E of the High Education Act of 1965.  Further, the HRC
advises that there are no exceptions to the law.  Therefore, payment cannot
be authorized on her non-qualifying loans.

8.  Further, the HRC advisory opinion states that in accordance with Army
regulations, an individual who does not complete an initial enlistment will
be eligible for prorated payments under the SLRP if the individual serves
at least
1 full year on active duty and is subsequently discharged for certain
“convenience of the government”, service-connected disability or hardship
reasons.  Due to the applicant’s reason for discharge, she does not qualify
for a prorated payment under the SLRP for her second year of active duty.
The applicant is responsible for repaying the remaining principal balance
and any interest or charges accrued to her account.

9.  The HRC recommends disapproval of the applicant's request.
Additionally, the HRC states the applicant has a non-qualifying outstanding
loan balance with the SLFC in the amount of $24,605.63.  Based on
completion of the applicant's first year of active duty, the appropriate
payment would be $8,201.88.  If the Board authorizes compensation, the
compensation should be sent directly to the applicant.

10.  The applicant was provided an opportunity to respond to the above
advisory opinion.  On 4 April 2005, she responded by stating, in effect,
that her recruiter reassured both her and her parents that her loans to
include her SLFC loan would be paid in accordance with the SLRP.  She
enlisted for the SLRP and she was required to disenrolled from the
Montgomery GI Bill program, and participation in other enlistment
incentives.  She acknowledges she understands she completed only 1 full
year of honorable service and she is authorized
1 year's worth of SLRP benefits.

11.  Army Regulation 601-210 (Regular Army and Army Reserve Enlistment
Program) prescribes the eligibility criteria governing the enlistment of
persons, with or without prior service, into the RA and the USAR:

      a.  Chapter 6, section II, (Guidance Counselor Processing Phase)
Prescribes the duties of the guidance counselor and the procedures to be
followed in the enlistment process.  Guidance counselors are responsible
for reviewing an individual's enlistment contract and counseling the
individual on enlistment options.  Guidance counselors are also required to
counsel an individual who fails to meet specific qualifications for options
for which the individual applied, and to advise the individual concerning
other available options.

      b.  Chapter 9 (Enlistment Programs/Options) provides a general
description of all authorized enlistment programs and options.  Enlistment
programs/options are designed to merge valid Army requirements with
personal desires.  This chapter contains guidance on, enlistment option
program 9C, the Bonus/Army College Fund/Loan Repayment Program.  It
provides that the government will repay a designated portion of any loan
incurred that was made, insured, or guaranteed under part B of the Higher
Education Act of 1965 (Guaranteed Student Loan) or any loan under part E of
such act (National Direct Student Loan) after 1 October 1975 and before
enlistment into the Regular Army.
This chapter provides that guidance counselors will accomplish specific
counseling and administrative actions in connection with processing members
enlisting with the SLRP incentive.  These actions include ensuring
individuals are disenrolled from the GI Bill program; verifying that
individuals have qualifying loans; and advising individuals of loans that
are not eligible for payment in accordance with the SLRP.

12.  Army Regulation 601-210 also provides that guidance counselors will
confirm specific processing procedures have been accomplished by making the
appropriate entries in the DD Form 1966 and DA Form 3286-66.  This
includes:  a statement regarding the individual's eligibility for
participation in the SLRP; any factors that may disqualify the individual
from participating in the SLRP and the individual's acknowledgement of
such.

13.  The SLRP is a Department of the Army enlistment option authorized by
Title 10 of the United States Code, section 2171 (10 USC 2171), which
provides the legal authority for the education loan repayment program for
enlisted members on active duty in specified military specialties.  The law
states, in pertinent part, that 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. It further specifies that
payment of such loans shall be made on the basis of each complete year of
service performed as an enlisted member in a military specialty specified
by the Army.  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.

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 her or another’s
service in the Army, Navy, Air Force, Marine Corps or Coast Guard, as the
case may be.”

DISCUSSION AND CONCLUSIONS:

1.  Careful consideration has been given the advisory opinion obtained from
the HRC; however, the evidence indicates the applicant's enlistment
contract clearly established a contractual agreement between the applicant
and the Army for payment of her student loans.  A payment in the amount of
$7,251.99 has already been made on the applicants qualifying loans, based
on the completion of 1 year of active duty.  Payment of the remaining
balance of the qualifying loans rest solely with the applicant.

2.  It is clear the applicant's SLFC loan does not meet the criteria
established by law for payment under the SLRP; however, this is not the
overriding factor in this case given the equity considerations and the
resultant injustice.



3.  Counselors are required to verify that an individual's loans qualify
for payment in accordance with the SLRP and those loans that are ineligible
for payment are documented in the enlistment contract prior to the
individual departing for active duty.  In this case, counselors failed to
properly document the applicants SLFC loan as ineligible for payment under
the SLRP, as required by law.

4.  In view of the facts, it appears that recruitment personnel failed to
follow established regulatory guidance in processing the applicant for the
SLRP.  Given, the error was due to no fault of the applicant it would be
appropriate to provide the applicant the SLRP benefits committed to in the
enlistment contract for 1 full year.

5.  In doing so, the applicant's military records should be corrected to
show her DA Form 3286-66 has been amended to include the sentence "If a
student loan is accepted by officials processing an individual for
enlistment as payable under the SLRP and the government fails to verify
that the student loan accepted actually is eligible under the Higher
Education Act of 1975 and such a failure results in nonpayment of the loan
or default of the loan, the ABCMR 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 the provision and pay $8,201.88 on the
applicant's unqualified SLFC loan.

6.  Based on the fact the applicant was discharged from the Army on 29
October 2004, the responsibility for additional payments for the
outstanding balance on her SLFC loan and all other loans rests solely with
her.

7.  The applicant enlisted for the SLRP; therefore, she was not eligible
for participation in the Montgomery GI Bill program.  This issue was
resolved upon the applicant being reimbursed, the $1,200.00 that she paid
into the program.  There will be no further discussion of the matter.

BOARD VOTE:

__reb___  __lf____  __lmd___  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 an individual
for enlistment as payable under the SLRP and the government fails to verify
the student loan accepted actually is eligible under the Higher Education
Act of 1975 and such a failure results in nonpayment of the loan or default
of the loan, the ABCMR may pay the loan, at its sole discretion, in
accordance with Title 10 , U.S. Code, section 1552."

2.  As a result of the above correction, the Defense Finance and Accounting
Service (DFAS) shall remit to the applicant a total of $8,201.88.  The
applicant will submit to DFAS any additional evidence that may be required
to support such payment.



                                        Ronald E. Blakely
                                  ______________________
                                            CHAIRPERSON



                                    INDEX

|CASE ID                 |AR20040009547                           |
|SUFFIX                  |                                        |
|RECON                   |                                        |
|DATE BOARDED            |20050927                                |
|TYPE OF DISCHARGE       |                                        |
|DATE OF DISCHARGE       |                                        |
|DISCHARGE AUTHORITY     |                                        |
|DISCHARGE REASON        |                                        |
|BOARD DECISION          |GRANT                                   |
|REVIEW AUTHORITY        |                                        |
|ISSUES         1.       |112.1200                                |
|2.                      |                                        |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |



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