RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:           11 August 2005
      DOCKET NUMBER:  AR20040009681


      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. Wanda L. Waller               |     |Analyst              |


      The following members, a quorum, were present:

|     |Mr. John Slone                    |     |Chairperson          |
|     |Ms. Deborah Jacobs                |     |Member               |
|     |Mr. Michael Flynn                 |     |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 the Army repay three student
loans under the Loan Repayment Program (LRP).

2.  The applicant states, in effect, that at the time of his enlistment he
opted for the LRP, that he supplied his Military Entrance Processing
Station (MEPS) guidance counselors with the promissory notes and payment
stubs for all six of his student loans, and that he was assured by his
counselors all of his loans qualified and would be repaid.  However, after
serving one year on active duty and submitting applications for payment
under the LRP, he was informed by the Education Incentives and Counseling
Branch that three of his loans did not qualify under the LRP.  In an
attempt to rectify this situation, the applicant sought legal counsel and
tried to contact the MEPS guidance counselors.  Although the counselors
were retired at this time, the applicant made contact with one of them and
the counselor provided a statement in support of the applicant's claim.  In
addition, the applicant requested that a formal investigation be conducted
and a recommendation that the applicant's three student loans be paid in
full was made.

3.  The applicant provides five enclosures which are outlined on the
Attachments page submitted with his application.

CONSIDERATION OF EVIDENCE:

1.  The applicant entered the delayed entry program on 19 July 2002.  His
Statement for Enlistment, United States Army Incentive Enlistment Program,
shows he enlisted for the LRP up to a maximum repayment of $65,000.  On
this form, he 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 1965 and before he enlisted into
the Regular Army.  He also acknowledged he understood that he must
disenroll from the Montgomery GI Bill in order to qualify for the LRP.

2.  None of the applicant's enlistment documents (to include his DD Form
1966, Record of Military Processing - Armed Forces of the United States)
identified what student loans he had.  The remarks section on his DD Form
1966/4 indicates that promissory notes were provided on his ship date;
however, the number of promissory notes are not noted.

3.  The applicant enlisted in the Regular Army on 22 October 2002 for a
period of
5 years.
4.  On 11 August 2003, the applicant applied for repayment of his Sallie
Mae Servicing Corporation loan (a Private Loan) in the amount of $7,861.00.
 On
18 November 2003, the Education Incentives and Counseling Branch of the
U.S. Army Human Resources Command notified the applicant that this loan 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.

5.  On 11 August 2003, the applicant applied for repayment of his "AES"
loan
(a Gate/Private loan) in the amount of $12,295.78.  On 2 December 2003, the
Education Incentives and Counseling Branch of the U.S. Army Human Resources
Command notified the applicant that this loan 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.

6.  On 11 August 2003, the applicant applied for repayment of his "ACS"
loan
(a Private Loan) in the amount of $17,298.77.  On 28 October 2004, the
Education Incentives and Counseling Branch of the U.S. Army Human Resources
Command notified the applicant that this loan 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.  In October 2004, a Report of Investigation was conducted to determine
if the applicant's MEPS counselors improperly recruited him by falsely
advising him that all or some of his student loans would be repaid by the
Army after his enlistment.  The Commanding Officer concurred with the
investigating officer's findings that it was guidance counselor error.  He
stated that it was clear that the counselor erred when he qualified the
applicant's loans for repayment in July 2002 and that he failed to properly
enter on the applicant's DD Form 1966 the qualification of his loans as
required by Army Regulation 601-210.  The Commanding Officer recommended
that the case be closed as unsubstantiated as to the specific allegations,
but he cited the guidance counselor for error.  He also recommended that an
exception to policy be made in the case of student loan repayment for the
applicant.

8.  In support of his claim, the applicant provided a statement from the
MEPS guidance counselor that was cited for the error by the Report of
Investigation.  The guidance counselor states that when he was a guidance
counselor, he ensured that Soldiers that had the LRP had all documents on
hand and that he shipped them in accordance with Army Regulation 601-210.
He states that he did not ship the applicant to basic training knowing that
the loans would not be paid back.

9.  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, 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.

10.  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.

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) stated 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 the 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 to 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 the applicant enlisted for the LRP
incentive.  He had obtained student loans prior to his entry on active duty
and they were not in default prior to his entry on active duty.  It appears
that three of his loans qualified for repayment under the LRP; however,
three student loans did not meet the requirements for repayment under the
Higher Education Act and the LRP.

2.  It is noted that no entry was made in the remarks section of the
applicant's DD Form 1966 reflecting the three student loans' ineligibility
for repayment as required by regulation.

3.  A Report of Investigation was conducted to determine if the applicant's
MEPS counselors improperly recruited him by falsely advising him that all
or some of his student loans would be repaid by the Army after his
enlistment.  It was determined to be guidance counselor error and a
recommendation was given that an exception to policy be made in the case of
the applicant's student loan repayment.

4.  In the interest of justice and equity, it would be appropriate to
provide him the full LRP benefits outlined in his enlistment contract.

5.  The applicant's military records should be corrected to show his
Statement for Enlistment, United States Army Incentive Enlistment Program,
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 1975 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 institution would have been paid under the LRP.

BOARD VOTE:

JS_____  DJ______  MF______  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 Statement for Enlistment, United States Army Incentive
Enlistment Program, 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 1975 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 Sallie Mae Servicing Corporation Loan, the "AES" loan, and the "ACS"
loan in the amount of $37,455.55 (or to the maximum allowable limit of
$65,000, whichever is less) to which he is entitled as a result of this
correction at the appropriate rate and time. If required, the applicant
will submit the appropriate evidence (promissory notes, etc.) to the
Defense Finance and Accounting Service.



            ___John Slone________
                    CHAIRPERSON




                                    INDEX

|CASE ID                 |AR20040009681                           |
|SUFFIX                  |                                        |
|RECON                   |                                        |
|DATE BOARDED            |20050811                                |
|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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