RECORD OF PROCEEDINGS


	IN THE CASE OF:	  


	BOARD DATE:	  18 January 2006
	DOCKET NUMBER:  AR20050000883 


	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:


Ms. Shirley L. Powell

Chairperson

Mr. Chester A. Damian

Member

Ms. Karmin S. Jenkins

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 her US Army Reserve (USAR) enlistment contract be honored and that she be paid $10,000 under the Student Loan Repayment Program (SLRP).

2.  The applicant states she enlisted in the USAR on 8 December 1995 for the SLRP option and was told she qualified for a $10,000 payment.  When she submitted paperwork to obtain her SLRP payment she was denied based on her MOS (military occupational specialty) and enlistment date.

3.  The applicant provides in support of her request:

	a.  Enlistment Documents to include a DA Form 3286-67 (Statement of Understanding) and a DA Form 5261-4R (Student Loan Repayment Program Addendum), both dated 8 December 1995.

	b.  DD Form 2475 (DOD Educational Loan Annual Application), dated 
23 October 2003.

	c.   William D. Ford Federal Direct Loan Program Account Statements, dated between December 1996 and August 2001.

	d.  William D. Ford Federal Direct Loan Program Promissory Notes, dated between September 1997 and July 1999.

	e.  DA Form 2A (Personnel Qualification Record), dated 8 May 2003.

	f.  Memorandum, Headquarters, Fort McCoy, Fort McCoy, Wisconsin, dated 20 and 23 May 2002.

	g.  Memorandum, Headquarters, 81st Regional Readiness Command, Birmingham, Alabama, dated 1 May 2003 and 26 March 2004.

	h.  Department of the Army, 2125th Garrison Support Unit, Decatur, Georgia, dated 29 October 2002.

	i.  FY96 Selected Reserve Incentive Program (SRIP) Bonus List.


CONSIDERATION OF EVIDENCE:

1.  The applicant’s DA Form 4/1 (Enlistment/Reenlistment Document-Armed Forces of the United States) shows that, on 8 December 1995, she enlisted in the USAR for 8 years in pay grade E-1.

2.  During the enlistment process, the applicant signed a DA Form 3286-67 (Statement of Understanding), acknowledging she was enlisting for MOS 73C (Finance Specialist) and that the MOS qualified for a $10,000 loan repayment under the SLRP.

3.  The applicant also signed a DA Form 5261-4-R (Student Loan Repayment Program Addendum) showing that she was enlisting in the USAR for assignment to the 2125th United States Army Garrison (USAG), Decatur, Georgia, and training in MOS 73C which had been approved for the SLRP, and a maximum of $10,000.00 in loan repayments.

4.  The applicant's DA Form 5261-4-R also shows she 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 1965.  In addition, qualified loans made by the applicant while a member of the Selected Reserve during the contractual term of service would also be paid in part under this incentive.
Repayment will be made after each year of satisfactory service in the Selective Reserve after securing the loans and reaching the anniversary date of the agreement.  The applicant acknowledged that she will receive a maximum of $10,000.00 during her military career, a portion or amount of her student loan that may be repaid each year will not exceed 15 percent of the original balance, a maximum of $1,500.00 or $500.00, whichever is greater, plus the accrued interest.

5.  After several failed attempts to get her loans paid, the applicant sought the assistance of her chain of command.  On 23 May 2002, her commander was advised that MOS 73C, listed on the applicant's DA Form 5261-4-R signed on 8 December 1995, was not a qualifying MOS at the time of execution.  MOS 73C was qualifying in FY96 for reenlistment, not for enlistment.

6.  The applicant served honorably for 9 years and 1 month.  She fulfilled her obligation and she was honorably discharged.

7.  In the processing of this case, on 8 December 2005, an advisory opinion was provided by the Office of the Deputy Chief of Staff, G-1, Headquarters Department of the Army, Washington, DC.  It indicates that the applicant's contract of 8 December 1995 shows she was to be paid $10,000.00 in accordance with the SLRP.  Based on the applicant's enlistment date and MOS, she was not qualified to receive the SLRP and that it was incorrectly listed on her contract.  This incorrect option was not the fault of the applicant.  She enlisted in good faith and tried all available channels to rectify this mistake.  The G-1 recommends that the applicant be allowed full payment of $10,000.00 in accordance with the SLRP.

8.  On 9 December 2005, a copy of the advisory opinion was provided to the applicant for comment or rebuttal and she did not respond during the given time frame.

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 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.  At the time the applicant enlisted in the USAR, participants earned their first loan repayment after satisfactory completion of a full year of active duty and for each full year thereafter.  Payment of 15 percent or $1,500, whichever was greater, plus interest was authorized annually to the loan holder on the total remaining original outstanding principal balance.  

10.  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.  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.

11.  Army Regulation 601-210 also provides that guidance counselors will confirm specific processing procedures have been accomplished by making the appropriate entries in the DA Form 3286-67 and DA Form 5261-4-R.  

12.  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.  The applicant signed an enlistment contract that authorized the payment of $10,000 under the SLRP based on her enlistment MOS.  She enlisted in the USAR in good faith, expecting the payment was authorized for her MOS.

2.  Subsequently, it was determined that the applicant's MOS did not qualify for participation in the SLRP under the initial enlistment option, although her enlistment contract clearly authorized this entitlement.

3.  Counselors are required to verify that a Soldier has a qualifying MOS for the SLRP and that the enlistment contract is properly documented.  In the applicant's case, it appears that recruitment personnel failed to follow established regulatory guidance in processing the applicant for the SLRP option.  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 the full amount of $10,000.00.  The G-1 advisory opinion also recommends this course of action.

4.  Accordingly, it would now be in the interest of justice to correct the applicant’s record to show that, as an exception to policy, she was authorized enlistment in the USAR on 8 December 1995 in MOS 73C, for 8 years, and that the MOS qualified for a $10,000 loan repayment under the SLRP.
BOARD VOTE:

__slp ___  __cad  ___  __ksj ___  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 all Department of the Army records of the individual concerned be corrected by showing that as an exception to policy she was authorized to enlist in the USAR on 8 December 1995 in MOS 73C, for 8 years, and that the MOS qualified for a $10,000 loan repayment under the SLRP.

2.  As a result of the foregoing correction, the Defense Finance and Accounting Service (DFAS) shall remit payment to the applicant the total amount of her SLRP entitlement, in the amount of $10,000.00.  If required, the applicant will submit to DFAS any additional evidence that may be required to support such payment.



							Shirley L. Powell
 _____________________
          CHAIRPERSON



INDEX

CASE ID
AR2005000883
SUFFIX

RECON

DATE BOARDED
20060118
TYPE OF DISCHARGE

DATE OF DISCHARGE

DISCHARGE AUTHORITY

DISCHARGE REASON

BOARD DECISION
GRANT
REVIEW AUTHORITY

ISSUES         1.
112.1200
2.

3.

4.