RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:           20 October 2005
      DOCKET NUMBER:  AR20050001487


      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 Meixell                  |     |Chairperson          |
|     |Mr. James Gunlicks                |     |Member               |
|     |Ms. Jeanette McCants              |     |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 a student loan
under the Loan Repayment Program (LRP).

2.  The applicant states, in effect, he processed all the paperwork for the
Army to pay off six student loans and his recruiter told him the paperwork
was correct and that the Army would pay for all of his student loans.  Five
loans were approved and one loan was disapproved because it was a Private
Loan.

3.  The applicant provides a letter, dated 9 March 2004, from the U.S. Army
Human Resources Command and two DD Forms 2475 (DOD Educational Loan
Repayment Program (LRP) Annual Application), dated 1 January 2004.

CONSIDERATION OF EVIDENCE:

1.  The applicant entered the delayed entry program on 13 January 2003.
His Statement for Enlistment, United States Army Incentive Enlistment
Program, shows he enlisted for the LRP.  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 or Part E of
the Higher Education Act of 1965, after 1 October 1975, 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 his student loans.

3.  The applicant enlisted in the Regular Army on 27 January 2003 for a
period of
6 years.

4.  On 1 January 2004, the applicant applied for repayment of his Wells
Fargo Loan (a Private Loan) in the amount of $9,884.58. On 9 March 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.

5.  In the processing of his case, an advisory opinion was prepared by the
Acting Chief, Education Incentives Branch of the U.S. Army Human Resources
Command.  The advisory opinion recommended disapproval of the applicant's
request.  The Private Loan (Wells Fargo) did not qualify for repayment
under the LRP.  The loan was not made, insured, or guaranteed under Title
IV, Part B, D, or E of the Higher Education Act of 1965.  There are no
exceptions to the law; therefore, payment cannot be authorized on his non-
qualifying loan.  It was noted the applicant had other loans that qualified
for repayment under the LRP.  That office recommended that, if the Board
decided to grant compensation, that the computation of any payment be based
on the information provided in the applicant's case paperwork.  The total
outstanding balance on the non-qualifying Private Loan is $9,884.58.  A
copy of the advisory opinion was provided to the applicant for comment.

6.  On 9 April 2005, the applicant submitted a rebuttal to the advisory
opinion.  In summary, he stated that it was extremely disturbing to him to
find out, two years after the fact, that one of his student loans did not
qualify under the LRP after he joined the Army in good faith and believed
the recruiter when he told him that all of his student loans would be paid
by the Army.  He strongly recommended that if the Army is going to offer
such a program, an easier method for the LRP incentive be implemented.

7.  On 13 October 2005, the Education Incentives Branch of the U.S. Army
Human Resources Command informed the Board analyst the applicant had
eligible student loans in the total amount of $22,400.30.

8.  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.

9.  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.

10.  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.

11.  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.

12.  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.

13.  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 a student loan prior to his entry on active
duty and it was not in default prior to his entry on active duty.  It
appears this student loan 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 student loan's ineligibility for
repayment as required by regulation.  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 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 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 institution would have been paid under the LRP.

BOARD VOTE:

JM_____  JG______  JM______  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 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 Wells Fargo Loan in the amount of $9,884.58 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 Meixell______
                    CHAIRPERSON

                                    INDEX

|CASE ID                 |AR20050001487                           |
|SUFFIX                  |                                        |
|RECON                   |                                        |
|DATE BOARDED            |20051020                                |
|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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