RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:          18 October 2005
      DOCKET NUMBER:  AR20050003996


      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. Linda Simmons                 |     |Member               |
|     |Mr. Kenneth Lapin                 |     |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, when he took this loan out his college
counselor assured him that it would be eligible for repayment by the
military if he enlisted.  He contends that he confirmed this information
with a local Army recruiter and that the recruiter assured him that it
would be paid off with a 3 year enlistment.

3.  The applicant provides a letter, dated 19 July 2004, from the U.S. Army
Human Resources Command and one DD Form 2475 (DOD Educational Loan
Repayment Program (LRP) Annual Application), dated 17 June 2004.

CONSIDERATION OF EVIDENCE:

1.  The applicant entered the delayed entry program on 9 June 2003.  His
enlistment contract shows he enlisted for the LRP.  On his DA Form 3286-66
(Statement of Understanding, United States Army Incentive Program) 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 loan.

3.  The applicant enlisted in the Regular Army on 30 October 2003 for a
period of
5 years.

4.  On 17 June 2004, the applicant applied for repayment of his Sallie Mae
Loan (a Signature Loan) in the amount of $19,179.45.  On 19 July 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.  (On 28 September 2005, the U. S.
Army Human Resources Command informed the Board analyst the applicant had
several other Sallie Mae loans, in the amount of $26,382.76, that did
qualify for repayment under the LRP.)

5.  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.

6.  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.

7.  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.

8.  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.

9.  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.

10.  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 several student loans prior to his entry on
active duty and they were not in default prior to his entry on active duty.
 It appears his Sallie Mae Signature Loan, which was for almost three-
quarters the amount of his other loans, did not meet the requirements for
repayment under the Higher Education Act and the LRP.  It is reasonable to
presume he showed this loan to his recruiter to receive his assurance it
qualified for repayment.

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:

JS_____  _LS_____  __KL____  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 Salle Mae Loan in the amount of $19,179.45 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                 |AR20050003996                           |
|SUFFIX                  |                                        |
|RECON                   |                                        |
|DATE BOARDED            |20051018                                |
|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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