RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:        17 November 2005
      DOCKET NUMBER:  AR20050004001


      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             |
|     |Mr. David S. Griffin              |     |Analyst              |


      The following members, a quorum, were present:

|     |Mr. Lester Echols                 |     |Chairperson          |
|     |Mr. John E. Denning               |     |Member               |
|     |Ms. Jeanette R. 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, repayment of all of her student
loans.

2.  The applicant states, in effect, that she was not counseled that some
of her loans would not be covered by the Loan Repayment Program (LRP).

3.  The applicant provides a copy of DOD Educational Loan Repayment Program
(LRP) Annual Applications that were submitted on 28 November 2004, to Human
Resources Command (HRC), Alexandria, Virginia, for the following loans:

      a.  a signature student loan, dated 1 April 2002, with an unpaid
balance of $8,338.09;

      b.  a signature student loan, dated 23 January 2003, with an unpaid
balance of $5,458.58; and

      c.  a signature student loan, dated 14 January 2004, with an unpaid
balance of $2,524.82.

CONSIDERATION OF EVIDENCE:

1.  The applicant entered the delayed entry program on 11 December 2003.
Her Statement for Enlistment, United States Army Enlistment Program, shows
she enlisted for the LRP.  On this form, she acknowledged that under the
LRP the government would repay a designated portion of any loan she
incurred that was made, insured or guaranteed under Part B, Part D, or Part
E of the Higher Education Act of 1965, after 1 October 1975, and before she
enlisted into the Regular Army.  She also acknowledged she understood that
she must disenroll from the Montgomery GI Bill in order to qualify for the
LRP.

2.  None of the applicant's enlistment documents identified her student
loans.

3.  The applicant enlisted in the Regular Army on 5 February 2004 for a
period of 4 years.

4.  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.

5.  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.

6.  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.

7.  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.

8.  U. S. Army Recruiting Command Regulation 621-1 (Montgomery GI Bill,
Army College Fund, and Loan Repayment Program), paragraph 4-4a states that
applicants for the LRP are not authorized to ship to training without
documents or verification of eligible loans.

9.  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."


10.  In the processing of this case an advisory opinion was obtained from
the HRC.  On 31 March 2005, the HRC stated that the applicant’s Signature
Student Loans in the amount of $16,321.49 do not qualify for repayment
under the LRP because they were not made, insured, or guaranteed under the
Higher Education Act of 1965.  The HRC adds that the applicant does have
other student loans in the amount of $11,250.00 which qualify for repayment
and appropriate payment has been authorized toward her qualifying loans for
her first year of active duty.  The HRC recommends disapproval of the
applicant’s request.

DISCUSSION AND CONCLUSIONS:

1.  The evidence of record shows the applicant enlisted for the LRP
incentive.  She had obtained student loans prior to her entry on active
duty and they were not in default prior to her entry on active duty.  It
appears 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 student loans ineligibility for
repayment as required by regulation.  Since the total amount ($16,321.49)
of her three ineligible loans was greater than the amount ($11,250.00) of
her eligible loans, it is reasonable to presume she showed the ineligible
loans to her recruiter for assurance that they, too, would be repaid under
the LRP.  In the interest of justice and equity, it would be appropriate to
provide her the full LRP benefits outlined in her enlistment contract.

3.  The applicant's military records should be corrected to show her
Statement for Enlistment, United States Army 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 her the amount
her lending institution would have been paid under the LRP.

BOARD VOTE:

___jrm___  ____le__  ___jed __  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
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 the total amount of
her Signature Loans, in the amount of $16,321.49, to which she is entitled
as a result of this correction.  If required, the applicant will submit the
appropriate evidence (promissory notes, etc.) to the Defense Finance and
Accounting Service.




            _________Lester Echols_____________
                    CHAIRPERSON



                                    INDEX

|CASE ID                 |AR20050004001                           |
|SUFFIX                  |                                        |
|RECON                   |YYYYMMDD                                |
|DATE BOARDED            |20051117                                |
|TYPE OF DISCHARGE       |(HD, GD, UOTHC, UD, BCD, DD, UNCHAR)    |
|DATE OF DISCHARGE       |YYYYMMDD                                |
|DISCHARGE AUTHORITY     |AR . . . . .                            |
|DISCHARGE REASON        |                                        |
|BOARD DECISION          |GRANT                                   |
|REVIEW AUTHORITY        |                                        |
|ISSUES         1.       |                                        |
|2.                      |                                        |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |




1.  She enlisted in the Army Reserve (USAR) Delayed Entry Program on
11 December 2003.  At that time she executed a Statement for Enlistment,
United States Army Enlistment Program, U.S. Army Delayed Enlistment
Program.  Item 3d of that form states that, “I understand that under this
program (LRP) that the government will repay a designated portion of any
loan I 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 I enlist into the Regular Army.”

2.  Item 3d further states that "In addition, I understand that I must
bring copies of ALL my student loan promissory notes when I report to the
MEPS (Military Entrance Processing Station) for active duty ship date."

3.  The applicant enlisted in the Regular Army for 4 years on 5 February
2004.  At that time she executed a Statement for Enlistment, United States
Army Enlistment Program.  Item 2a of that form states that, “I understand
that under this program (LRP) that the government will repay a designated
portion of any loan I 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 I enlist into the Regular Army.”

4.  In the processing of this case an advisory opinion was obtained from
the HRC.  On 31 March 2005, the HRC stated that the applicant’s Signature
Student Loans do not qualify for repayment under the LRP because they were
not made, insured, or guaranteed under the Higher Education Act of 1965.
The HRC adds that the applicant does have other student loans which qualify
for repayment and appropriate payment has been authorized toward her
qualifying loans for her first year of active duty.  The HRC recommends
disapproval of the applicant’s request.

5.  On 18 April 2005, the applicant was provided a copy of the advisory
opinion for her information and possible rebuttal.  No rebuttal or comment
has been received from the applicant.

6.  The LRP 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.

7.  10 USC 2171 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.

8.  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 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 applicant contends that all of her student loans should be repaid
because she was not counseled concerning which loans would qualify for
repayment.

2.  The evidence shows that the applicant executed two statements wherein
she acknowledged that only specific loans 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 would be
repaid.  Therefore, the applicant was aware of the requirements for the
type of loan to qualify under the LRP.

3.  The applicant has other loans that qualify under the LRP and are being
paid.

4.  The applicant has not submitted any documentation which would show that
the denial of her request for payment of her three loans which did not
qualify under the LRP was an error or injustice.

BOARD VOTE:

________  ________  ________  GRANT FULL RELIEF

________  ________  ________  GRANT PARTIAL RELIEF

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

BOARD DETERMINATION/RECOMMENDATION:

The evidence presented does not demonstrate the existence of a probable
error or injustice.  Therefore, the Board determined that the overall
merits of this case are insufficient as a basis for correction of the
records of the individual concerned.





                                  ______________________
                                            CHAIRPERSON



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