RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:        19 October 2005
      DOCKET NUMBER:  AR20050004547


      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. Barbara J. Ellis              |     |Chairperson          |
|     |Mr. Hubert O. Fry, Jr.            |     |Member               |
|     |Mr. Robert Rogers                 |     |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 his private education loan in
the amount of $16,033.66 with Wells Fargo Educational Financial Services
(WFEFS)
be declared qualified for payment in accordance with the Army Student Loan
Repayment Program (SLRP).

2.  The applicant states, in effect, that upon enlisting in the military he
was led to believe all of his student loans met the criteria for payment in
accordance with the SLRP.  He has been advised that his WFEFS loan does not
meet the criteria for payment.  Therefore, he desires that the Board
examine the loan in question.

3.  The applicant provides in support of his request the following
documents:

      a.  Wells Fargo Collegiate Loan-Application and Promissory Note with
supporting documents, dated 30 August 2002.

      b.  Financial Aid Award Statement, dated 21 August 2002.

      c.  Orders Number 156-00420, Headquarters United States Army Field
Artillery Center, Fort Sill, Oklahoma, dated 4 June 2004.

      d.  Orders 208-046 Department of the Army, 64th Army General
Replacement Company, Germany, dated 26 July 2004.

CONSIDERATION OF EVIDENCE:

1.  On 18 September 2003, the applicant enlisted in the United States (US)
Army Reserve (USAR) for a period of 8 years under the Delayed Entry Program
(DEP). On 25 March 2004, he was separated from the DEP and enlisted in the
Regular Army for 5 years, the US Army High Grade Bonus, SLRP; training in
military occupational specialty (MOS) 92R (Cannon Crewmember), and the US
Army Cash Bonus in the amount of $16,000.00.

2.  The applicant's computer generated DA Form 1966/3 (Record of Military
Proceedings-Armed Forces of the United States), Section IV (Certification)
confirms he enlisted for:  the Army SLRP.  The applicant made application
for payment of his educational loans under the SLRP.  On an unknown date,
the US Army Human Resources Command (HRC), Alexandria, Virginia, notified
the applicant that his private education loan in the amount of $16,033.66
through WFEFS was not qualified for payment under the provisions of the
SLRP.  It was not made, insured, or guaranteed under Title IV, Part B, D,
or E of the Higher Education Act of 1965.
3.  In the processing of this case, an advisory opinion was obtained from
the HRC.  The advisory opinion states that the applicant's WFEFS loan in
the amount of $16,033.66 is a private loan and it does not qualify for
payment under the provisions of the SLRP, because it was not made, insured,
or guaranteed under Title IV, Part B, D, or E of the Higher Education Act
of 1965.  The applicant has other loans in the amount of $9,562.48 that do
qualify for payment under the provisions of the SLRP.  The HRC also
recommends disapproval of the applicant's request.  However, if the board
does authorize compensation, any amount so authorized, should be sent
directly to the applicant.

4.  The above advisory opinion was referred to the applicant for comment
or rebuttal, but he failed to respond.

5.  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 in the RA and Army Reserve.  It
contains guidance pertaining to Enlistment Option 9C (Bonus/Army College
Fund/Loan Repayment Program (SLRP) and indicates the Government will pay a
designated portion of any loan 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 1965 and before enlistment into the RA.

6.  Army Regulation 601-210 provides that Army Guidance Counselors are
required to accomplish specific counseling and administrative actions in
connection with processing members enlisting with the SLRP incentive.
These actions include ensuring members are disenrolled from the GI Bill;
verifying that members have qualifying loans; and advising members of any
loan that is not eligible.

7.  Army Regulation 601-210, also provides that Guidance Counselors are
specifically required to confirm that they accomplished all the processing
procedures by marking the appropriate entries on a Record of Military
Processing–Armed Forces of the United States DD Form 1966 and DA Form 3286-
66.

8.  The SLRP is a Department of the Army enlistment option authorized by
Public Law 99-145.  Loans that qualify for payment under the SLRP are
Guaranteed Student Loan/Stafford Loans, National Direct Student
Loan/Perkins Loans, William D. Ford Loans, Supplemental Loans for Students,
Federally Insured Student Loans, Parent Loans for Undergraduate Students,
Auxiliary Loan Assistance for Students, 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.
Active Army SLRP participants earn their first loan payment 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 $1,500.00, whichever is
greater, is authorized annually to the loan holder on the total remaining
original outstanding principal balance.  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 pay the lending institution.

9.  Title 10, U.S.C., section 1552, the law, which governs the operation of
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 payment 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 service
in the Army, Navy, Air Force, Marine Corps or Coast Guard, as the case may
be."

DISCUSSION AND CONCLUSIONS:

1.  The applicant's WFEFS private educational loan does not meet the
criteria established by law for payment under the SLRP; however, this is
not the overriding factor in this case given the equity considerations and
the resultant injustice.

2.  The applicant's enlistment contract clearly establishes a contractual
agreement between him and the Army; the contract provides that he will
receive SLRP benefits in connection with his active duty service.

3.  The applicant, based on information that is available, believed all of
his student loans were covered under the SLRP; therefore, he made a
decision to enlist.  Subsequently, it has been determined this information
is incorrect.

4.  As noted by the HRC, the applicant's contested loan, in the amount of
$16,033.66, is not insured under the Higher Education Act of 1965, because
it does not fall within this Act.  Therefore, there are no Army records
that the Board can correct that would allow payment of the applicant’s non-
qualifying loan under the SLRP.
5.  Notwithstanding the above, there is no evidence to indicate the
applicant was ever clearly told that his WFEFS, private educational loan
was not payable under the SLRP.  Therefore, the Board believes that equity
requires the Army to provide the applicant the SLRP benefits outlined in
his enlistment contract.

6.  In doing so, the applicant's military records may be corrected to show
his DA Form 1966 was amended to include the sentence "If a student loan is
accepted by the official processing a Soldier for enlistment as payable
under the SLRP and the government fails to verify that the student loan
accepted actually is eligible under the Higher Education Act of 1965 and
such a failure results in nonpayment of the loan or repayment or default of
the loan, the ABCMR may pay the applicant, 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 the applicant $16,033.66 for the non-
qualifying loan, which is the amount his lending institution would have
been paid had the loan qualified for payment.

BOARD VOTE:

__bje___  __hof___  ___rr___  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 DA Form 1966 be amended to include the sentence "If a
student loan is accepted by the official processing a Soldier for
enlistment as payable under the LRP and the government fails to verify that
the student loan accepted actually is eligible for payment under the Higher
Education Act and such a failure results in nonpayment of the loan or
default of the loan, the ABCMR may pay the loan, at its sole discretion, in
accordance with Title 10, U.S. Code, section 1552".
2.  As a result of the above correction, the Defense Finance and Accounting
Service (DFAS) shall remit to the applicant $16,033.66 for his non-
qualifying student loan.  The applicant will submit to DFAS any additional
evidence that may be required to support such payment.



                                        Barbara J. Ellis
                                  ______________________
                                            CHAIRPERSON



                                    INDEX

|CASE ID                 |AR20040004547                           |
|SUFFIX                  |                                        |
|RECON                   |                                        |
|DATE BOARDED            |20051019                                |
|TYPE OF DISCHARGE       |                                        |
|DATE OF DISCHARGE       |                                        |
|DISCHARGE AUTHORITY     |                                        |
|DISCHARGE REASON        |                                        |
|BOARD DECISION          |GRANT                                   |
|REVIEW AUTHORITY        |                                        |
|ISSUES         1.       |128.1400                                |
|2.                      |                                        |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |


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