RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:        10 November 2005
      DOCKET NUMBER:  AR20050005940


      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. Margaret K. Patterson         |     |Chairperson          |
|     |Ms. Linda D. Simmons              |     |Member               |
|     |Mr. Michael J. Flynn              |     |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 that his student loan be paid in accordance with
his enlistment option for the Army Student Loan Repayment Program (SLRP).

2.  The applicant states, in effect, that he enlisted for the SLRP as an
option in his enlistment contract and that the recruiter/guidance counselor
told him that his loans qualified for the SLRP.  Now, the Army is telling
him that his Sallie Mae Servicing Corporation (SMSC) loans totaling
$85,345.01 do not qualify for payment under the SLRP.  He states he was
assured his loans qualified for payment by his recruiter, a counselor at
the Military Entrance Processing Station (MEPS), and by a civilian
counselor at the 30th Adjutant General Processing Station.

3.  The applicant provides in support of his request:

      a.  SMSC Loan-Applications and Promissory Notes, dated 10 June 2000, 5
September 2002, and 22 May 2003.

      b.  Computer-generated DA Form 1966/1-1966/4 (Record of Military
Processing-Armed Forces of the United States).

      c.  Enlistment Reservation for 17 July 2003.


      d.  Letter from the United States (US) Army Human Resources Command
(HRC), Alexandria, Virginia, dated 27 January 2005.

CONSIDERATION OF EVIDENCE:

1.  On 17 July 2003, the applicant enlisted in the Delayed Entry Program
(DEP).  His Statement for Enlistment – US Army Enlistment Program shows he
enlisted for:  Option 9B, the US Army Unit/Command/Area Enlistment Program,
and; Option 9C, US Army Incentive Enlistment Program for a cash bonus and
high graduate bonus ($9,000), and the SLRP ( to a maximum amount of
$65,000).  The applicant authenticated his Statement for Enlistment
indicating that he understood the provisions of the SLRP.

2.  On 24 February 2004, the applicant entered on active duty for a period
of 4 years.  His computer-generated Statement for Enlistment – US Army
Enlistment Program, confirms he enlisted for the SLRP.

3.  The evidence of record shows the applicant is currently serving on
active duty in the rank of Specialist/E-4.  On an unknown date, he
submitted DD Form 2475 (DOD Educational Loan Repayment Program Annual
Application) seeking repayment of his student loans.

4.  On 27 January 2005, the US Army Human Resources Command (HRC) notified
the applicant that his SMSC loans in the amount of $85,345.01 did not
qualify for repayment under the provisions of the SLRP, because they were
not made, insured, or guaranteed under Title IV, Part B, D, or E of the
Higher Education Act of 1965.  He was also notified that the loans exceeded
the maximum limit of $65,000.00 imposed for payment by the Department of
the Army.

5.  There is no evidence the applicant has any other loans that did qualify
for payment under the provisions of the SLRP.

6.  Army Regulation 601-210 (RA 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/SLRP).
 Chapter
9 (Enlistment Programs/Options) indicates that these programs/options are
designed to merge valid Army Requirements with personal desires.

7.  Table 9-4 of AR 601-210 contains guidance on enlistment option program
9C (Bonus/Army College Fund/Loan Repayment Program).  It contains specific
guidance pertaining to the SLRP and indicates that the Government will
repay a designated portion (up to $65,000) 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 1975 and before enlistment
into the RA."

8.  Table 9-4 also provides program-processing procedures that require Army
Guidance Counselors to complete required entries on the DD Form 1966
pertaining to an applicant’s eligibility for the SLRP.  Part of the
mandatory processing procedures includes verification that the applicant
has qualifying loans if enlisting for the S LRP, and that the applicant be
advised of any loan that is not eligible.  The applicant must acknowledge
these conditions by authenticating his Statement for Enlistment – US Army
Enlistment Program.

9.  The regulation further states that Guidance Counselors are specifically
required to confirm they accomplished all the processing procedures by
making the appropriate entries on a Record of Military Processing - Armed
Forces of the
United States (DD Form 1966) and DA Form 3286-66.  This includes a
statement advising members of any loan he or she has that is not eligible
for repayment and ensuring the applicant’s acknowledgement of this fact is
also recorded in the remarks section of the DD Form 1966.

10.  Title 10, U.S. Code, 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 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's SMSC loans do 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, based on information provided by his recruiter/guidance
counselor that his SMSC loans were covered under the SLRP, made his
decision to enlist.  Now, it has been determined that this information is
incorrect.

3.  The contested loans are not insured under the Higher Education Act of
1965 and do not fall within that Act.  Therefore, there are no Army records
that can be corrected that would allow the repayment of the applicant's
loans under the SLRP.

4.  Notwithstanding the above, there is no evidence to indicate that, prior
to enlisting, the applicant was ever clearly told his SMSC loans were not
repayable under the SLRP.  The available evidence of record shows the
applicant provided the appropriate loan documentation to his recruiter.

5.  The regulatory citations in the evidence of record shows that it is the
responsibility of recruiting personnel to review all student loan
agreements prior to enlisting the Soldier to ensure that the Soldier knows
exactly which loans qualify for repayment under the SLRP prior to
enlistment.

6.  The evidence of record shows the applicant's recruiter did not verify
any of the applicant's loans as qualifying for the SLRP on DD Form 1966/4,
Section VI –Remarks.  DD Form 1966/4, Section VI –Remarks of his enlistment
contract makes no mention of the SLRP.

7.  The applicant enlisted in good faith believing that the Army would
honor its commitment and pay his student loans.  The applicant completed
basic training basic airborne training and is assigned to Company A, 2nd
Battalion, 75th Ranger Regiment.  The applicant is keeping his commitment
and is honorably serving his country.

8.  The applicant was improperly counseled in regard to LRP benefits, thus
leading to an injustice.  It is concluded that it would be appropriate to
rectify this injustice at this time.  Therefore, in the interest of justice
and equity, it would be appropriate to provide the applicant the LRP
benefits outlined in his enlistment contract.

9.  In doing so, the applicant’s military records may be corrected to show
his Statement for Enlistment – US Army Enlistment Program was amended to
include the sentence, “If a student loan is accepted by the official
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 for his loan disbursed in August
2001 (up to $65,000).

10.  There are no provisions available for repayment of the applicant's
student loans in excess of $65,000

BOARD VOTE:

__mkp___  __lds___  __mjf___  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 the
applicant’s Statement for Enlistment – US Army Enlistment Program be
amended to include the sentence “If a student loan is accepted by the
official processing you for
enlistment as payable under the SLRP, and the government fails to verify
that the accepted student loan actually is eligible under the Higher
Education Act of 1965, and such failure results in nonpayment of the loan
by the SLRP, or the repayment or default of the loan, the Army Board for
Correction of Military Records may, at its sole discretion, pay the loan in
accordance with Title 10, U.S. Code, section 1552.”

2.  That as a result of the above correction the Defense Finance and
Accounting Service (DFAS) shall remit payment to the applicant in the
amount of the legal limit of $65,000.00, to which he is entitled as a
result of this correction.  If required, the applicant will submit the
appropriate evidence (promissory notes, etc.) to the DFAS.



                                        Margaret K. Patterson
                                  ______________________
                                            CHAIRPERSON



                                    INDEX

|CASE ID                 |AR20050005490                           |
|SUFFIX                  |                                        |
|RECON                   |                                        |
|DATE BOARDED            |20051110                                |
|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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