RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:           10 November 2005
      DOCKET NUMBER:  AR20050005992


      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             |
|     |Mrs. Nancy L. Amos                |     |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, in effect, that all his student loans be paid
off under the Loan Repayment Program (LRP).

2.  The applicant states his loan documentation was collected by both his
recruiting station and the Military Entrance Processing Station.  None of
his loans were rejected and there were no problems with the loans until he
submitted his DD Forms 2475 (DOD Educational Loan Repayment Program (LRP)
Annual Application).  He had been assured his loans were OK under the LRP.

3.  The applicant provides a letter of support, dated 24 March 2005, from
his commander; four DD Forms 2475, all signed by the certifying officer on
              9 December 2004, with related loan applications; a portion of
his enlistment contract; and two letters from the Acting Chief, Education
Incentives Branch,     U. S. Army Human Resources Command (USAHRC), dated
28 December 2004 and 10 January 2005.

CONSIDERATION OF EVIDENCE:

1.  The applicant enlisted in the Delay Entry Program on 25 March 2002
under the College First Program.  He enlisted in the Regular Army on 5 May
2004.  Prior to entry on active duty he had obtained six student loans.

2.  The applicant's DA Form 3286-66 (Statement of Understanding United
States Army Incentive Enlistment Program) shows he enlisted for the LRP up
to a maximum repayment of $65,000 and for the Army Training Enlistment
Program.

3.  The applicant's DD Form 1966 (Record of Military Processing - Armed
Forces of the United States) does not identify what student loans he had
other than to state he was authorized the LRP.

4.  By letter dated 28 December 2004, the Education Incentives Branch,
USAHRC informed him his Sallie Mae Servicing Corporation loans in the
amount of $23,826.45 were Signature Student Loans, which also did not
qualify for repayment under the LRP.  (The DD Form 2475 was signed by the
loan officer on 9 December 2004.)  By letter dated 10 January 2005, the
Education Incentives Branch, USAHRC informed the applicant his Wells Fargo
Bank loan in the amount of $3,518.71 was a Collegiate Loan which did not
qualify for repayment under the LRP.  (The DD Form 2475 was signed by the
loan officer on 9 December 2004.)

5.  On 6 September 2005, the Education Incentives Branch, USAHRC informed
the Board analyst that the applicant had four qualifying loans -- a Bentley
College Perkins loan for $1,200; a Sallie Mae Stafford loan for $11,625; an
ACS PLUS loan for $13,667; and an AES Stafford loan for $3,451, for a total
of $29,943 in qualifying loans.

6.  In September 2005, the applicant informed the Board analyst he had two
additional loans that were not repaid – a Citibank CitiAssist Loan for
$5,134.84  (a letter was signed by the loan officer on 6 December 2004) and
an ACS – Education Services (Massachusetts No Interest Loan) for $3,000.00
(the DD Form 2475 was signed by the loan officer on 2 February 2005).
Citibank USA, N.A. had notified the applicant by letter dated 6 December
2004 that his CitiAssist loan was not eligible for reimbursement.

7.  On 13 October 2005, the Chief, Education Incentives Branch, USAHRC
advised the Board the $5,134.84 and the $3,000.00 loans did not qualify for
repayment under the LRP.  That office also noted that the total outstanding
balance on the non-qualifying Private Loan and Tuition Loan is $35,480.00,
which would make the total principal verified for all loans $65,423.00.
That would exceed the maximum limit of $65,000.00 imposed by the Department
of the Army.  That office recommended, 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 and any amount so
authorized should be sent directly to him in the amount of $35,057.00.

8.  A copy of the 13 October 2005 advisory opinion was provided to the
applicant for comment or rebuttal.  He responded by agreeing with the
paragraph regarding the amount of $35,057.00 recommended by the Education
Incentives Branch to be authorized to him.

9.  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 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
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.

10.  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.

11.  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) states these
programs/options are designed to merge valid Army requirements with
personal desires.

12.  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 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 same in the remarks section of the DD
Form 1966 series.

13.  Title 10, U. S. Code, section 1552, the law which provides for the
Board, states, “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 evidence of record shows the applicant enlisted for the LRP
incentive up to $65,000.  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.

2.  Four of the applicant's loans, for a total amount of $29,943, qualified
for repayment under the LRP.  However, four other loans -- his Wells Fargo
Bank loan in the amount of $3,518.71, his Sallie Mae Servicing Corporation
loans in the amount of $23,826.45, his Citibank CitiAssist Loan for
$5,134.84, and his ACS – Education Services (Massachusetts No Interest
Loan) for $3,000.00 did not qualify for repayment under the LRP.  There is
no evidence to show and the Education Incentives Branch, USAHRC did not
indicate that any of these loans were in default prior to his entering
active duty.

3.  No entry was made in the remarks section of the applicant's DD Form
1966 reflecting any loan's ineligibility for repayment under the LRP as
required by regulation.  His Sallie Mae Servicing Corporation loans alone
almost equaled the total of his four qualifying loans.  It appears
reasonable to presume the applicant did receive assurance his largest loan
qualified for repayment before he signed his enlistment contract.  Any
reasonable doubt concerning the counseling the applicant received on the
eligibility of all his student loans should be resolved in the applicant's
favor.

4.  The applicant enlisted for the LRP up to a maximum repayment of
$65,000.  The total of all his loans is $65,423.00; therefore, the
Education Incentives Branch, USAHRC recommended that, if the Board decided
to grant compensation, that any amount so authorized should be sent
directly to him in the amount of $35,057.00.

5.  In the interest of justice and equity, it would be appropriate to
provide the applicant the full LRP benefits outlined in his enlistment
contract for the full period of that contract.  The DFAS will be requested
to establish a debt should he not serve the required active duty.

6.  The applicant’s military records may be corrected to show his DA Form
3286-66 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 institutions
would have been paid under the LRP.

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 DA Form 3286-66 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 $35,057.00 to which
he is entitled as a result of this correction and advise him if he does not
serve the required active duty a debt will be established.




            _Margaret K. Patterson
                    CHAIRPERSON




                                    INDEX

|CASE ID                 |AR20050005992                           |
|SUFFIX                  |                                        |
|RECON                   |                                        |
|DATE BOARDED            |20051110                                |
|TYPE OF DISCHARGE       |                                        |
|DATE OF DISCHARGE       |                                        |
|DISCHARGE AUTHORITY     |                                        |
|DISCHARGE REASON        |                                        |
|BOARD DECISION          |GRANT                                   |
|REVIEW AUTHORITY        |Mr. Schneider                           |
|ISSUES         1.       |112.12                                  |
|2.                      |                                        |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |


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