RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:          20 October 2005
      DOCKET NUMBER:  AR20050009196


      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 Meixell                  |     |Chairperson          |
|     |Mr. James Gunlicks                |     |Member               |
|     |Ms. Jeanette 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, that the Army repay a student loan
under the Loan Repayment Program (LRP).

2.  The applicant states, in effect, he was misled during his enlistment
process about repayment of his student loans.  He contends he was informed
that only one loan (a GATE Private Loan), out of five student loans, would
not qualify under the LRP.  He also states that his qualifying loans were
being paid until this year.

3.  The applicant provides a letter, dated 20 November 2002, from the U.S.
Army Human Resources Command; a DD Form 2475 (DOD Educational Loan
Repayment Program (LRP) Annual Application), dated 27 October 2002; a
student loan application, dated 2000; a DD Form 1966/4 (continuation of DD
Form 1966/1 (Record of Military Processing - Armed Forces of the United
States)); a letter, dated 12 February 2003, from the U.S. Army Human
Resources Command; a DD Form 2475, dated 27 October 2002; an educational
loan application and promissory note; a letter, dated 20 April 2005, from
the U.S. Army Human Resources Command; and loan payment statements.

CONSIDERATION OF EVIDENCE:

1.  The applicant entered the delayed entry program on 10 January 2002.
His DA Form 3286-66 (Statement of Understanding, United States Army
Incentive Program) shows he enlisted for the LRP.  On this form 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.  Section VI (Remarks) on the applicant's DD Form 1966/4 shows the entry,
"I understand that my GATE loan does not qualify for loan repayment option.
 LRP mailed out 2002/02/24."

3.  The applicant enlisted in the Regular Army on 20 February 2002 for a
period of 5 years.

4.  On 27 October 2002, the applicant applied for repayment of his ACS Loan
(a Private Loan) in the amount of $3,339.17.  On 12 February 2003, 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.

5.  In the processing of his case, an advisory opinion was prepared by the
Chief, Education Incentives Branch of the U.S. Army Human Resources
Command.  The advisory opinion recommended disapproval of the applicant's
request.  The $3000 ACS Private Loan did not qualify for repayment under
the LRP.  The loan was not made, insured, or guaranteed under Title IV,
Part B, D, or E of the Higher Education Act of 1965.  That office pointed
out that the applicant understood his GATE Private Loan did not qualify for
repayment under the LRP; however, he did not mention his Private Loan
totaling $3000 from ACS.  Since the applicant realized the GATE Private
Loan would receive no compensation it stood to reason he understood all
Private Loans would not qualify.  That office also pointed out that the
applicant claimed his qualifying loans were not being paid.  However, their
records show that payments were disbursed on the original unpaid principal
balances borrowed.

6.  A copy of the advisory opinion was provided to the applicant for
comment; however, he did not respond within the given time frame.

7.  On 19 October 2005, the Education Incentives Branch of the U. S. Army
Human Resources Command informed the Board analyst the applicant had a
total of $22,336.71 in eligible student loans.

8.  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.

9.  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.
10.  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.

11.  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.

12.  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.

13.  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 $3000 ACS Loan did not meet the requirements for repayment
under the Higher Education Act and the LRP.

2.  Since the applicant's DD Form 1966/4 indicates that he understood his
GATE Loan did not qualify under the LRP, it is reasonable to presume he
showed all of his student loans, including the $3000 ACS Loan, to his
recruiter to receive his assurance they qualified for repayment.

3.  The U. S. Army Human Resource Command's comment, in their advisory
opinion, that since the applicant realized the GATE Private Loan would
receive no compensation it stood to reason he understood all private loans
would not qualify is understandable from their point of view.  However, the
applicant does not work with the loan repayment program on a regular basis.
 There is a slight difference between a GATE Private Loan and an ACS
Private Loan.  It is not reasonable for the applicant to have automatically
known that, as they were both private loans, neither was eligible for
repayment.  His recruiting officials, however, should have known, and yet
they did not include the ACS Private Loan as an ineligible loan on the
applicant's DD Form 1966.

4.  In the interest of justice and equity, it would be appropriate to
provide him the full LRP benefits outlined in his enlistment contract.

5.  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:

JM_____  JG______  JM______  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 ACS Loan in the amount of $3,339.17 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 Meixell_________
                    CHAIRPERSON




                                    INDEX

|CASE ID                 |AR20050009196                           |
|SUFFIX                  |                                        |
|RECON                   |                                        |
|DATE BOARDED            |20051020                                |
|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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