RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:        20 October 2005
      DOCKET NUMBER:  AR20050009248


      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. G. E. Vandenberg              |     |Analyst              |


      The following members, a quorum, were present:

|     |Mr. John T. Meixell               |     |Chairperson          |
|     |Mr. James B. Gunlicks             |     |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 that all of her student loans be paid under the
Student Loan Repayment Program (LRP).

2.  The applicant states that she was counseled at the time of her
enlistment that all of her loans qualified under the LRP.  She states, in
effect, that if the loans do not qualify then the recruiter and personnel
at the induction center misled her.

3.  The applicant provides copies two DD Forms 2475 (DOD Educational Loan
Repayment Program Annual Application) with the related loan processing
documents and a 20 April 2005 Army Human Resources Command notification
that her loans do not qualify under the LRP.

CONSIDERATION OF EVIDENCE:

1.  The records show that the applicant enlisted in the Army Reserve (USAR)
under the Delayed Entry Program (DEP) on 17 March 2003 and entered active
duty on 27 May 2004.

2.  Her records indicate she enlisted with the following incentives: a
guaranteed military occupational specialty, a cash enlistment bonus,
advanced grade enlistment, and participation in the Student Loan Repayment
Program (LRP) up to $65,000.00.  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 of the Higher Education Act of
1965 or any loan under Part E of such act after 1 October 1975 and before
she enlisted into the Regular Army.

3.  None of the applicant's enlistment documents, including her DD Form
1966 (Record of Military Processing - Armed Forces of the United States)
identified what student loans she had prior to her entry onto active duty.
She completed a DD Form 2366 indicating that she understood that with
participation in the LRP she was not eligible for Montgomery GI Bill
benefits.

4.  On 22 August 2004 the applicant submitted two DA Forms 2475 (DOD
Educational LRP Annual Application) requesting payment on loans with
outstanding balances in the amounts of $9,256.23 and $4,500.82.

5.  On 13 October 2004 the Acting Chief, Education Incentives and
Counseling Branch, Army Human Resources Command notified the applicant that
the loans provided by Citibank, in the amount of $13,757.05, did not
qualify for repayment under the LRP.  The Acting Chief indicated that these
loans were private loans and not made, insured, or guaranteed under Title
IV Part B, D, or E of the Higher Education Act.

6.  The applicant submitted her request for relief on 6 May 2005.

7.  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-III A 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.

8.  The Government will not make any payments to the Soldier or reimburse a
Soldier if she or she pays off a student loan.  The Government will only
pay the lending institution.

9.  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 that these
programs/options are designed to merge valid Army requirements with
personal desires.

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

11.  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 documentation or verification of eligible
loans.

12.  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 her 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 that the applicant enlisted for the LRP
incentive.  She had obtained three student loans prior to her entry on
active duty and they were not in default prior of her entry on active duty.
 The loans from Citibank, with the approximate outstanding balance of
$13,757.05, do not meet the requirements for repayment under the Higher
Education Act and the LRP.  There is no evidence that she had any loans
that do qualify for repayment under the LRP.

2.  The lack of entry on the applicant's DD Form 1966 and the recruiter's
statement lends credence to the applicant's contention she was lead to
believe the loans were payable under the LRP.  The required entry on the DD
Form 1966 would have confirmed to the applicant that the loan was
ineligible.  It appears the guidance counselor may have misled the
applicant.  Any reasonable doubt concerning the circumstances surrounding
the guidance counselor counseling the applicant on the eligibility of her
student loans should be resolved in the applicant's favor.

3.  In the interest of justice and equity, it would be appropriate to
provide the applicant the full LRP benefits outlined in her enlistment
contract.

4.  The applicant’s military records should be corrected to show her 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 her the amount her lending institutions would have been paid under
the LRP.


BOARD VOTE:

_JTM____  __JBG__  __JRM__  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 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 SLRP 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 SLRP 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 at the appropriate rate and time payment to
the applicant of the total amount of her loans to which her is entitled as
a result of this correction with the approximate outstanding balance of
$13,757.05.  The applicant will be required to resubmit the appropriate
updated evidence (promissory notes, etc.) to the Defense Finance and
Accounting Service to determine the amount due.




                                  _         John T. Meixell_______
                                            CHAIRPERSON

                                    INDEX

|CASE ID                 |AR20050009248                           |
|SUFFIX                  |                                        |
|RECON                   |                                        |
|DATE BOARDED            |20051020                                |
|TYPE OF DISCHARGE       |                                        |
|DATE OF DISCHARGE       |                                        |
|DISCHARGE AUTHORITY     |                                        |
|DISCHARGE REASON        |                                        |
|BOARD DECISION          |Grant                                   |
|REVIEW AUTHORITY        |                                        |
|ISSUES         1.       |128 LRP                                 |
|2.                      |                                        |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |



-----------------------
[pic]