RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:        29 November 2005
      DOCKET NUMBER:  AR20050011678


      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. W. W. Osborn, Jr.             |     |Analyst              |


      The following members, a quorum, were present:

|     |Mr. Stanley Kelley                |     |Chairperson          |
|     |Mr. Melvin H. Meyer               |     |Member               |
|     |Ms. LaVerne M. Douglas            |     |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 record be corrected to show that all
three of his student loans are payable under the student loan repayment
program (LRP).

2.  The applicant states he had three loans totaling $24,584.98 and he had
to give up participation in the Montgomery GI Bill (MGIB) to receive the
LRP.  Had he known that $18,563.32 of his student loans did not qualify
under the LRP he would not have chosen that option, because he would have
been better off with the MGIB.

3.  The applicant provides a copy of the automated print-out of his
enlistment documents.

CONSIDERATION OF EVIDENCE:

1.  The applicant enlisted in Army Reserve delayed entry program (DEP) on
28 January 2003.  He was discharged from the DEP and, on 17 June 2003, he
enlisted in the Regular Army for 6 years.  He received enlistment
incentives in the form of a $6,000.00 cash bonus and the LRP.

2.  None of the applicant's enlistment documents, including his DD Form
1966 (Record of Military Processing - Armed Forces of the United States),
identified what student loans he had prior to his entry onto active duty.

3.  On 17 September 2004, the applicant submitted his DA Forms 2475 (DOD
Educational Loan Repayment Program (LRP) Annual Application) for the two
Private Loans he obtained through Citibank USA, N.A.

4.  On 13 October 2004, the Acting Chief, Education Incentives and
Counseling Branch, Human Resources Command (HRC) notified the applicant
that the loans in question did not qualify for repayment under the LRP.
The Acting Chief indicated that, based on the DD Forms 2475 (LRP Annual
Application), some loans were private and not made, insured, or guaranteed
under Title IV Part B, D, or E of the Higher Education Act.

5.  The Chief further indicated that if the applicant believed that he had
been improperly counseled or an error or injustice has occurred, he should
apply to the Army Board for Correction of Military Records (ABCMR).  A DD
Form 149 (Application for Correction of Military Records) was provided.

6.  The applicant submitted his request for relief on 29 June 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-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.  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.

8.  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.

9.  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.

10.  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.

11.  During the processing of this case an advisory opinion was obtained
from the HRC.  The Chief, Education Incentives and Counseling Branch noted
that the
applicant had previously been advised that some of his loans did not
qualify under the LRP and recommended that the requested relief be denied.
She also noted that the outstanding balance on the non-qualifying, private
loans managed by Citibank USA N.A. was $18,563.32 and recommended that, if
the requested relief is approved, the applicant should be paid that amount
directly.

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 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 that the applicant enlisted for the LRP
incentive.  He had obtained student loans prior to his entry on active duty
and it was not in default prior of his entry on active duty.  The loans
managed by Citibank USA, N.A. with an approximate outstanding balance of
$18,563.32 did not meet the requirements for repayment under the Higher
Education Act and the LRP.

2.  The lack of the required entry on the applicant's DD Form 1966 tends to
indicate that the guidance counselor knew some of the loans were not
eligible but continued to enlist the applicant under the LRP anyway.  The
required entry on the DD Form 1966 would have confirmed to the applicant
that his loans were not fully eligible.  It appears the guidance counselor
may have misled the applicant.  Any reasonable doubt concerning the
circumstances of the incident 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 his enlistment
contract.

4.  The applicant’s military records should be corrected to show his
Statement for Enlistment 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:

__LMD__  ___MHM_ __SK____  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 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 payment to the applicant the total amount of
his Citibank USA, N.A. Private Loans, in the amount of $18,563.32, 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
Defense Finance and Accounting Service.




                                  ___    Stanley Kelley_______
                                            CHAIRPERSON



                                    INDEX

|CASE ID                 |AR22200011678                           |
|SUFFIX                  |                                        |
|RECON                   |                                        |
|DATE BOARDED            |20051130                                |
|TYPE OF DISCHARGE       |                                        |
|DATE OF DISCHARGE       |                                        |
|DISCHARGE AUTHORITY     |                                        |
|DISCHARGE REASON        |                                        |
|BOARD DECISION          |GRANT                                   |
|REVIEW AUTHORITY        |                                        |
|ISSUES         1.       |112.12                                  |
|2.                      |                                        |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |


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