RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:           15 November 2005
      DOCKET NUMBER:  AR20050011683


      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. Lisa O. Guion                 |     |Analyst              |


      The following members, a quorum, were present:

|     |Mr. Stanley Kelley                |     |Chairperson          |
|     |Mr. John T. Meixell               |     |Member               |
|     |Mr. Robert L. Duecaster           |     |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, payment of college loans under the
terms of the Loan Repayment Program (LRP).

2.  The applicant states, in effect, that his recruiters and counselors at
the Military Entrance Processing Station (MEPS) led him to believe his
student loans qualified for the LRP.  He states that although Citibank
listed his loans as private, the loans were paid directly to Clemons
University.  He finally states that his recruiter told him that he did all
the necessary research to ensure his loans qualified under the LRP program.

3.  The applicant provides the following documents in support of his
request: Army Human Resources Command (AHRC) Acting Chief, Education
Incentives and Counseling Branch Letter; 4 DOD Educational LRP Annual
Applications
(DD Forms 2475); American Continuing Education System Letter; Self-Authored
Letter; Education Services Letter; 4 CitiAssist Online Applications;
Citibank Loan Balance Webpage of 11 July 2005; and Montgomery GI Bill Act
of 1984
(DD Form 2366).

CONSIDERATION OF EVIDENCE:

1.  The applicant’s military records show that on 27 August 2004, he
enlisted in the Regular Army (RA) for 5 years and 17 weeks.  A Statement
for Enlistment prepared during his enlistment processing confirms the
options and incentives he contracted for during his enlistment processing.
The LRP, Option 9C, is one of the incentives authorized.  The applicable
LRP terms are listed in paragraph 2 of this form.

2.  The LRP provisions in the Statement of Enlistment state, in pertinent
part, that the applicant understood he must disenroll from the GI Bill at
the time he entered active duty and if he failed to do this he would not be
eligible for the LRP.  It also indicated that the applicant understood that
the Government will repay a designated portion of any loan he incurred that
was made, insured, or guaranteed under Part B of the Higher Education Act
(Guaranteed Student Loan) or any loan under Part E of such act (National
Direct Student Loan) after
1 October 1975 and before he enlisted in the Army.

3.  The Statement of Enlistment further indicated that the applicant’s
enlistment for the LRP ensured him, provided he met and maintained the
prescribed prerequisites, that the portion or amount of his student loans
that could be repaid was 33 1/3 percent or $1,500, whichever was greater of
the unpaid principal balance for each year of service completed, up to an
amount of $65,000.00.  The applicant and service representative signed this
document on the date he entered active duty, 27 August 2004.  There is no
indication that any question was raised in regard to the eligibility of his
loans for repayment at the time this document was completed during the
enlistment process.

4.  On 27 August 2004, the recruiting guidance counselor completed Section
V (Recertification) and Section VI (Remarks) of the Record of Military
Processing-Armed Forces of the United States (DD Forms 1966/3 and 1966/4).
These documents contained an entry confirming the applicant’s participation
in the LRP, but there were no entries regarding the
eligibility/ineligibility of any of his student loans.

5.  On 18 May 2005, the Acting Chief, Education Incentives and Counseling
Branch, Human Resources Command (HRC) notified the applicant that that his
Citibank loans disbursed on 4 September 2001, 9 September 2002, 22 January
2003, and 10 September 2003, totaling $65,234.09 (maximum $65,000.00) did
not qualify for repayment under the LRP.  The applicant was advised to
apply to this Board if he believed he was not properly counseled or that an
error or injustice had occurred.

6.  The applicant provides a letter from an Education Services Specialist
at the Fort Richardson, Alaska, Education Center, who supports his request.
 This education official states that the applicant entered the Army with
the understanding that the student loans in question would be repaid under
the terms of the LRP.  She claims the applicant’s recruiter assured him the
loans qualified for repayment under the LRP, and she believes the applicant
has a compelling case.  She indicates that she is hopeful for a fair
resolution of this matter.

7.  Army Regulation 601-210 (Regular Army and Army Reserve Enlistment
Program) prescribes eligibility criteria governing the enlistment of
persons, with or without prior service (PS), into the Regular Army (RA) and
the USAR.  Chapter 6, section II, contains guidance on the Guidance
Counselor Processing Phase.  It states, in pertinent part, that Guidance
Counselors will use the supporting automated systems and updated regulatory
material applicable to MOS and available options to counsel all applicants
on their enlistment options.  It further states that Guidance Counselors
will counsel applicants who fail to meet specific qualifications for
options for which they applied and advise them of other available options.

8.  Table 9-4 of the enlistment regulation, in effect at the time of the
applicant’s enlistment, contained guidance on enlistment option program 9C
(Bonus/Army College Fund/Loan Repayment Program).  It contained specific
guidance pertaining to the LRP and indicated that the government would
repay a designated portion 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 Regular Army.

9.  Table 9-4 of the enlistment regulation further stipulated that Guidance
Counselors were required to confirm they accomplished all the processing
procedures by making the appropriate entries in the DD Form 1966.  This
included a statement regarding the applicant’s eligibility for the LRP,
which included any factors that could disqualify him from receiving the LRP
benefit, and ensuring the applicant’s acknowledgement of this fact was also
recorded in the remarks section of the DD Form 1966.

10.  The LRP is a Department of the Army enlistment option authorized by
Title 10 of the United States Code, section 2171 (10 USC 2171), which
provides the legal authority for the education loan repayment program for
enlisted members on active duty in specified military specialties.  The law
states, in pertinent part, that 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.  It further specifies that
payment of such loans shall be made on the basis of each complete year of
service performed as an enlisted member in a military specialty specified
by the Army.  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.  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.  It is clear the applicant’s student loan did not meet the criteria
established by law and regulation to qualify for repayment by the Army
under the LRP.  The loans were not made, insured, or guaranteed under Title
IV, Part B, D, or E of the Higher Education Act of 1965, as is required.
However, this is not the overriding factor in this case given the equity
considerations and the resultant injustice.

2.  The Statement of Enlistment of the applicant’s enlistment contract
established a contractual agreement between the applicant and the Army, and
the record clearly shows the responsible recruiting officials failed to
make reference to any loans ineligible for payment under the LRP, as
evidenced by the absence of an entry in the remarks section of the DD Form
1966.  In addition, the governing regulation requires Army Guidance
Counselors to verify and counsel applicants on their eligibility for the
options they agreed to prior to their departing for active duty.  Further,
these counselors are obligated to advise applicants on any options they
agreed to, but are not eligible for, and on any available alternatives.

3.  Finally, the regulation in effect at the time of the applicant’s
enlistment required counselors to add entries to the enlistment contract
and/or associated documents confirming this verification of option and
incentive eligibility, and/or counseling on ineligibility, prior to a
member departing for active duty.  In this case, counselors failed to
properly document the ineligibility of the applicant's loans on the DD
Forms 1966/3 and 1966/4, prepared on the day he departed for active duty.

4.  In view of the facts of this case, it appears the applicant entered
into an erroneous contract with the Army, based on the failure of
recruiting personnel to follow established regulatory guidelines in
connection with this enlistment processing, through no fault of his own.
Given the failure on the part of government officials to follow their own
regulations during the applicant's enlistment processing, it is appropriate
to rectify the resultant injustice at this time.

5.  In doing so, the applicant's military records should be corrected to
show his Statement of Enlistment 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 $65, 000.00 due for the Citibank Loans.

BOARD VOTE:

___SK __  __JTM___  ___RLD_  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 all Department of the Army records of the individual concerned be
corrected by amending the applicant's Statement of Enlistment 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."

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 Private Loans, in the amount 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 Defense
Finance and Accounting Service.




            ____Stanley Kelley_______
                    CHAIRPERSON

                                    INDEX

|CASE ID                 |AR20050011683                           |
|SUFFIX                  |                                        |
|RECON                   |NA                                      |
|DATE BOARDED            |2005/11/15                              |
|TYPE OF DISCHARGE       |HD                                      |
|DATE OF DISCHARGE       |NA                                      |
|DISCHARGE AUTHORITY     |NA                                      |
|DISCHARGE REASON        |NA                                      |
|BOARD DECISION          |GRANT                                   |
|REVIEW AUTHORITY        |Mr. Schneider                           |
|ISSUES         1.       |113.0000                                |
|2.                      |                                        |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |


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