RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:        15 November 2005
      DOCKET NUMBER:  AR20050013106


      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. Rosa M. Chandler              |     |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 that his $6,700.00 student loan made through
Rhode Island Student Loan Authority (RISLA) be paid in accordance with his
enlistment option for the Army Student Loan Repayment Program (SLRP).

2.  The applicant states that prior to signing his military enlistment
contract, military personnel advised him that all of his student loans were
qualified for payment under the SLRP.

3.  The applicant provides in support of his request:

      a.  Letter, Department of the Army, United States (US) Army Human
Resources Command (HRC), Education Incentives Branch, Alexandria, Virginia,
dated 8 June 2005.

      b.  Financial Documents provided by RISLA, dated 19 August 2002 and
26 December 2004.

CONSIDERATION OF EVIDENCE:

1.  On 22 March 2004, the applicant enlisted in the US Army Reserve (USAR)
for a period of 8 years under the Delayed Entry Program (DEP).  On 28 April
2004, he was separated from the DEP and enlisted in the Regular Army for 3
years and 21 weeks.  He his currently serving on active duty in pay grade E-
3.

2.  The applicant's computer-generated Statement for Enlistment, US Army
Enlistment Program confirms he enlisted for Program 9A, the US Army
Training Enlistment Program, and training in military occupational
specialty (MOS) 74D (Chemical Operations Specialist).  He also enlisted for
Program 9C, the US Army Incentive Enlistment Program (US Army Loan
Repayment Program and a Cash Bonus).  The applicant authenticated this form
acknowledging he understood the government would pay 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
1965 and before enlistment into the RA.

3.  The available evidence indicates on an unknown date the applicant made
application for payment of his loans under the SLRP.  On 8 June 2005, the
HRC notified him that his loan in the amount of $6,700.00 through RISLA did
not qualify for payment under the provisions of the SLRP.  The loan was not
made, insured, or guaranteed under Title IV, Part B, D, or E of the Higher
Education Act of 1965.
4.  The applicant has other loans in the amount of $13,250.00 that
qualified for payment under the provisions of the SLRP.

5.  Army Regulation 601-210 (Regular Army and Army Reserve Enlistment
Program) prescribes the eligibility criteria governing the enlistment of
persons, with or without prior service in the RA and Army Reserve.  It
contains guidance on enlistment option 9C (Bonus/Army College Fund/Loan
Repayment Program) and contains specific guidance pertaining to the LRP.
It provides that the government will pay 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 1965 and before
enlistment into the RA.

6.  Army Regulation 601-210 provides that Army Guidance Counselors are
required to accomplish specific counseling and administrative actions in
connection with processing members enlisting with the LRP incentive.  These
actions include ensuring members are disenrolled from the GI Bill;
verifying that members have qualifying loans; and advising members of any
loan that is not eligible.

7.  Army Regulation 601-210 also provides that Guidance Counselors are
specifically required to confirm that they accomplished all the processing
procedures by marking the appropriate entries on a Record of Military
Processing–Armed Forces of the United States DD Form 1966 and DA Form 3286-
66.  This includes a statement advising applicants of any loan he or she
has that is not eligible for repayment and ensuring the applicant’s
acknowledgement of this fact is also recorded in the Remarks Section of the

DD Form 1966.

8.  The SLRP is a Department of the Army enlistment option authorized by
Public Law 99-145.  Loans that qualify for payment under the SLRP are
Guaranteed Student Loan/Stafford Loans, National Direct Student
Loan/Perkins Loans, William D. Ford Loans, Supplemental Loans for Students,
Federally Insured
Student Loans, Parent Loans for Undergraduate Students, Auxiliary Loan
Assistance for Students, 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 SLRP participants earn their first loan payment 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 $1,500.00, 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 pay the lending
institution.

9.  Title 10, U.S. Code, section 1552, the law, which governs the operation
of 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 payment 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 service
in the Army, Navy, Air Force, Marine Corps or Coast Guard, as the case may
be".

DISCUSSION AND CONCLUSIONS:

1.  The applicant's RISLA educational loan does not meet the criteria
established by law for payment under the SLRP; however, this is not the
overriding factor in this case given the equity considerations and the
resultant injustice.

2.  The applicant's enlistment contract clearly establishes a contractual
agreement between him and the Army; the contract provides that he will
receive SLRP benefits in connection with his active duty service.

3.  The applicant, based on information that is available, believed all of
his loans were covered under the SLRP.  Subsequently, it has been
determined this information is incorrect.  There is no evidence available
to indicate he was ever clearly told his RISLA educational loan was not
payable under the SLRP.

4.  As noted by the HRC, the applicant's contested loan in the amount of
$6,700.00 is not insured under the Higher Education Act of 1965, because it
does not fall within this Act.  Therefore, there are no Army records that
the Board can correct that would allow payment of the applicant’s non-
qualifying loan under the SLRP.  Notwithstanding the above, the Board
believes that equity requires the Army to provide the applicant the SLRP
benefits outlined in his enlistment contract.

5.  In doing so, the applicant's military records may be corrected to show
his DA Form 1966 was amended to include the sentence "If a student loan is
accepted by the official processing a Soldier 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 a failure results in nonpayment
of the loan or repayment or default of the loan, the ABCMR may pay the
applicant, 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
the applicant $6,700.00 for the non-qualifying loan, which is the amount
his lending institution would have been paid had the loan qualified for
payment.

6.  The record does not indicate whether the applicant has served in
Operation Iraqi Freedom/Operation Enduring Freedom.

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 the applicant's Statement for Enlistment, US Army Enlistment Program
be amended to include the sentence "If a student loan is accepted by the
official processing a Soldier for enlistment as payable under the LRP and
the government fails to verify that the student loan accepted actually is
eligible for payment under the Higher Education Act and such a failure
results in nonpayment of the loan or default of the loan, the ABCMR 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 to the applicant the total amount of his
RISLA College Bound Loan, in the amount of $6,700.00 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                 |AR20050013106                           |
|SUFFIX                  |                                        |
|RECON                   |                                        |
|DATE BOARDED            |20051115                                |
|TYPE OF DISCHARGE       |                                        |
|DATE OF DISCHARGE       |                                        |
|DISCHARGE AUTHORITY     |                                        |
|DISCHARGE REASON        |                                        |
|BOARD DECISION          |(GRANT)                                 |
|REVIEW AUTHORITY        |                                        |
|ISSUES         1.       |128.1400                                |
|2.                      |                                        |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |


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