RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:        20 DECEMBER 2005
      DOCKET NUMBER:  AR20050013727


      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. Rene R. Parker                |     |Analyst              |


      The following members, a quorum, were present:

|     |Mr. James Hise                    |     |Chairperson          |
|     |Mr. Ronald Blakely                |     |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 that all his student loans prior to joining the
military be paid under the terms of the Loan Repayment Program (LRP)

2.  The applicant states, in effect, that he was informed by his recruiter
and the counselor at the Military Entrance Processing Station (MEPS) that
all his Army student loans would be paid up to $65,000 under the LRP.  If
he accepted this incentive, he would be required to decline the Montgomery
GI Bill.  He states that he was never informed that only certain loans
qualified for repayment under this program.  The applicant maintains that
once he arrived at the Reception Battalion, it was suggested that the Army
may not pay all of his loans but, he should submit his application anyway.

3.  The applicant provides two supporting statements, two copies of DD Form
2475 (DOD LRP Annual Application), 6 pages of loan/promissory information,
 DD Form 2366 (Montgomery GI Bill (MGIB) Act of 1984) and a letter from the
Education and Incentives Branch.

CONSIDERATION OF EVIDENCE:

1.  The applicant’s military records show that on 4 November 2003, he
enlisted in the Regular Army for 4 years.  A Statement for Enlistment,
prepared during his enlistment processing, confirms that the applicant
enlisted in program 9C, under the LRP incentive option.

2.  The LRP provisions in the Statement of Enlistment required, in
pertinent part, that the applicant acknowledge and understood that only
certain loans qualify for the LRP.  Loans which qualify for his program
includes those which are made, insured or guaranteed under Part B (Federal
Family Education Loan Program), Part D (William D. Ford Direct Loan
Program), or Part E (Federal Perkins Loans) of the Higher Education Act of
1965, after 1 October 1975, and before entering Active Duty.

3.  The Statement of Enlistment listed the Auxiliary Loan Assistance for
Students, Federally Insured Student Loans, Guaranteed Student Loans or
Stafford Loans, National Direct Student Loans or Perkins Loans,
Supplemental Loans for Students, Consolidated loans (in Soldiers name),
Parent Loans for Undergraduate Students (PLUS) loans) Incurred for the use
of individual contracting for LRP.

4.  As an incentive, the applicant was also eligible to receive an
$8,000.00 cash bonus.  He understood that the LRP was contingent on his
disenrollment from the GI Bill.  Disenrollment must be accomplished at the
time he entered active duty.  If he failed to complete the disenrollment
portion of the DD Form 2366, he would not be eligible for the LRP and would
be automatically enrolled in the GI Bill.  The applicant signed his
statement of enlistment verifying that he understood “all promises and
guarantees whatsoever concerning my enlistment.”

5.  On 4 November 2003, the applicant signed DD Form 2366 disenrolling from
the MGIB.

6.  On 20 July 2004, the applicant’s DD Form 2475 requesting repayment of
his loan was certified by the correspondence consultant.  One of the two
forms indicates that the outstanding balance was $20,731.28 and the other
outstanding balance was listed as $24,846.99.  The 6 pages of
loan/promissory information were from Stafford Loans and Premier
Alternative Loan.

7.  On 24 August 2004, the Acting Chief, for the Education Incentives and
Counseling Branch, determined that the applicant’s loans totaling
$45,578.27 did not qualify for repayment under the LRP.  The Acting Chief
justified her decision by stating the applicant’s loans were Alternative
Education Loans which were not made, insured or guaranteed under Title IV
Part B, D, or E of the Higher Education Act.

8.  The applicant provides a supporting statement from his wife who said
that she spoke with the recruiter concerning payment of her husband’s
student loan.  She maintains that the recruiting sergeant assured her that
the Army would pay up to $65,000.00 of his loan.  She said the applicant
was not informed that the Army would only pay specific loans.  She
concluded that the applicant carried all his student loan information to
the MEPS station as instructed.

9.  The supporting statement provided by the applicant’s supervisor attest
to his outstanding job performance.  The author admitted that the applicant
never received any type of disciplinary action while assigned to his
section.  He further stated that the applicant is currently eligible for
retention in the Army and would be highly recommended for continued
service.

10.  In the processing of this case, the Board obtained clarification from
the Human Resources Command Education Incentives and Counseling Branch on
their denial of the applicant’s request.  The branch restated the
information contained in their letter to the applicant dated 24 August
2004.  The Alternative Education Loans did not qualify for repayment under
the LRP and that there were no exceptions to the law to allow payment for
non-qualifying loans.  The branch indicated that the applicant did have
loans of $13, 967.00, other than the alternative loans, that qualified for
repayment under the LRP, and that the appropriate payments would be
authorized toward his qualifying loans.

11.  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.

12.  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.

13.  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.

14.  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 apparent the applicant’s student loans did not meet the criteria
established by law and regulation to qualify for repayment by the Army
under the SLRP.  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 applicant’s enlistment contract established a contractual agreement
between the applicant and the Army.  The fact that the applicant
disenrolled from the GI Bill further supports the applicant's contention
that he believed his student loans would be repaid under the agreement
included in his enlistment contract.

3.  In addition, governing regulations require that Army Guidance
Counselors 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.
Finally, counselors must 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 loan.

4.  In view of the facts of this case, it appears that 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 its 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 for Enlistment United States Army Enlistment Program 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 the Alternative
Education Loans.

BOARD VOTE:

___JH___  __RB ___  __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 all Department of the Army records of the individual concerned be
corrected by amending the applicant's Statement for Enlistment United
States Army Enlistment Program 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.  Further, the Defense Finance and Accounting Service (DFAS) shall remit
payment in the amount of $45,578.27 to the applicant 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.






                                  _______James Hise________
                                            CHAIRPERSON



                                    INDEX

|CASE ID                 |AR20050013727                           |
|SUFFIX                  |                                        |
|RECON                   |YYYYMMDD                                |
|DATE BOARDED            |20051220                                |
|TYPE OF DISCHARGE       |(HD, GD, UOTHC, UD, BCD, DD, UNCHAR)    |
|DATE OF DISCHARGE       |YYYYMMDD                                |
|DISCHARGE AUTHORITY     |AR . . . . .                            |
|DISCHARGE REASON        |                                        |
|BOARD DECISION          |GRANT                                   |
|REVIEW AUTHORITY        |                                        |
|ISSUES         1.       |112.00                                  |
|2.                      |                                        |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |


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