RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:        7 NOVEMBER 2006
      DOCKET NUMBER:  AR20060010718


      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. Patrick McGann                |     |Chairperson          |
|     |Mr. Richard Sayre                 |     |Member               |
|     |Mr. David Haasenritter            |     |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 student loans be paid under the Student
Loan Repayment Program (SLRP).

2.  The applicant states, in effect, at the time of his enlistment on 22
November 2004, it was his understanding that his school loans totaling
$49,585.35 were to be paid under the SLRP.  He states he submitted all his
promissory notes verifying his student loans.  The applicant maintains that
two weeks prior to leaving for Basic Training, his recruiter informed him
that only $20,000.00 of his student loans were to be paid and the other
$29,585.35 in loans did not qualify for repayment under the SLRP.  However,
after expressing his doubt in his enlistment contract and inquiring about
becoming a commissioned officer, the applicant admits that two days later
the recruiter called to inform him that the remaining $29,585.35 would be
paid under the SLRP.  During Basic Training the applicant recalls that he
met with a civilian education advisor at Fort Jackson who returned his
promissory notes from UBank and Wells Fargo stating that the loans were
private loans and ineligible for repayment under the SLRP.  The applicant
concludes that he tried to resolve this issue at both Basic Training and at
Advance Individual Training to no avail.  Therefore, he requests payment of
all his student loans as promised by his recruiter.

3.  The applicant provides his enlistment documents, letter from the Chief,
Education Incentive Branch, and DD Forms 2475 (DOD Education Repayment
Program (LRP) Annual Application).

CONSIDERATION OF EVIDENCE:

1.  The applicant’s military records show he enlisted in the Regular Army
on        23 November 2004 in the pay grade of E-4 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 this 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), and 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 Montgomery GI Bill (MGIB).  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 MGIB.  The applicant
signed his statement of enlistment verifying that he understood "all
promises and guarantees whatsoever concerning my enlistment."

5.  On 23 November 2004, the applicant signed DD Form 2366 disenrolling
from the MGIB.

6.  On 30 November 2005 and 9 December 2005, the Chief, Education
Incentives Branch, replied to the applicant's submission of his DD Forms
2475 (DOD Educational Loan Repayment Program (LRP) Annual Application) from
Wells Fargo Educational Financial Services (WFEFS) and US Bank/Great Lakes.
The Chief, Education Incentives Branch, determined that the applicant’s
loans from WFEFS disbursed on 19 February 2003 and 8 September 1999,
totaling $19,219.40 did not qualify for repayment under the LRP and neither
did his loan from Great Lakes disbursed on 24 July 2001 totaling
$10,365.95.  The Chief, Education Incentives Branch, justified her decision
by stating the applicant’s loans were private and alternative loans which
were not made, insured or guaranteed under Title IV, Part B, D, or E of the
Higher Education Act.

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, 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.

8.  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.

9.  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.

10.  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.  The recruiting personnel
failed to follow established regulatory guidelines in connection with this
enlistment processing. Based on 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:

___PM __  __RS ___  ___DH__  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 $29,585.35 to the applicant as a result of this
correction.  If required, the applicant will submit the appropriate
evidence (promissory notes, etc.) to the DFAS.




                                  _____Patrick McGann_______
                                            CHAIRPERSON



                                    INDEX

|CASE ID                 |AR20060010718                           |
|SUFFIX                  |                                        |
|RECON                   |YYYYMMDD                                |
|DATE BOARDED            |20061107                                |
|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.       |103.00                                  |
|2.                      |                                        |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |


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