RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:        31 October 2006
      DOCKET NUMBER:  AR20060011952


      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. Stephanie Thompkins           |     |Analyst              |


      The following members, a quorum, were present:

|     |Mr. James E. Anderholm            |     |Chairperson          |
|     |Mr. Jose A. Martinez              |     |Member               |
|     |Mr. Bernard P. Ingold             |     |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, that the Citibank loans disbursed on
2 October 2001 and 5 March 2001, totaling $8,012.29, be repaid by the
Army's Student Loan Repayment Program (SLRP).

2.  The applicant states, in effect, that when he enlisted he was not
advised that his Citibank loan did not qualify for repayment.  After being
in the active Army for one and a half years, he just now, for the first
time, was advised that $8,012.29 of his student loan did not qualify for
the SLRP.  At every step of the process, he showed all three of his loans
to the recruiter, the Military Entrance Processing Station (MEPS), the
Chief of Educational Incentives, and the finance office.  None of those
people advised him that his Citibank student loan did not qualify.  He
feels that he was poorly counseled concerning the SLRP, rendering this an
injustice.  Had he known this, he would not have enlisted for three years.
He would have attempted to become an officer, a position, perhaps, more
commensurate to his ability (or at least education level).  He really would
have preferred to have had that information up front, so that he would have
taken a different path.

3.  The applicant provides copies of his letter from the Chief, Education
and Incentives Branch, Human Resources Command (HRC), Alexandria, Virginia
and two DD Forms 2475 (DOD Educational Loan Repayment Program Annual
Application), in support of his request.

CONSIDERATION OF EVIDENCE:

1.  The applicant's military records show he enlisted in the Army Reserve,
US Army Delayed Entry/Enlistment Program, for 8 years, on 28 August 2003.

2.  On 6 January 2004, the applicant enlisted in the Regular Army for
three years for, among other options, payment of his student loans under
the SLRP.  The applicant is currently serving on active duty in the rank
and pay grade of specialist E-4.

3.  DD Form 1966/3, Record of Military Processing – Armed Forces of the
United States, on file in the applicant's Official Military Personnel
File (OMPF) shows, in item 30 (Data Verification by Recruiter), that the
applicant's recruiter saw the applicant's birth certificate and verified
the applicant's age and citizenship on 28 August 2003.  In addition, the
recruiter saw the applicant's Social Security Account Card and degree
credential.  There is no indication on this form that the recruiter saw
other documents.

4.  Item 32.a. (Specific Option/Program Enlisted For), of the DD Form
1966/3, on file in the applicant's OMPF, shows the applicant enlisted for
enlistment options 03 and 9C, the US Army Incentive Enlistment Program
(Enlistment Bonus, Army College Fund, SLRP).

5.  DD Form 1966/4 is silent reference any information pertinent to the
SLRP and any review of promissory notes and determination as to the
qualification of the loans for repayment under the SLRP, and any counseling
that may have been given the applicant pertinent to any loans that did not
qualify.

6.  The Statement for Enlistment, United States Army Enlistment Program,
U.S. Army Delayed Enlistment Program, which was completed on 28 August
2003, shows the applicant enlisted for Program 9A (US Army Training
Enlistment Program (UNCM) and Program 9C (US Army Incentive Enlistment
Program (US Army SLRP, US Army Cash Bonus, 3 Yr Enlistment)).  The
applicant acknowledged that his enlistment in the Regular Army was
scheduled for 6 January 2004.

7.  The applicant acknowledged that in connection with his enlistment in
the Regular Army, he would receive $6,000.00 under the US Army Cash Bonus
Program.

8.  The applicant acknowledged that with his enlistment in the Regular Army
for the US Army SLRP, he must disenroll from the GI Bill in order to
qualify for this program and disenrollment must be at the time he enters
active duty.

9.  Item 3.e. of the Statement for Enlistment, United States Army
Enlistment Program, which the applicant signed on 28 August 2003, states in
part, "I understand that under the Army SLRP, the Army will not repay
student loans in excess of $65,000 regardless of the amount of my student
loans.  I further understand that I am required to make all interest
payments of my student loan during my enlistment.  In addition, I
understand that I must bring copies of ALL my student loan promissory notes
when I report to the MEPS for active duty ship date."

10.  The applicant completed and signed a DD Form 2366, Montgomery GI Bill
Act of 1984 (MGIB), to disenroll himself from participation in the MGIB on
28 August 2003 and on 12 January 2004.

11.  On 22 February 2005, the applicant submitted DD Form 2475, DOD
Educational Loan Repayment Program Annual Application, to the US Army HRC,
Education Incentives Branch, seeking payment of the loan that had been
extended by Citibank on 2 October 2001, totaling $5,000.00.  At the time
the loan had an unpaid balance of $4,264.88.

12.  The DD Form 2475 was submitted to the loan holder, Citibank, on 9 June
2005.  On the same day, the completed DD Form 2475 was returned to the
Education Incentives Branch.

13.  On 22 February 2005, the applicant submitted DD Form 2475, DOD
Educational Loan Repayment Program Annual Application, to the US Army HRC,
Education Incentives Branch, seeking payment of the loan that had been
extended by Citibank on 5 March 2001, totaling $4,500.00.  At the time, the
loan had an unpaid principal balance of $3,747.41.

14.  The DD Form 2475 was submitted to the loan holder, Citibank, on 9 June
2005.  On the same day, the completed DD Form 2475 was returned to the
Education Incentives Branch.

15.  On 28 July 2005, the Education Incentives Branch notified the
applicant that the loans disbursed on 2 October 2001 and 5 March 2001,
totaling $9,500.00 that had an outstanding balance of $8,012.29, did not
qualify for repayment under the SLRP.  He was advised that his loans were
private loans, which were not made, insured, or guaranteed under Title IV,
Part B, D, or E of the Higher Education Act.  He was further advised that
if he thought he was not properly counseled or an error or injustice had
occurred, he could apply to this Board for consideration for relief.

16.  On 14 September 2006, a member of the staff of this Board inquired of
the Education Incentives Branch if the applicant had any other loans and,
in effect, if any were qualified for repayment under the Army's SLRP.  On
the same day, a staff member at the Education Incentives Branch responded
that the applicant had one qualifying loan.  A completed DD Form 2475 from
Wells Fargo Educational Financial Services for Stafford Loans totaling
$19,888.38 had been received.  The first year payment totaling $6,629.46
was paid on 24 August 2005. The second year payment totaling $6,629.46 had
been authorized and sent to the Defense Finance and Accounting Service for
check disbursement on 5 September 2006.

17.  Army Regulation (AR) 601-210, Chapter 6, MEPS Processing Phase,
provides policy and guidance for those functions that are administered at
the MEPS by MEPCOM (Military Entrance Processing Command) for personnel
and guidance counselors to confirm that they accomplish all procedures in
the enlistment process by making the appropriate entries in the DD Form
1966 series and DA Form 3286.  Paragraph 6-5.g. states that the guidance
counselor "counsels applicants who failed to meet specific qualifications
for options for which they applied; advises them of other available
options."  This includes a statement regarding the applicant’s
eligibility for the SLRP, which is to include any factors that may
disqualify him or her from receiving SLRP benefits, and ensuring that the
applicant’s acknowledgement of this fact is also recorded in the remarks
section of the appropriate form of the DD Form 1966 series.

18.  The applicable subparagraphs of Table 9-4, line 7, AR 601-210, which
was then in effect, states that guidance counselors will "a.) complete the
required entries on the DD Form 1966; c.) if enlisting for the Loan
Repayment Program, disenroll the applicant or Soldier from the GI Bill; and
d.) verify that the applicant has qualifying loans if enlisting for the
Loan Repayment Program.  Advise applicant if any loan is not eligible and
have the applicant acknowledge same in the remarks section of the DD Form
1966-series (emphasis added)."

19.  United States Army Recruiting Command (USAREC) Regulation 621-1,
paragraph 4-4a., which supplements AR 601-210, states that "Applicants are
no longer authorized to ship without documents or verification of eligible
loans."

20.  The procedures, outlined in paragraphs 18 and 19 above, are also
contained in USAREC Regulation 601-96 (Guidance Counselor Procedures),
Appendix N, paragraph N-3d(3).

21.  Forms included in the DD Form 1966 series were reviewed for any
indication or remarks that any of the applicant's loans were not eligible
for repayment under the SLRP.  None was found.

22.  The SLRP is a Department of the Army enlistment option authorized by
Public Law 99-145.  This option is designed to increase Test Score
Category –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, Parent Loan for Undergraduate
Students, Auxiliary Loan Assistance for Students, and consolidated loans
that fall under Title IV, Part B or E of the Higher Education Act of
1965.  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
repayment after completion of a full year of active duty and for each
full year thereafter, up to three 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.

23.  Title 10, US 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.”

24.  The evidence shows in this case, a DA Form 3286 was not completed.
All enlistment incentives offered and accepted by the applicant were
recorded on the DD Form 1966-Series or on the computer generated DA Form
3286, which the applicant signed on 28 August 2003.

DISCUSSION AND CONCLUSIONS:

1.  The evidence shows that on 1 October 2001 and 5 March 2001 Citibank
loaned the applicant $5,000.00 and $4,500.00, respectively.  His unpaid
balance is $8,012.29.

2.  The applicant enlisted in the Regular Army for three years, on 6
January 2004, for among other options, payment of his student loans under
the SLRP.

3.  The evidence shows the applicant was appropriately guided through the
signing or initialing of the required forms acknowledging both his
responsibilities and the Army's responsibilities with regard to his
enlistment options, incentives and obligations.  However, it appears, the
Army representatives failed to correctly advise him concerning the SLRP.

4.  The applicant completed and signed a DD Form 2366 to disenroll himself
from participation in the MGIB, as required by program rules for the
enlistment option/incentive he chose.

5.  The applicant authenticated USAREC Form 1232 that states, "I understand
that I must bring copies of all my student loan promissory notes when I
report to the MEPS for my active duty ship date."

6.  In his application to this Board, the applicant states that he was not
told by his recruiter that his student loans with Citibank did not qualify
for repayment under the Army's SLRP.  On 14 September 2006, a staff member
of the Board was advised that the applicant had one other loan, a Stafford
Loan, which qualified for repayment and for which an annual payment was
paid on 24 August 2005 and authorization for a second year payment had been
forwarded to DFAS for check disbursement on 5 September 2006.
7.  There is no evidence the applicant was told that any of his loans, and
in particular the loans extended by Citibank, did not qualify for repayment
under the SLRP.

8.  There is no evidence that if any of the loans were identified as not
qualifying under the Army's SLRP that the guidance counselor took any
action to advise the applicant of other available options, as required by
AR 601-210.  The applicant's enlistment documents are not annotated to show
the results of any counseling that may have been given him with regard to
his SLRP enlistment incentive option and his ineligibility for repayment
for any non-qualifying loan.

9.  Review of the evidence shows the loans that were extended by Citibank
to the applicant were private loans.  Under normal circumstances, these
types of loans are not qualifying loans under the SLRP, since they do not
meet the criteria of the program and the law; however, this is not the
overriding factor in this case, given the equity considerations and the
resultant injustice to the applicant.

10.  AR 601-210 requires that the guidance counselor include a statement
regarding an applicant’s eligibility for the SLRP, which is to include any
factors that may disqualify him from receiving SLRP benefits, and ensure
that an applicant acknowledges this fact in the remarks section of the
appropriate form of the DD Form 1966-series.  A review of the DD Form 1966-
series failed to reveal any entries pertinent to this required counseling.

11.  USAREC Regulation 621-1, paragraph 4-4a, and USAREC Regulation 601-
96, Appendix N, paragraph N-3d(3), state that applicants are not
authorized to ship without documents or verification of eligible loans.
It is plainly evident that the applicant was shipped to basic combat
training without this verification.

12.  The applicant submitted the required DD Forms 2475 seeking payment
of the loans that had been extended through the Citibank.  Citibank
completed its portion of the DD Forms 2475 on 9 June 2005.  The forms
were annotated to show the original amounts of the loans were $5,000 and
$4,500.00, respectively, with outstanding balances of $4,264.88 and
$3,747.41, respectively, totaling $8,012.29.  The DD Forms 2475 were, in
turn, submitted to the Education Incentives Branch for payment.  The
Education Incentives Branch, in turn, notified the applicant that his
Citibank loans did not qualify for repayment under the SLRP.

13.  The evidence shows that the applicant entered into an erroneous
contract with the Army, through no fault of his own, based on the failure
of the guidance counselor to strictly follow established regulatory
guidelines and procedures in connection with his recruitment and enlistment
processing. Given the failure by

the guidance counselor to follow clearly established policies and
procedures, the Board concludes that it would be appropriate to rectify the
resultant injustice to the applicant at this time.  The Board finds that it
would be equitable and in the interest of justice to provide the applicant
the SLRP benefits committed to in his enlistment contract at the time of
his enlistment.

14.  Broad discretion is available to this Board under Title 10, US Code,
Section 1552, which includes the authority to amend the applicant’s DA Form
3286-66 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 all student loans accepted actually are
eligible under the Higher Education Act of 1965, and such failure results
in nonpayment of the loan by the SLRP, the Army Board for Correction of
Military Records may pay the loan, at its sole discretion, in accordance
with Title 10, US Code, section 1552.”  This amendment of the DA Form 3286-
66 allows the Board to invoke that provision and pay the applicant or
lending institutions, on behalf of the applicant, the amount that would
have been paid towards satisfaction of outstanding student loan(s), if they
had been properly verified at the time of his enlistment.

15.  In this case, a DA Form 3286 was not completed.  All enlistment
incentives offered and accepted by the applicant were recorded on the DD
Form 1966-series or on the computer generated DA Form 3286, which the
applicant signed on 28 August 2003.  Annotations expressed in the paragraph
above will be made to the DA Form 1966-series and to the Statement for
Enlistment, United States Army Enlistment Program, as appropriate.

16.  In view of the foregoing, the applicant’s records should be corrected
as recommended below.

BOARD VOTE:

____A___  __JAM__  ___BPI__  GRANT FULL RELIEF

________  ________  ________  GRANT PARTIAL RELIEF

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION





BOARD DETERMINATION/RECOMMENDATION:

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:

      a.  amending the DD Form 1966-series and the Statement for Enlistment,
United States Army Enlistment Program, to include the statement,  “If a
student loan is accepted by the officials processing you for enlistment as
payable under the Student Loan Repayment Program, and the government fails
to verify that all student loans accepted actually are eligible under the
Higher Education Act of 1965, and such failure results in nonpayment of the
loan by the Student Loan Repayment Program, 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”; and


      b.  directing that in accordance with Title 10, US Code, section 1552,
the Defense Finance and Accounting Service make payment to the applicant,
for the total amount of loans not covered under the Student Loan Repayment
Program, that were listed in his enlistment records, in the amount of
$8,012.29, to which he is entitled as a result of this correction and,
advise him if he does not serve the required active duty, a debt will be
established.




                                  _____James E. Anderholm_____
                                            CHAIRPERSON



                                    INDEX

|CASE ID                 |AR20060011952                           |
|SUFFIX                  |                                        |
|RECON                   |                                        |
|DATE BOARDED            |20061031                                |
|TYPE OF DISCHARGE       |                                        |
|DATE OF DISCHARGE       |                                        |
|DISCHARGE AUTHORITY     |                                        |
|DISCHARGE REASON        |                                        |
|BOARD DECISION          |GRANT                                   |
|REVIEW AUTHORITY        |                                        |
|ISSUES         1.       |112.04                                  |
|2.                      |128.14                                  |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |


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