RECORD OF PROCEEDINGS


	IN THE CASE OF:	  


	BOARD DATE:	  26 June 2007
	DOCKET NUMBER:  AR20070000387 


	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.


Ms. Catherine C. Mitrano

Director

Mr. John J. Wendland, Jr.

Analyst


The following members, a quorum, were present:


Mr. James E. Anderholm

Chairperson

Mr. Jerome L. Pionk

Member

Ms. Jeanette B. McPherson

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 the interest that has accrued on his Signature Student Loan.

2.  The applicant states, in effect, that the amount the Army Board for Correction of Military Records approved for repayment of his student loans did not include interest.

3.  The applicant provides a Sallie Mae, Inc., Wilkes-Barre, Pennsylvania, letter, dated 19 December 2006, subject:  Education Loan Account #913367####.

CONSIDERATION OF EVIDENCE:

1.  Incorporated herein by reference are military records which were summarized in the previous consideration of the applicant's case by the Army Board for Correction of Military Records (ABCMR) in Docket Number AR20050016138, on 2 May 2006.

2.  The applicant’s military service records show that he enlisted in the U.S. Army Reserve on 28 January 2002 and entered active duty in the Regular Army for a period of 3 years on 14 February 2002.  Upon completion of basic combat training and advanced individual training, the applicant was awarded military occupational specialty (MOS) 21B (Combat Engineer).  The applicant served in support of Operation Iraqi Freedom from 15 February 2004 to 21 February 2005. He was honorably released from active duty (REFRAD) on 31 May 2005 after completing a total of 3 years, 3 months, and 17 days active service.

3.  On 25 October 2005, the applicant submitted an application to the ABCMR requesting repayment of his student loans claiming that during his enlistment processing, Army officials advised him that his student loans qualified for repayment under the Army Loan Repayment Program (LRP).  The applicant did not provide evidence of his student loan amounts or balances in his application.

4.  In connection with the processing of the case, an advisory opinion was obtained from the Chief, Education Incentives Branch, U.S. Army Human Resources Command (USA HRC), Alexandria, Virginia.  The advisory official recommended disapproval of the applicant's request and pointed out that under the terms of his enlistment contract completed during his enlistment processing, the applicant acknowledged that he understood the Government would only repay a designated portion of loans insured or guaranteed under Part B of the Higher Education Act of 1965 (Guaranteed Student Loan) or any loan under Part E of such (National Direct Student Loan) after 1 October 1975.  In addition, based on information received from the Sallie Mae Corporation, the advisory official determined that the applicant's private loans did not qualify for repayment under the LRP terms of his contract.  The advisory official also confirmed there are no exceptions to the law.

5.  The advisory official indicated that the applicant did have loans that qualified for repayment under the LRP in the amount of $2,625.00 and that payment had been authorized toward the qualifying loans.  However, the official concluded that if the Board decided to grant compensation, the total outstanding balance of the
non-qualifying loans of $45,788.50 should be paid directly to the applicant.  

6.  On 17 January 2006, the applicant was provided a copy of the USA HRC advisory opinion in order to have the opportunity to respond to it contents; however, he failed to provide a response.

7.  On 2 May 2006, the ABCMR found, in pertinent part, that at the time of the applicant’s enlistment, responsible recruiting officials failed to make reference to any loans ineligible for payment under the LRP.  As a result, the ABCMR decided to grant the applicant relief and directed correction of his records by amending the applicant's Statement of Enlistment to allow the Board to invoke the provisions of Title 10, U.S. Code, section 1552.  Accordingly, the Defense Finance and Accounting Service (DFAS) was notified to remit payment in the amount of the outstanding balance of $45,788.50 to the applicant as a result of the correction.

8.  The applicant’s military service records contain a DA Form 3286-66, Annex D, (Statement of Understanding, U.S. Army Incentive Enlistment Program), dated 14 February 2002, completed by the applicant at the time of his enlistment processing.  Item 4b of this document states, “[e]nlistment for the LRP ensures me, provided I meet and maintain the prescribed prerequisites, that the portion or amount of loan that may be repaid is 33 1/3 percent or $1,500, whichever is greater, of the unpaid principal balance (emphasis added) for each year of service completed.”

9.  The applicant’s military service records contain a USAREC Form 1150-R-E (Statement of Understanding – Army Policy, USAREC Addendum to DD Form 1966 Series), dated 28 January 20002, completed by the applicant at the time of his enlistment processing.  Incentive Information, Item 12, provides, “I understand that under the Army’s Student Loan Repayment Program, 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 the interest payments on my student loan during my first year of enlistment.  In addition, 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.”  The applicant placed his initials in the block next to this item and also placed his signature on the form.

10.  In support of his application, the applicant provides a Sallie Mae, Inc., letter, dated 19 December 2006, subject:  Education Loan Account #913367####.  This document shows that the Sallie Mae Corporation acknowledged it received the applicant’s payment in the amount of $45,781.21 on 15 December 2006 and that his Signature Student Loan had a remaining loan balance of $10,426.78.  In addition, this document indicates the applicant was granted a 60-day interest-free administrative forbearance on his account in early November 2006, which was subsequently extended until 1 March 2007.  Further review of the document shows that, prior to posting of the $45,781.21 payment on 15 December 2006, interest and late fees had accrued on both his Career Training Loan and Signature Student Loan.

11.  The LRP is a Department of the Army enlistment option authorized by 
Title 10 of the United States Code, section 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 Loans.

12.  Title 10 U.S. Code, section 2171, also provides that if a portion of a loan is repaid under this section for any year, interest on the remainder of such loan shall accrue and be paid in the same manner as is otherwise required.

13.  Title 10 U.S. Code, section 1552, provides, in pertinent part, that the Secretary concerned may pay, from applicable current appropriations, a claim for the loss of pay, allowances, compensation, emoluments, or other pecuniary benefits, or for 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, or on account of his or another's service as a civilian employee.


DISCUSSION AND CONCLUSIONS:

1.  The evidence of record shows that the original principal balance of the loans under review totaled $37,433.00.  The evidence of record also shows that the applicant’s loans did not qualify for repayment under Title IV, Part B or E of the Higher Education Act of 1965, or William D. Ford Loans.  

2.  Notwithstanding this fact, the evidence of record shows that the applicant’s records were corrected by the ABCMR and the Board invoked the provisions of Title 10, U.S. Code, section 1552, in order to allow the DFAS to remit payment to the applicant for the (then) total outstanding balance of his non-qualifying loans in the amount of $45,788.50.  In addition, the applicant was provided notice of the advisory official’s recommendation in his case, which included the amount of the total outstanding balance at the time.  However, the evidence of record shows that the applicant failed to provide his concurrence or respond otherwise to the information contained in the advisory opinion rendered in his case.

3.  The evidence of record shows that the Army does not assume an individual’s loan under the LRP (i.e., the individual remains responsible for payment of the loan).  The evidence of record also shows that repayment of a portion of the qualifying loan will be made after each successful year of active duty performed by the individual.  However, requests for deferment or forbearance of a loan are not within the purview of the U.S. Army and are the sole responsibility of the borrower; in this case, the applicant.

4.  Based on the available evidence, it appears the applicant failed in his personal responsibility to take action to request deferment or forbearance of his loans, as indicated by the current loan balance of $10,426.78.  In addition, the applicant has submitted neither probative evidence nor a convincing argument in support of his claim for the payment of the interest on his non-qualifying student loan.  Therefore, in view of the foregoing, there is no basis for granting the applicant's request.

5.  In order to justify correction of a military record the applicant must show to the satisfaction of the Board, or it must otherwise satisfactorily appear, that the record is in error or unjust.  The applicant has failed to submit evidence that would satisfy that requirement.


BOARD VOTE:

________  ________  ________  GRANT FULL RELIEF 

________  ________  ________  GRANT PARTIAL RELIEF 

________  ________  ________  GRANT FORMAL HEARING

___JEA__  ___JLP__  ___JBM _  DENY APPLICATION

BOARD DETERMINATION/RECOMMENDATION:

The evidence presented does not demonstrate the existence of a probable error or injustice.  Therefore, the Board determined that the overall merits of this case are insufficient as a basis to amend the decision of the ABCMR set forth in Docket Number AR R20050016138, dated 2 May 2006.




___James E. Anderholm____
          CHAIRPERSON




INDEX

CASE ID
AR20070000387
SUFFIX

RECON
YYYYMMDD
DATE BOARDED
2007/06/26
TYPE OF DISCHARGE
HD
DATE OF DISCHARGE
20050531
DISCHARGE AUTHORITY
AR 635-200, Chapter 4
DISCHARGE REASON
Completion of Required Active Service
BOARD DECISION
DENY
REVIEW AUTHORITY
Ms. Mitrano
ISSUES         1.
103.0100.0000
2.

3.

4.

5.

6.