RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:        26 June 2007
      DOCKET NUMBER:  AR20070001707


      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. Luis Almodova                 |     |Senior 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, that his student loans be repaid by
the Army's Student Loan Repayment Program (SLRP).

2.  The applicant states, in effect, that prior to enlisting in the Army,
his recruiter, the recruiting station NCOIC (noncommissioned officer in
charge) and his guidance counselor went far out of their way to reassure
him that his student loans were eligible for repayment under the SLRP.
He was informed by his Inprocessing guidance counselor that all the forms
that he included on his USAREC [US Army Recruiting Command] Form 1232,
were, as he and the recruiter had determined, eligible and would be
repaid by the Army.  He states, in effect, after he signed the form, the
counselor physically attached it to his enlistment contract, and
he signed the contract.

3.  In addition to the DD Form 149, Application for Correction of Military
Record, the applicant submitted a two page addendum which details the
events leading to his enlistment in the Army, and the actions he and others
took to give him assurances the loans qualified for repayment under the
SLRP and would be paid by the Army.

4.  In support of his request, the applicant submitted those documents he
listed on his DD Form 149.

CONSIDERATION OF EVIDENCE:

1.  The applicant’s military records show that he enlisted in the Army
Reserve, US Army Delayed Enlistment Program, for 8 years, on 5 May 2005.

2.  On 27 July 2005, the applicant enlisted in the Regular Army for 6
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, 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 27 July 2005.  In addition, the
recruiter saw the applicant's Social Security Account Card and degree
credentials.  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, shows the applicant enlisted for, among other options/incentives,
payment of his student loans under the SLRP.

5.  DD Form 1966/4 has a remark that reads:  "Per SFC T****s, of Plans and
Policies, all loans that are not listed on the non-qualified list of USAREC
MSG 05-151, are covered for re-payment through the Loan Repayment Program."
 No other remarks related to the SLRP are shown in the Remarks Section of
the DD Form 1966/4.

6.  An automated Statement for Enlistment, United States Army Enlistment
Program, U.S. Army Delayed Enlistment Program, was completed on 5 May
2005.  This form shows the applicant enlisted for Programs 9A, US Army
Training Enlistment Program and Program 9C, US Army Incentive Enlistment
Program (US Army High Grad Bonus (Bachelor)), US Army Loan Repayment
Program, and US Army Partnership for Youth Success (Pays) Program.  The
applicant acknowledged that his enlistment in the Regular Army was
scheduled for 27 July 2005.

7.  The applicant completed and signed an automated Montgomery GI Bill
Act of 1984 (MGIB), Basic Enrollment, form to disenroll himself from
participation in the MGIB on 5 May 2005.  A notation is shown in Item 4
(Service Unique Education Assistance Options), which states, "Loan
Repayment Program:  I understand I am disenrolling from the Montgomery GI-
Bill to participate in the Student Loan Repayment Program."

8.  An automated Enlistment/Reenlistment Document Armed Forces of the
United States was completed on 27 July 2005.  This form shows the
applicant enlisted for Programs 9A, US Army Training Enlistment Program
and Program 9C, US Army Incentive Enlistment Program (US Army High Grad
Bonus (Bachelor)), US Army Loan Repayment Program, and US Army
Partnership for Youth Success (Pays) Program.

9.  During the applicant's processing on 27 July 2005, the applicant
completed and signed a USAREC Form 1232, Loan Repayment Inprocessing
Counseling.  On this form, he acknowledged the program requirements,
responsibilities, and benefits.  The applicant responded to Item 4b. which
required him to identify the number of loans the US Army would cover.  He
listed a consolidation loan provided him by Great Lakes, in the amount of
$15,000.00; a supplemental loan provided him by the Sallie Mae Corporation,
in the amount of $4,000.00; and an
auxiliary loan provided him by American Education Services, in the amount
of $15,000.00.  The applicant initialed item 9 of the form which stated he
understood that he must bring copies of all his student loan promissory
notes when he reported to the Military Entrance Processing Station for his
active duty ship date.  This form was authenticated by the DEP-in guidance
counselor and the ship guidance counselor on the same date.

10.  The USAREC Form 1232 also shows the applicant understood that to
participate in the SLRP, he was required to disenroll from the MGIB; that
his disenrollment would be irrevocable; that only certain loans qualified
for the SLRP.  Loans which qualified for the program included those which
were made, insured, or guaranteed under Title IV, Part B (Federal Family
Education Loan Program), Part D (William D. Ford Federal Direct Student
Loan Program), or Part E (Federal Perkins Loans) of the Higher Education
Act of 1965, and before entering active duty; that under the program, the
amount of qualifying loan(s), which would be paid is 33 1/3 percent of the
original unpaid balance or $1,500.00, whichever is greater; that payment
would be made after each completed year of active duty; and that he
understood the SLRP would not pay student loans in excess of $65,000.00.
The applicant and his counselors each signed the USAREC Form 1232.

11.  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
27 July 2005.

12.  There is no indication on the available enlistment documents any
question was raised with regard to the qualification of his loans for
repayment under the SLRP and that he was advised that any of his loans did
not qualify for payment under the SLRP.

13.  AR 601-210, Chapter 6, MEPS Processing Phase, provides policy and
guidance for those functions that are administered at MEPS by MEPCOM
(Military Entrance Processing Command) personnel and guidance counselors
to confirm that they accomplished all procedures in the enlistment process
by making the appropriate entries in the DD Form 1966 series and DA Form
3286-66.  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 from receiving the SLRP benefit, 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.

14.  AR 601-210, paragraph 6-5.g., states the guidance counselor will
counsel applicants who fail to meet specific qualifications for MOS,
options, and assignments, for which they applied; advise them of all other
available options that would still meet the applicant's needs, wants, and
desires as well as the needs of the Army.

15.  AR 601-210, paragraph 6-5.v., states the guidance counselor will
ensure applicant's higher educational loan(s) qualify for loan repayment if
selecting the Loan Repayment Program (SLRP) option.

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

17.  The procedures, outlined in paragraphs 14 and 15 above, are also
contained in USAREC Regulation 601-96 (Guidance Counselor Procedures),
Appendix N, paragraph N-3d(3).

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

19.  On about 1 March 2006, the applicant submitted his DOD Educational
Loan Repayment Program Annual Application, DD Form 2475, seeking payment of
his loans.

20.  On 9 May 2006, the Chief, Education Incentives Branch, Human Resources
Command (HRC), notified the applicant that the loans disbursed by Sallie
Mae Servicing Corporation (SMSC) and American Education Services (AES) on
5 August 1999 and 16 September 2002, totaling $4,013.69 and $15,568.27 did
not qualify for repayment under the SLRP.  He was advised if he believed he
was not properly counseled or that an error or injustice had occurred, he
could apply to this Board for possible relief.
21.  The Loan Repayment Program is a Department of the Army enlistment
option authorized by Public Law 99-145.  This option is designed to
increase Test Score Category I-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 (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.  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 3 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 he pays off a student loan.  The Government will only pay the
lending institution.

22.  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."

DISCUSSION AND CONCLUSIONS:

1.  The evidence shows the applicant was extended loans by Sallie Mae
Servicing Corporation and by American Education Services.

2.  The applicant enlisted in the Regular Army 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 the Army's and
his responsibilities with regard to his enlistment
options/incentives/obligations.

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 Military Entrance Processing Station for my active duty ship
date."

6.  A copy of USAREC message number 05-151 is not available for the Board's
review.

7.  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 the SLRP benefit, and
ensures that an applicant acknowledges this fact in the remarks section of
the appropriate form of the DD Form 1966-series.  A review of the DA Form
1966-series failed to reveal any entries pertinent to this required
counseling.

8.  USAREC Regulation 621-1, paragraphs 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.

9.  The applicant submitted the required DD Form 2475 seeking payment of
loans that had been disbursed by Sallie Mae Servicing Corporation and the
American Education Services.  He was advised by the Education Incentives
Branch his loans did not qualify for repayment.  The Education Incentives
Branch notified the applicant that if he believed he was not properly
counseled or that an error or injustice had occurred, he could apply to
this Board for possible relief.

10.  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.

11.  Broad discretion is available to this Board under Title 10, US Code,
Section 1552, which includes the authority to amend an applicant’s
enlistment documents 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.

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

BOARD VOTE:

___A____  ___JP___  ___JBM__  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 Enlistment/Reenlistment Document – Armed Forces of
the United States to include the statement,  “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, 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 $19,581.96 to
which he is entitled as a result of this correction.




                                  ____James E. Anderholm_____
                                            CHAIRPERSON

                                    INDEX

|CASE ID                 |AR20070001707                           |
|SUFFIX                  |                                        |
|RECON                   |                                        |
|DATE BOARDED            |20070626                                |
|TYPE OF DISCHARGE       |                                        |
|DATE OF DISCHARGE       |                                        |
|DISCHARGE AUTHORITY     |                                        |
|DISCHARGE REASON        |                                        |
|BOARD DECISION          |GRANT                                   |
|REVIEW AUTHORITY        |                                        |
|ISSUES         1.       |112.0000                                |
|2.                      |112.1200                                |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |


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