RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:        30 August 2007
      DOCKET NUMBER:  AR20070004686


      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             |
|     |Mrs. Nancy L. Amos                |     |Analyst              |


      The following members, a quorum, were present:

|     |Mr. Bernard P. Ingold             |     |Chairperson          |
|     |Mr. Thomas M. Ray                 |     |Member               |
|     |Mr. Gerald J. Purcell             |     |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 records be corrected to
show he is entitled to retain his Selected Reserve Montgomery GI Bill
(MGIB) benefits.

2.  The applicant states, in effect, that the Defense Finance and
Accounting Service (DFAS) sent him a letter stating he owes a debt due to
unsatisfactory completion or participation in the Selected Reserve MGIB.
He was medically discharged.  He was not separated due to unsatisfactory
participation.

3.  The applicant provides an extract from Army Regulation 135-7; a DFAS
Account Statement, dated 3 January 2007; a DA Form 199 (Physical Evaluation
Board (PEB) Proceedings); a Physical Disability Information Report; and
discharge orders.

CONSIDERATION OF EVIDENCE:

1.  After having had about 6 years of prior service in the Regular Army
plus prior service in the Army National Guard, the applicant enlisted in
the USAR on         18 September 2000 for 6 years.  On this date, he signed
a DA Form 5436 (Statement of Understanding – The Selected Reserve
Montgomery GI Bill). Section VII, paragraph 1 of this form stated he
understood that his entitlement to educational assistance would be
terminated if he were declared an unsatisfactory participant.  Paragraph 2c
of this form stated he understood that his entitlement to educational
assistance would be terminated if he were discharged or separated from the
Selected Reserve except for disability that occurred after his eligibility
date and which was not the result of his own misconduct.

2.  On 2 March 2005, an informal PEB found the applicant to be physically
unfit, with a zero percent disability rating, due to chronic bilateral foot
pain due to pes planus (flat feet).  There was evidence to support a
finding that his condition existed prior to service (EPTS) and was not
permanently aggravated beyond natural progression by his service.  The PEB
recommended he be separated without disability benefits.  On 30 March 2005,
the applicant concurred with the findings of the informal PEB and waived a
formal hearing of his case.

3.  On 12 June 2005, the applicant was honorably discharged from the USAR.

4.  On 3 January 2007, DFAS billed the applicant for a debt in the amount
of $653.48 for unsatisfactory completion or participation in the Reserve
MGIB.  Repayment of unearned funds was required.

DISCUSSION AND CONCLUSIONS:

1.  The applicant was not separated from the USAR for unsatisfactory
participation.

2.  Section VII, paragraph 7 of the applicant’s DA Form 5436 stated he
understood that his entitlement to educational assistance would be
terminated if he were discharged or separated from the Selected Reserve
except for disability that occurred after his eligibility date and which
was not the result of his own misconduct.

3.  Even though the applicant was discharged from the USAR on 12 June 2005
for having a physically unfitting condition that was determined to be EPTS
and not service aggravated, that condition did not become a disability that
made him medically unfit for retention until more than 15 years after he
initially entered the service and almost 5 years after he enlisted in the
USAR.  Because he had been paid some MGIB benefits, it is a reasonable
presumption that his condition did not become a disability until after his
MGIB eligibility date.  Therefore, his MGIB entitlement should not have
been terminated.

BOARD VOTE:

__bpi___  __tmr___  __gjp___  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.  showing that he was not discharged from the USAR on 12 June 2005
as a result of unsatisfactory completion or participation in the Reserve
MGIB;

     b.  showing that he was discharged from the USAR on 12 June 2005 as a
result of a disability that occurred after his MGIB eligibility date and
which was not the result of his own misconduct; and

     c.  as a result of the above corrections, cancelling the applicant’s
MGIB debt.




                                  __Bernard P. Ingold___
                                            CHAIRPERSON



                                    INDEX

|CASE ID                 |AR20070004686                           |
|SUFFIX                  |                                        |
|RECON                   |                                        |
|DATE BOARDED            |20070830                                |
|TYPE OF DISCHARGE       |                                        |
|DATE OF DISCHARGE       |                                        |
|DISCHARGE AUTHORITY     |                                        |
|DISCHARGE REASON        |                                        |
|BOARD DECISION          |GRANT                                   |
|REVIEW AUTHORITY        |Ms. Mitrano                             |
|ISSUES         1.       |128.10                                  |
|2.                      |                                        |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |


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