IN THE CASE OF:	  

		BOARD DATE:	 

		DOCKET NUMBER:  AR20070011493 


THE BOARD CONSIDERED THE FOLLOWING EVIDENCE:

1.  Application for correction of military records (with supporting documents provided, if any).

2.  Military Personnel Records and advisory opinions (if any).


THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE:

1.  The applicant requests, in effect, reconsideration that the Army repay his student loan under the Student Loan Repayment Program (SLRP).

2.  The applicant states, in effect, that he enlisted in the Army as an infantryman. At the Military Entrance Processing Station (MEPS), he signed a contract that gave him a bonus and the Army's SLRP.  He chose the SLRP because he had an outstanding loan balance.  His paperwork was checked over at the MEPS and he was told his loans qualified for repayment.  After he applied for repayment of his loans, he received a notice that his loans did not qualify and he could apply to this Board for consideration of repayment of his student loan.  The Board denied his request for repayment of his loans.  He feels that he was misled and he has exhausted all the resources he can turn to from the military.  He has not received any compensation of any kind.  He served proudly for over five years in the Army on active duty. 

3.  The applicant's request for reconsideration was submitted to the Board by the applicant's Member of Congress (MOC).  The MOC has requested that the applicant's request be complied with, if possible, and that he be kept advised of the Board's action in the matter.

4.  The applicant provided, through his MOC, a copy of his originally submitted documents, a copy of the Board's decision, and a copy of his DD Form 214 (Certificate of Release or Discharge from Active Duty), in support of his current request.

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 AR2001054590 on 15 May 2001.

2.  The applicant's records show he enlisted under the Delayed Entry Program on 14 December 1999 as a light weapons infantryman.  He enlisted in the Regular Army on 12 January 2000 for a period of 5 years and 18 weeks.  On 12 January 2004, the applicant reenlisted for 2 years and continued to serve on active duty on this reenlistment until he was honorably discharged on 20 October 2005, in the rank and pay grade, Staff Sergeant, E-6, for disability with severance pay.

3.  The DA Form 3286-66 (Statement of Understanding/United States Army Incentive Enlistment Program), the DA Form 3286-67 (Statement of Understanding (Army Policy)), and the DD Form 1966/3, that were completed at the time of the applicant's enlistment all show he enlisted for the SLRP.

4.  A DD Form 2366, Montgomery GI Bill Act of 1984 (MGIB) form, shows the applicant disenrolled from the MGIB and annotated the form, in part, with the following entry: "Loan Repayment up to $65,000.00.  I understand that I am disenrolled from the Montgomery GI Bill."

5.  On 12 November 2000, the applicant made application for repayment of his student loan in accordance with program guidelines.

6.  The applicant provided copies of promissory notes he signed in favor of the Jefferson City Highway Credit Union which show that a student loan line of credit was made available to him.  An initial student loan line of credit limit was made for $3,000.00 on 18 October 1996; $7,000.00 on 21 July 1997; and $12,000.00 on 4 October 1998.  At the time of the applicant's enlistment, the applicant had an outstanding loan balance of $11,980.89.

7.  On 28 December 2000, the applicant was notified that it was determined that his loan did not qualify for repayment under the SLRP.  The notice continued that, as indicated on the promissory notes, his loans were a student line of credit which was not made, insured, or guaranteed under Title IV, Part B, D, or E of the Higher Education Act of 1965.

8.  Army Regulation 601-210 (Regular Army and Army Reserve Enlistment Program) prescribes eligibility criteria governing the enlistment of persons, with or without prior service (PS), into the Regular Army (RA) and the USAR.  Chapter 6, section II contains guidance on the Guidance Counselor Processing Phase.  The regulation states, in pertinent part, that Guidance Counselors will use the supporting automated systems and updated regulatory material applicable to MOS and available options to counsel all applicants on their enlistment options.  It further states that Guidance Counselors will counsel applicants who fail to meet specific qualifications for options for which they applied and advise them of other available options.

9.  The SLRP is a Department of the Army enlistment option authorized by Title 10 of United States Code, Section 2171 (10 USC 2171), which provides the legal authority for the education loan repayment program for enlisted members on active duty in specified military specialties.

10.  Title 10 USC 2171 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 Loan.  It further specifies that payment of such loans shall be made on the basis of each complete year of service performed as an enlisted member in a military specialty specified by the Army.  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.

11.  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 clear the applicant’s student loan did not meet the criteria established by law and regulation to qualify for repayment by the Army under the SLRP.  The loan 



was 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 Statement of Enlistment of the applicant’s enlistment contract established a contractual agreement between the applicant and the Army.  In addition, the governing regulation requires Army Guidance Counselors to 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.

3.  In view of the facts of this case, it appears the applicant entered into an erroneous contract with the Army, based on the failure of recruiting personnel to follow established regulatory guidelines in connection with his enlistment processing, through no fault of his own.  Given the failure on the part of Government officials to follow their own regulations at the time the applicant was being processed at his enlistment, it is appropriate to correct the resultant injustice – the denial of payment of his student loans under the SLRP.

4.  The applicant's Statement of Enlistment should therefore be corrected to add the statement “If a student loan is accepted by the official processing you for enlistment as payable under the SLRP and the government fails to verify that the accepted student loan actually is eligible for repayment under the Higher Education Act of 1965 and such failure results in nonpayment of the loan by the SLRP 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 amendment of the applicant's enlistment contract allows the Board to invoke the provisions of law and pay the applicant the $11,980.89 due for his unpaid student loan.

BOARD VOTE:

____x___  ____x___  ____x___  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 amendment of the ABCMR’s decision in Docket Number AR2001054590 dated 15 May 2001.  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 of Enlistment to include the statement, "If a student loan is accepted by the official processing you for enlistment as payable under the SLRP and the government fails to verify that the accepted student loan actually is eligible for repayment under the Higher Education Act of 1965 and such failure results in nonpayment of the loan by the SLRP 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, as a result of the foregoing correction the Defense Finance and Accounting Service (DFAS) shall remit payment to the applicant the total amount of his Jefferson City Highway Credit Union Student Loan Line of Credit, in the amount of $11,980.89, to which he is entitled as a result of this correction.  If required, the applicant will submit the appropriate evidence (promissory notes, etc.) to the Defense Finance and Accounting Service.



      __________x____________
               CHAIRPERSON
      
I certify that herein is recorded the true and complete record of the proceedings of the Army Board for Correction of Military Records in this case.

ABCMR Record of Proceedings (cont)                                         AR20070011493



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ABCMR Record of Proceedings (cont)                                         AR20070011493



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