IN THE CASE OF:	

		BOARD DATE:	  9 March 2010

		DOCKET NUMBER:  AR20090007599 


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 an exception to policy to authorize payment of the outstanding balance of his student loans which were not originally paid off by the military under the Student Loan Repayment Program (SLRP).

2.  The applicant states, in effect, that his enlistment contract contained an addendum entitling him to the SLRP as part of his initial enlistment in the 1980's.  He states that he enlisted in the U.S. Army Reserve (USAR) on 11 June 1981 and that his student documents were submitted to his USAR unit for payment during the period 1982 to 1987.  He states that during this time his unit administrator confirmed that the actions had been completed.

3.  The applicant states he accepted an assignment in the Active Guard Reserve (AGR) Program in May 1988 and has remained on active duty in that program since that time.  He states he was under the impression that his student loans had been paid, but in August 2008 he received notice from the Department of Education that he had unpaid student loans.  He states he contacted the Department of Education and found out that the loans in question were the same loans he submitted for payment over 20 years ago.

4.  The applicant states he contacted Fort McCoy, Wisconsin, which accepted his documents and initiated payment of the loans.  However, he notes that "under current directives the military can only pay $4,236.50, leaving an approximate balance of $6,600.00."

5.  The applicant provides a copy of his 1981 enlistment contract, a copy of his SLRP addendum to his enlistment contract, three promissory notes, documents showing payment of $4,236.50 towards his student loans, and copies of the orders which ordered him to active duty under the AGR Program in May 1988.

CONSIDERATION OF EVIDENCE:

1.  Records available to the Board indicate the applicant enlisted in the USAR on 11 June 1981 for a period of 6 years.  He entered active duty under the AGR Program in May 1988 and continues to serve in that program.  On 1 October 2007 the applicant executed an indefinite reenlistment contract in the USAR.

2.  As part of his enlistment contract, the applicant executed an addendum to the contract authorizing the SLRP as an enlistment incentive.

3.  Army Regulation 137-7 (Incentive Programs) states:

	a.  The SLRP incentive provides for the repayment by the government of a designated portion of any outstanding loans secured after 1 October 1975.  It notes that any loan made, insured, or guaranteed under part B of the Higher Education Act of 1965 or any loan made under part E of this act after 1 October 1975 were eligible for repayment.

	b.  The loan amount to be repaid is 15 percent of the original balance of the loan plus accrued interest not paid by the Department of Education or $500.00 plus accrued interest not paid by the Department of Education, whichever is greater.  This payment will be for each year of satisfactory service in the Selected Reserve.  In no case will payment exceed the amount required to liquidate the loan.

	c.  The maximum amount of loans against which the 15 percent is computed will not exceed $10,000.00 (in March 1988 this amount increased to $20,000.00 for Soldiers who contracted for a critical specialty as established by Department of the Army).  This equates to a maximum annual repayment of $1500.00 plus interest.  If the amount set for repayment is less than $500.00, then $500.00 becomes the calculated amount for repayment that year.

	d.  Entitlement to the SLRP will stop for a variety of reasons including if the Soldier completes the contracted Selected Reserve term of service or is ordered to active duty in an AGR status under Title 10, U.S. Code, section 672a, if this is the Soldier's initial entry on active duty and he is enrolled in the active duty entitlement portion of the new GI Bill on or after 1 July 1985.

4.  Included with the documents provided to the Board by the applicant were three promissory notes totaling $2,924.00.

5.  On 16 April 2009, the USAR Command authorized payment of the applicant's student loans in the amount of $4,236.00 ($2,924.00 of loan principal and $1,312.50 in interest) according to payment documents provided by the applicant.

6.  In the processing of this case an advisory opinion was obtained from the U.S. Army Pay Center at Fort McCoy, Wisconsin.  The opinion summarized the regulatory requirements for the SLRP and how the disbursement of funds was calculated.  The opinion confirmed that no further payments were authorized since 100 percent of the applicant's three loans had been paid.

7.  The applicant was provided a copy of the advisory opinion and responded that while he could not disagree with the majority of what was written, the opinion does not mention that the current system in use that tracks student loan repayments only goes back to 1996 and failed to note that between 1983 and 1988 the military actually paid $412.00 to the Department of Education on one of the student loan amounts.  He also reemphasized that "under current directives the military can only pay $4,236.50 leaving an approximate balance of $6,600.00" and again requests an exception to policy that will authorize the payment of outstanding student loan amounts.

DISCUSSION AND CONCLUSIONS:

1.  The applicant states he was notified in 2009 that he had an outstanding student loan and that reimbursement by the government amounting to $4,236.50 leaves a balance of approximately $6,600.00 in his loan balance.

2.  However, the applicant provided evidence of only $2,924.00 in student loans via the three promissory notes included with his application, all of which were paid by the military in 2009 in addition to $1,312.50 of interest.  The applicant's argument that he has a remaining balance of approximately $6,600.00 in outstanding student loans is not supported by any evidence of record or evidence provided by the applicant.

3.  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 failed to submit evidence that would satisfy the aforementioned requirement.

4.  In view of the foregoing, there is no basis for granting the applicant's request.

BOARD VOTE:

________  ________  ________  GRANT FULL RELIEF 

________  ________  ________  GRANT PARTIAL RELIEF 

________  ________  ________  GRANT FORMAL HEARING

____X___  ____X___  ____X___  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 for correction of the records of the individual concerned.



      ____________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)                                         AR20090007599



3


ARMY BOARD FOR CORRECTION OF MILITARY RECORDS

 RECORD OF PROCEEDINGS


1

ABCMR Record of Proceedings (cont)                                         AR20090007599



2


ARMY BOARD FOR CORRECTION OF MILITARY RECORDS

 RECORD OF PROCEEDINGS


1