IN THE CASE OF:	  

		BOARD DATE:	  27 July 2011

		DOCKET NUMBER:  AR20100025331 


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 payment of her son's (a deceased former service member (FSM)) Affiliated Computer Services, Incorporated (ACS, Inc.), student loan under the Loan Repayment Program (LRP).

2.  The applicant states her son's student loan originated as a Federal Plus Loan and was later consolidated by ACS, Inc.  ACS, Inc., is unwilling to discharge the loan.

3.  The applicant provides a:

* self-authored statement
* FSM's death certificate
* U.S. Army Recruiting Command (USAREC) Form 1232 (LRP In-processing Counseling)
* letter from College Loan Corporation
* ACS Loan Consolidation Disclosure Statement and Repayment Schedule
* letter and payment schedule from Sallie Mae
* Federal Plus Loan Application and Master Promissory Note
* Notice of Loan Guarantee and Disclosure Statement for Federal Plus Loan disclosed as of 9 November 2005
* Universal Technical Institute (UTI)-Phoenix Student Loan Repayment General Information
* UTI Enrollment Agreement



CONSIDERATION OF EVIDENCE:

1.  The FSM's military records show he enlisted in the Regular Army on 22 March 2007.  His enlistment documents include:

	a.  a DD Form 4 (Enlistment/Reenlistment Document – Armed Forces of the United States);

	b.  a DA Form 3286 (Statement for Enlistment – U.S. Army Enlistment Program) which shows the FSM enlisted for the U.S. Army Incentive Enlistment Program (U.S. Army High Grad Bonus (Associate/VO-Tech), U.S. Army LRP);

	c.  a DA Form 1966 (Record of Military Processing – Armed Forces of the United States) which shows the FSM attended and subsequently graduated from UTI;

   d.  a USAREC Form 1232 which shows the FSM understood that in order to participate in the LRP, he must disenroll from the Montgomery GI Bill (MGIB); and

   e.  a DD Form 2366 (Montgomery GI Bill (MGIB) Act of 1984 Basic Enrollment) which shows the FSM did not desire to participate in the MGIB.

2.  The FSM's U.S. Army Human Resources Command Form 1569 (Transcript of Military Record) indicates the following:

   a.  item 16 (Foreign Service (Name and Country)) shows he deployed to Afghanistan for the period 24 April 2008 through 17 July 2009;

   b.  item 18 (Reason and Authority for Separation) shows "Died on Active Duty"; and 

   c.  item 19 (Remarks) lists the FSM's awards and decorations as the Army Commendation Medal, National Defense Service Medal, Afghanistan Campaign Medal with one bronze service star, North Atlantic Treaty Organization Medal, Army Service Ribbon, and Global War on Terrorism Service Medal.

3.  In the processing of this case, an advisory opinion was obtained from the Chief, Soldier Programs and Services Division, U.S. Army Human Resources Command, Fort Knox, KY.  The advisory official recommended approval of the applicant's request for compensation under the U.S. Army LRP.  Based on the evidence provided and with the expansion of the law, the U.S. Army Human Resources Command Education Incentives Branch has stated they would have paid the Consolidated Parent Loans.  Unfortunately, there is no standard procedure which would settle loans in the final death benefits action or in the case of grievous injury; therefore, payment could not be authorized by the U.S. Army Human Resources Command toward the student loan.

4.  The advisory official noted that at the time a Soldier enters active duty, individuals contracting for the LRP must have met certain eligibility criteria.  Part of the criteria is to have loans which qualify under the LRP.  As outlined in the enlistment contract, Statement of Understanding U.S. Army Incentive Enlistment Program, DA Form 3286-66, section 4, item a, states, " I understand that under this program (LRP) that the government will repay a designated portion of any loan I incurred that was made, insured, or guaranteed under Part B of the Higher Education Act of 1965 (Guaranteed Student Loan) or any loan under Part E of such act (National Direct Student Loan) after 1 October 1975 and before I enlist into the Regular Army."  In addition, Title 10, U.S. Code, section 2171, confirmed loans eligible for repayment must be made under Title IV, Part B, D, or E of the Higher Education Act.

5.  The same advisory opinion recommended that the computation of any payment be based on the information provided in the FSM's paperwork (promissory notes from ACS).  The total amount verified for the Consolidated Parent Loan was $11,944.00 and the opinion recommended that any amount so authorized be sent directly to the applicant.

6.  The advisory opinion was furnished to the applicant on 3 June 2011 for information and to allow her the opportunity to submit comments or a rebuttal.  The applicant did not submit comments to the advisory opinion.

7.  The applicant provides a USAREC Form 1232 which shows the total amount of the FSM's outstanding Federal Plus loan balance to ACS, Inc., was $11,944.89 as of 23 February 2007.

8.  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, or William D. Ford Loan.  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 LRP 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 only pay the lending institution.

9.  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.”

10.  The National Defense Authorization Act 2006 expanded Title 10, U.S. Code, section 2171, to allow repayment of education loans made by a lender under pension plans, state and commercial loans, and other similar sources which are not federally insured in case of death or serious injury.

DISCUSSION AND CONCLUSIONS:

1.  The applicant's request for payment of the FSM's ACS, Inc., student loan under the LRP has been carefully considered and is found to have merit.

2.  The applicant provided information which indicates the FSM believed his loans qualified under the LRP.  Based on the evidence provided and with the expansion of the law, the U.S. Army Human Resources Command Education Incentives Branch stated they would have paid the Consolidated Parent Loans.  Unfortunately, there is no standard procedure which would settle loans in the final death benefits action or in the case of grievous injury; therefore, payment could not be authorized by the U.S. Army Human Resources Command toward the student loan.

3.  In view of the facts and circumstances of this case, it would be appropriate and serve the interest of justice and equity to authorize the applicant to receive the total amount verified for the Consolidated Parent Loan benefit in question.

4.  The FSM’s military records may be corrected to show his DA Form 3286 was amended to include the sentence “If a student loan is accepted by the officials processing you for enlistment as payable under the LRP and the loan is not payable for any reason, 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 would allow the Board to invoke that provision and pay the applicant the amount the FSM's lending institutions would have been paid under the LRP.

BOARD VOTE:

________  ________  ________  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 a recommendation for relief.  As a result, the Board recommends that the FSM's DA Form 3286 be amended to include the sentence “If a student loan is accepted by the officials processing you for enlistment as payable under the LRP and the loan is not payable for any reason, 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.  That as a result of the foregoing correction the Defense Finance and Accounting Service shall remit payment to the applicant of the total amount of the FSM's Affiliated Computer Services, Incorporated loan to which the FSM would be entitled as a result of this correction.



      ___________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)                                         AR20100025331



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ABCMR Record of Proceedings (cont)                                         AR20100025331



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