IN THE CASE OF:	  

		BOARD DATE:	  6 September 2011

		DOCKET NUMBER:  AR20110001202 


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 receipt of his $8,000.00 enlistment bonus and to be paid for his student loans.

2.  The applicant states he lived up to his end of his enlistment contract and he expects the Army to live up to its end.

3.  The applicant provides a letter from the Illinois Student Assistance Commission, dated 15 March 2004; a DD Form 827 (Application for Arrears in Pay), dated 5 July 2010; a letter from the Defense Finance and Accounting Service (DFAS), dated 6 January 2011; and an undated letter from the applicant to DFAS.

CONSIDERATION OF EVIDENCE:

1.  Title 10, U.S. Code, section 1552(b), provides that applications for correction of military records must be filed within 3 years after discovery of the alleged error or injustice.  This provision of law also allows the Army Board for Correction of Military Records (ABCMR) to excuse an applicant's failure to timely file within the 3-year statute of limitations if the ABCMR determines it would be in the interest of justice to do so.  While it appears the applicant did not file within the time frame provided in the statute of limitations, the ABCMR has elected to conduct a substantive review of this case and, only to the extent relief, if any, is granted, has determined it is in the interest of justice to excuse the applicant's failure to timely file.  In all other respects, there are insufficient bases to waive the statute of limitations for timely filing.

2.  The applicant's DD Form 4 (Enlistment/Reenlistment Document – Armed Forces of the United States) and DA Form 3286-59 (Statement for Enlistment – U.S. Army Enlistment Program – U.S. Army Delayed Enlistment Program (DEP)) show he enlisted in the U.S. Army Reserve DEP on 28 September 2001 for the military occupational specialty (MOS) of health care specialist with subsequent enlistment in the Regular Army.  At that time his contract indicated he was enlisting for an $8,000.00 bonus and the Loan Repayment Program (LRP).  He was discharged from the DEP and he enlisted in the Regular Army on 26 November 2001.  At that time his DA Form 3286-66 (Statement of Understanding – U.S. Army Incentive Enlistment Program) shows he was not enlisting for a cash bonus, that he was only enlisting for the LRP and the station/unit/command options.

3.  He was awarded the MOS of health care specialist, served in Iraq from 13 November 2003 to 1 October 2004 and again from 31 October 2005 to 30 October 2006, and was promoted to pay grade E-5.

4.  He was honorably released from active duty on 7 January 2007.

5.  The documents provided by the applicant include:

	a.  A letter from the Illinois Student Assistance Commission, dated 15 March 2004, informing him his defaulted student loan was paid in full.

	b.  A DD Form 827, dated 5 July 2010, requesting payment of an $8,000.00 enlistment bonus and $6,000.00 for his student loans.

		(1)  He explains his enlistment bonus was not contained in his contract when he reported for shipment to initial training even though it was in his original contract.  He was informed he would receive the bonus since it was listed in his original contract.

		(2)  He stopped paying his student loans per the instructions of his guidance counselor, but his student loans were not deferred or paid as he was promised.

	c.  A letter from DFAS, dated 6 January 2011, informing him that his bonus could not be paid as DFAS couldn't determine if all aspects of his contract were met.

	d.  An undated letter from the applicant to DFAS addressing his claim for payment of his enlistment bonus and LRP.

6.  In the processing of this case an advisory opinion was obtained from Headquarters, Department of the Army, Deputy Chief of Staff, G-1.  The Office of the Deputy Chief of Staff,G-1, stated the applicant met the criteria for both the enlistment bonus and LRP at the time of his enlistment.  The G-1 recommended approval of the applicant's request.  The applicant was provided a copy of the advisory opinion and agreed with it.

7.  In the processing of this case a member of the Board staff contacted the G-1 and asked whether someone enlisting in the Regular Army on 26 November 2001 could receive both a cash bonus and LRP.  The G-1 answered in the affirmative.

8.  The LRP 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, Parent Loans for Undergraduate Students, Auxiliary Loan Assistance for Students, or consolidated loans which fall under Title IV, part B or E of the Higher Education Act.  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 $1,500.00, whichever is greater, is authorized annually to the loan holder on the total remaining original outstanding principal balance.

9.  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.

10.  In the processing of this case a member of the Board staff contacted the applicant and requested additional evidence which would document his attempts to be paid his enlistment bonus and have his student loans paid while he was on active duty.  The applicant provided a letter from the Illinois Student Assistance Commission (ISAC) which shows that loans he made from 21 August 1987 to 7 August 1992 were paid in full on 12 March 2004.  He also submitted an ISAC grand total which shows he had a revolving credit account with that organization and the transactions he made on the account from 4 December 2002.


DISCUSSION AND CONCLUSIONS:

1.  The Office of the Deputy Chief of Staff, G-1, confirmed the applicant was eligible for the cash bonus at the time of his enlistment, the applicant's record shows he was awarded the MOS for which he enlisted, he honorably completed his enlistment, and he deployed to Iraq twice.  As such, it must be presumed that the applicant's cash bonus option was inadvertently omitted from his DA Form 3286-66 and it would now be appropriate to add the $8,000.00 cash bonus to that document.  In addition, since the evidence shows the applicant was awarded the MOS for which he enlisted and honorably completed his enlistment, the preponderance of evidence shows he met the requirements to be paid his bonus.  Therefore, it would be appropriate to now pay him that bonus.

2.  As for the applicant's student loans, the documentation provided does not show whether they were in good standing when he enlisted, a prerequisite for payment under the LRP.  However, whether the loans were in good standing when he enlisted is a moot point.  Those loans went into default at some point and were paid by the applicant.  As such, they are no longer payable under the LRP.  In addition, loans made under the ISAC are not Federally-insured under one of the programs which qualified under the LRP at that time.  As such, there is no basis for paying his student loans under the LRP.

BOARD VOTE:

________  ________  ________  GRANT FULL RELIEF 

___X____  ___X____  ___X____  GRANT PARTIAL RELIEF 

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

BOARD DETERMINATION/RECOMMENDATION:

1.  The Board determined the evidence presented is sufficient to warrant a recommendation for partial relief.  As a result, the Board recommends that all Department of the Army records of the individual concerned be corrected by:

	a.  showing he completed a DA Form 3286-66 on 26 November 2001 which adds an $8,000.00.00 critical skill enlistment bonus and

	b.  paying him the $8,000.00.00 enlistment bonus.

2.  The Board further determined the evidence presented is insufficient to warrant a portion of the requested relief.  As a result, the Board recommends denial of so much of the application that pertains to his student loans.



      _____________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)                                         AR2011000.001202



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ABCMR Record of Proceedings (cont)                                     AR20110001202



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