BOARD DATE:	  8 November 2012

		DOCKET NUMBER:  AR20110016526 


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 that his Bank One, NA (Ohio) private student loan in the amount of $28,612.80 be repaid under the provisions of the Army's Student Loan Repayment Program (SLRP).

2.  He states his SLRP was approved when he enlisted in the California Army National Guard (CAARNG) and it should be honored. 

3.  The applicant provides:

* a DD Form 4 (Enlistment/Reenlistment Document – Armed Forces of the United States), dated 28 April 2009
* Annex L to DD Form 4 (SLRP Addendum of the ARNG of the United States (ARNGUS)
* a student loan document 

CONSIDERATION OF EVIDENCE:

1.  He enlisted in the CAARNG, on 28 April 2009, for 8 years and he is currently serving as a drilling Guardsman in the rank of specialist/E-4.  

2.  The applicant provided a copy of a promissory note from Bank One, NA (Ohio) which shows that prior to enlistment he obtained a private student loan in the amount of $28,612.80 on 20 October 2004.

3.  He also provided a copy of Annex L to DD Form 4 of his enlistment contract, dated 28 April 2009, which shows in section II (Eligibility), he acknowledged and agreed to the following:

* he was a non-prior service applicant who agreed to serve 6 years in the CAARNG
* he enlisted to serve in D Company, 1st Battalion, 140th Infantry Regiment, which was authorized the SLRP
* the Government would repay his student loan in the amount of $28,612.80
* the total amount of repayment for qualifying loans will not exceed $50,000

4.  Section III (Entitlement and Payments) of Annex L to DD Form 4 shows he acknowledged he understood the Government would repay a designated portion of any outstanding loan(s) he had secured since 1 October 1975.  Such loan(s) must have been made, insured, or guaranteed under Part B of the Higher Education Act of 1965 (Guaranteed Student Loans Federally Insured Student Loans, or any loan made under Part E of such act (National Direct Student Loan(s) or any loan incurred for educational purposes made by a lender that was an agency or instrumentality of a State; a financial or credit institution that was subject to examination and supervision by an agency of the United States or and State; from a pension fund or a nonprofit private entity (subject to case-by-case review/approval by the National Guard Bureau (NGB), United Army Reserve Command or Headquarters, Department of the Army approval authority).

5.  His record contains a DD Form 220 (Active Duty Report) and a Memorandum for Record that show the applicant completed training and was awarded military occupational specialty (MOS) 42R (Reserve Component Basic Music) and additional skill identifier 9B (Trumpet) on 13 September 2010.  

6.  During the processing of this case, an advisory opinion was obtained from the Chief, Personnel and Policy Division, NGB.

	a.  The NGB recommended approval of the applicant's request for payment of his student loans under the SLRP.  He was told he had to enlist in the CAARNG for 6 years to qualify for the SLRP and he did.  He provided a copy of his student loan documents when he signed his enlistment contract and he was not told that his private student loans did not qualify for payment. 

	b.  Due to no fault of the applicant, Military Entrance Processing Station Guidance Counselors promised and contracted the applicant for payment of loans that were ineligible for payment under the SLRP.  The applicant kept his 


end of the contractual obligation based on guidance he received during his enlistment process. 

7.  Army Regulation 601-210 (Active and Reserve Components Enlistment Program) prescribes eligibility criteria governing the enlistment of persons, with or without prior service, into the Regular Army, U. S. Army Reserve, and ARNG.

8.  Army Regulation 601-210, chapter 6, section II, contains guidance for the guidance counselor processing phase.  It states that guidance counselors will verify the applicants' eligibility for enlistment and counsel applicants who failed to meet specific qualification for MOS, options, and assignments for which they applied and advise them of all other available options that would still meet the applicants' needs, wants, and desires, as well at the needs of the Army.

9.  Army Regulation 135-7 (Incentive Programs) restricts the SLRP to those Reserve Soldiers who either enlist or reenlist for a skill or unit approved by the Department of the Army and disseminated to the field by a list of MOS's and units which is updated on a periodic basis.  This educational incentive may only be elected at the time of enlistment or reenlistment.  This incentive pays a limited sum of money to a lending institution on the anniversary date of an enlistment or reenlistment.  These payments continue on a yearly basis unless the Soldier loses eligibility by no longer serving in the approved MOS or unit.

10.  Title 10, U.S. Code, section 1552, the law which provides for the Board, states, "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.  The applicant's request for correction of his records to show he is eligible for the SLRP as stated in his enlistment contract has been carefully considered.

2.  By law, the Secretary concerned may authorize the SLRP to eligible Soldiers in conjunction with enlistment/reenlistment in the Selected Reserve.  The law allows the Secretary concerned the latitude in establishing the criteria and eligibility for the SLRP.  The governing regulation stipulates that guidance counselors are required to verify the applicants' eligibility for enlistment and counsel applicants who failed to meet specific qualifications for MOS, options, and assignments, for which they applied and advise them of all other available options that would still meet the applicants' needs, wants, and desires as well as the needs of the Army.

3.  The evidence of record confirms the applicant entered into an enlistment contract on 28 April 2009 that included authorization for SLRP benefits not to exceed $50,000.00 in good faith; however, through no fault of his own, the loan was later discovered to be ineligible under the SLRP.

4.  In view of the facts of this case, it would be appropriate and serve the interest of justice and equity to correct his record by showing the Army authorized him to receive the SLRP benefit in question as an exception to policy and to pay him any amounts due based on authorized qualifying student loans.

5.  The applicant's military records should be corrected to show his SLRP Addendum was amended to include the statement, "If you enlist for the SLRP and the government fails to verify that you meet the eligibility criteria for entitlement to the SLRP, 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 would allow the Board to invoke that provision and pay him the amount his lending institution would have been paid under the SLRP.

BOARD VOTE:

___X__  ___X_____  ____X____  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.  amending Annex L to DD Form 4, dated 28 April 2009, to include the statement, "If you enlist for the SLRP and the government fails to verify that you meet the eligibility criteria for entitlement to the SLRP, 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"; and

     b.  showing he is authorized the SLRP benefit as written in his enlistment contract, dated 28 April 2009, as amended by this correction and paying him the amount of the loan.




      _______ _ 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)                                         AR20110016526



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ABCMR Record of Proceedings (cont)                                         AR20110016526



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