IN THE CASE OF:	  

		BOARD DATE:	  19 June 2012

		DOCKET NUMBER:  AR20120006583 


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 reconsideration of the Board's denial of his previous request for an exception to policy to disenroll from the Montgomery GI Bill for the purpose of immediate enrollment in the Loan Repayment Program (LRP).  He further requests that the LRP target his private student loans of record.

2.  He states he requests an exception to policy in his case since he was never counseled on the LRP at the time of his enlistment.  This was substantiated by a statement from Staff Sergeant S____, the recruiting station commander.  He states the U.S. Army Human Resources Command (HRC) web site clearly showed his private loans were not LRP eligible loans.  His student loan debt was originally more than $162,000, of which approximately $139,000 was private loan debt and $19,000 from federal loans.  However, recent guidance from HRC representatives and a review of Title 10, U.S. Code Section 2171 (a)(1)(D) leads him to request reconsideration of his previously-denied request.

3.  He provides:

* a written statement from the recruiting station commander
* a printout of the Title 10, U.S. Code Section 2171 (Education Loan Repayment Program)

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 AR20110019553, on 12 January 2012.

2.  The written statement from the recruiting station commander and a printout of Title 10, U.S. Code Section 2171 submitted by the applicant are new evidence, which requires that the Board reconsider his request.

3.  On 20 October 2009, he enlisted in the Regular Army.  Upon completion of basic combat training, and as a result of his civilian acquired skills, he was awarded military occupational specialty 42R (Bandperson (Tuba)).

4.  He currently serves as a specialist/E-4 in the Regular Army.

5.  His records maintained in the interactive Personnel Electronic Records Management System (iPERMS) contain a DA Form 3286 (Statement for Enlistment) Annex B that shows the applicant acknowledged he was enlisting for the following program options on 20 October 2009:

	a.  U.S. Army Station/Unit/Area/Command Enlistment Program; 

	b.  U.S. Army Incentive Enlistment Program (U.S. Army High Grad Bonus (Bachelor), U.S. Army Civilian Acquired Skills Bonus, U.S. Army College Fund ($70,956), 4 year; and

	c.  MOS: 42R9F (Army Bandperson (Tuba Player))

6.  On 13 July 2009 and 23 October 2009, he signed two DD Forms 2366 which specifically state, "I understand that UNLESS I DISENROLL from the Montgomery GI Bill, my basic pay will be reduced $100.00 per month, or the current monthly rate until $1200.00 has been deducted; this basic pay reduction CANNOT BE REFUNDED, SUSPENDED, OR STOPPED, THIS IS AN IRREVOCABLE DECISION."  He acknowledged and affirmed his understanding of these policies by affixing his signature to both forms.

7.  His available record does not contain any documentation that shows he enlisted for the LRP.

8.  He provides an email from him to HRC regarding the possibility of converting his GI Bill to the Army LRP although it apparently was not available for payment of private student loans at the time of his enlistment in 2009.  The response from HRC indicated that private loans were paid on in 2009.  However, he was not eligible for the LRP because he did not contract for it at his initial enlistment. 

9.  He provides a memorandum for record from the recruiting station commander indicating that recruiting personnel were not aware that the government repaid private loans for college; therefore, the applicant was not counseled as such.  The recruiting station commander further stated his office still operates under the direction that the LRP only pays for government student loans.

10.  U.S. Army Recruiting Command (USAREC) Message 09-129, subject: Enlistment Incentives Program Change Effective 10 June 2009 (Update 4 August 2009) stated the LRP was only available to non-prior service applicants.

	a.  Guidance counselors would completely brief applicants selecting the LRP as an enlistment option in accordance with Army Regulation 601-210 (Regular Army and Army Reserve Enlistment Program).

	b.  Applicants may receive either the ACF or LRP but not both.

	c.  The maximum reimbursable loan amount was $65,000. 

	d.  Military occupational specialty 42R9F1 was listed as authorized the LRP.

11.  An HRC Information Paper, date 20 March 2012, subject:  Loan Repayment Program, states the LRP is a Department of Army option authorized by Public Law 99-145, Section 671(a)(1).  Individuals must contract for the LRP upon entry on active duty.

	a.  Eligibility criteria for this program consists of the following:  An individual must contract for the LRP as a non-prior service accession for a 3 or more year term of service into the active force; must disenroll from Montgomery GI Bill; and contract for a selected MOS.  Loans must be made, insured, or guaranteed prior to entry on active duty. 

	b.  Loans that qualify for repayment:

		(1) any loan made, insured, or guaranteed under part B of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq.); 

		(2) any loan made under part D of such title (the William D. Ford Federal Direct Loan Program, 20 U.S.C. 1087a et seq.); 

		(3) any loan made under part E of such title (20 U.S.C. 1087aa et seq.); or 

		(4) any loan incurred for educational purposes made by a lender that is – 

		(a) an agency or instrumentality of a State; 

		(b) a financial or credit institution (including an insurance company) that is subject to examination and supervision by an agency of the United States or any State; or

		(c) from a pension fund or a non-profit private entity (subject to case-by-case review/approval by this office). 

12.  Army Regulation 601-210 prescribes eligibility criteria governing the enlistment of persons, with or without prior service, into the Regular Army and the U.S. Army Reserve.

	a.  Chapter 6, in effect at the time, stated the guidance counselor will ensure an applicant’s higher educational loan(s) qualify for loan repayment if selecting the LRP option.  The guidance counselor would counsel the applicant on the benefits of the Veteran’s Educational Assistance Act of 1984 (Montgomery G.I. Bill).  The counselor would ensure the applicant completed the statement on enlistment annex for Educational Incentive Programs for which contracting.  The counselor would ensure the applicant’s higher educational loan(s) qualify for loan repayment if selecting the LRP option.

	b.  Chapter 9 (Enlistment Programs/Options), in effect at the time, stated the LRP Incentive Option is open to non-prior service applicants only.

	c.  	Applicants would be informed that for the LRP they must disenroll from the Montgomery GI Bill.

	d.  The Government will repay a designated portion of any loan incurred that was made, insured, or guaranteed under part B of the Higher Education Act of 1965 (Guaranteed Student Loan), Part D (William D. Ford Direct Loan
Program), or any loan under part E of such act (Perkins Loan (Formerly the National Direct Student Loan)) before enlistment into the Regular Army (RA).

	e.  Provided the applicant meets and maintains the prescribed prerequisites and has qualifying loans in good standing, enlistment for the LRP ensures that the portion or amount of loan that may be repaid is $1500 or one-third of the amount of the qualifying loans, whichever is greater for every year of service. The Army does not pay interest or fees or reimburse Soldiers for payments already made on loans.

	f.  Repayment is made only after each successful year of active duty performed commencing on the date of RA enlistment.
	g.  The Soldier must be advised that repayment amounts paid by the Government are subject to Federal and State income taxes as taxable income each year that payment is made.

	h.  Soldiers must remain qualified and in the incentive MOS for the duration of the initial enlistment, unless otherwise directed by HQDA.  Change of MOS because of normal career progression is authorized.

DISCUSSION AND CONCLUSIONS:

1.  The applicant contends his records should be corrected to allow him an exception to policy to disenroll from the Montgomery GI Bill for the purpose of immediate enrollment in the LRP. 

2.  The evidence of record shows he twice signed a DD Form 2366 in which he enrolled in the Montgomery GI Bill Program and acknowledged the program's guidelines by affixing his signature.  However, based on the memorandum for record from the recruiting station commander, it appears the applicant was not counseled to the effect that the LRP may be used to pay certain private loans approved on a case-by-case basis.  The station commander stated he and his personnel were not aware that the government repaid private loans for college and they still operate under the same premise.  

3.  It is apparent there was some confusion regarding eligibility for repayment of the applicant’s student loans at the time of his enlistment because his loans were not made, insured, or guaranteed under Title IV, Part B, D, or E of the Higher Education Act of 1965, as is required prior to a change in the law and policy in 2009.

4.  Non-prior service enlistees can enroll for the Montgomery GI Bill combined with the ACF or the LRP without the Montgomery GI Bill, not both.  His enlistment documents show he acknowledged he was enlisting for the Montgomery GI Bill with the ACF and his decision to do so is irrevocable.  However, evidence indicates he was not counseled to the effect that HRC on behalf of the Secretary of Defense may approve certain private loans for use with the LRP.
  
5.  Therefore, in the interest of justice, it would be appropriate to amend his enlistment documents including his DA Forms 3286 (Annexes A and B) to show he enlisted for the LRP option ($65,000) instead of for the Montgomery GI Bill with ACF option.

6.  Based on this correction, the applicant should submit any loan promissory notes for which he desires repayment.
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 was sufficient to warrant partial amendment of the ABCMR’s decision in Docket Number AR20110019553, dated 12 January 2012.  As a result, the Board recommends that all Department of the Army records of the individual concerned be corrected by amending his enlistment documents including his DA Forms 3286 (Annexes A and B) to show he enlisted for the LRP option ($65,000) instead of for the Montgomery GI Bill with ACF option.

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 the LRP targeting his private student loans of record.




      _______ _  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)                                         AR20120006583



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ABCMR Record of Proceedings (cont)                                         AR20120006583



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