BOARD DATE:	  29 November 2012

		DOCKET NUMBER:  AR20120007487 


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 his military records be corrected to show he enlisted for the Student Loan Repayment Program (SLRP).

2.  The applicant states:

	a.  he was awarded the SLRP option.  He had to trade his Montgomery GI Bill (MGIB) in order to receive the SLRP option.

	b.  after basic and advanced individual training he deployed to Iraq.  While serving in Iraq he was told the SLRP was not in his military files and thus he could not received the benefit.  Someone mistakenly did not put the SLRP packet in his paperwork.  In addition, his records still indicated he forfeited the MGIB and because of this error he lost the MGIB and SLRP.  	 

	c.  he requests to be reimbursed for the loan payments he has made during the last 3 years.

3.  The applicant provides:

* DD Form 2366 (MGIB Act of 1984)
* Enlistment contract, dated 24 May 2012



CONSIDERATION OF EVIDENCE:

1.  The applicant enlisted in the U.S. Army Reserve (USAR) on 6 March 2009 under the delayed entry program.  He was discharged from the USAR and enlisted in the Regular Army on 5 May 2009 for a period of 3 years and 
39 weeks.  His DA Form 3286 (Statement for Enlistment, United States Army Enlistment Program) does not show he enlisted for the SLRP.  There is also no SLRP Addendum.    

2.  His DD Form 2366, dated 12 May 2009, states "I UNDERSTAND THAT I AM ENLISTING FOR THE LOAN REPAYMENT PLAN, THEREFORE, I AM DISENROLLING FROM THE MONTGOMERY GI BILL."  

3.  In the processing of this case, an advisory opinion was obtained from the Chief, Incentives and Budget Branch Enlisted Accessions Division, Office of the Deputy Chief of Staff, G-1, Washington, D.C.  The advisory official points out:

	a.  although the applicant was qualified for and was offered the SLRP, his enlistment contract did not contain any mention of the SLRP or a SLRP Addendum.

	b.  review of his records show he declined the MGIB when he enlisted in the Army and the verbiage on the MGIB annex clearly states he was declining the MGIB to participate in the SLRP.  

	c.  his contract listed cash bonuses totaling $27,000.00 but no SLRP entry.
	
   d.  based on this error, the advisory official recommended that the applicant's records be corrected to show eligibility for the SLRP.

4.  A copy of the advisory opinion was provided to the applicant to provide comment or rebuttal.  The applicant did not respond within the given time frame.  

5.  The Student Loan Repayment Program is offered to Reserve Component Soldiers; the Loan Repayment Program (LRP) is offered to Regular Army Soldiers.

6.  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 (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, or William D. Ford Loan.  Before entering active duty, the loan (to a maximum of $65,000) 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.

7.  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.

8.  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."

DISCUSSION AND CONCLUSIONS:

1.  The applicant contends he was offered the SLRP when he enlisted and he declined the MGIB to participate in the SLRP.  Although the SLRP was mentioned, it appears the LRP was meant.

2.  Since his DD Form 2355 clearly states he declined the MGIB to participate in the SLRP on 12 May 2009 and his enlistment contract does not show he enlisted for the LRP, it appears his DD Form 3286 is incorrect.

3.  It would be equitable to correct his DD Form 3286 to show he enlisted for the LRP to the maximum allowable limit of $65,000. 



4.  He requested to be reimbursed for the loan payments he has made during the last 3 years but he did not indicate the amount of his student loans, and the Government will normally only pay the lending institution.

5.  His military records should be corrected to show his DA Form 3286 was also amended to include the sentence, "If a student loan is later determined to not be eligible for payment for any reason, the ABCMR 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 LRP if he has, in fact, paid off his loans.

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 his DA Form 3286 to show he enlisted for the LRP for $65,000 and further 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 government fails to verify that all other enlistment documents are properly prepared so as to enable the loan to be repaid and such failure results in nonpayment of the loan by the LRP or the repayment or default of the loan, the ABCMR may pay the loan, at its sole discretion, in accordance with Title 10, U.S. Code, section 1552"; and 

	b.  as a result of the foregoing correction the Defense Finance and Accounting Service (DFAS) shall remit payment to the applicant and/or his lending institution the total amount of his student loans up to the amount of 


$65,000.00.  He will be required to submit the appropriate evidence (promissory notes, etc. and/or evidence to show he paid off the loans) to DFAS.  




      _______ _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)                                         AR20120007487





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ABCMR Record of Proceedings (cont)                                         AR20120007487



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