IN THE CASE OF:	  

		BOARD DATE:  12 November 2013

		DOCKET NUMBER:  AR20130002338 


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, in effect, her Student Loan Repayment Program (SLRP) contract be honored as written.

2.  The applicant states:

* according to her contract, she qualified for $10,000 in loan repayment following the completion of her initial active duty for training (IADT), military occupational specialty qualification, and completion of an 8-year service obligation
* she submitted a DD Form 2475 (Department of Defense Educational Loan Repayment Program (LRP) Annual Application) to her unit for payments and was told it would be a lengthy process and that her lender would contact her
* after receiving a default letter from her lender, she followed up with her unit and was told her DD Form 2475 was either not processed or was misplaced
* further and repeated inquires to her unit provided no remedy or guidance for rectifying the situation and this has resulted in additional and extensive costs to bring the loan out of default
* initially her unit told her a remedy was not available; however, she recently discovered the mishandling could be appealed

3.  The applicant provides:

* DD Form 220 (Active Duty Report)
* 3 pages of Sallie Mae Loan Account Information
* Chronological Statement of Retirement Points, dated 1 October 2012
* DD Form 4 (Enlistment/Reenlistment Document – Armed Forces of the United States)
* DA Form 3540 (Certificate and Acknowledgement of Service Requirements for Individuals Enlisting, Reenlisting, or Transferring into Troop Program Units of the U.S. Army Reserve) (Annex A to DD Form 4/1)
* DA Form 3286-67 (Statement of Understanding) (Army Policy) (Annex B to DD Form 4)
* DA Form 5261-R (Selected Reserve Incentive Program – Enlistment Bonus Addendum)
* Student Loan Repayment Program Acknowledgement
* DA Form 5261-4-R (Student Loan Repayment Program Addendum), dated 9 February 1993
* DD Form 93 (Record of Emergency Data)
* 6 pages of medical record extracts
* DD Form 1966 (Record of Military Processing – Armed Forces of the United States)
* Army Reserve Reservation Processing Record Copy
* DA Form 5435-R (Statement of Understanding – The Selected Reserve Montgomery GI Bill)
* Georgia Southern University Transcripts
* Orders Number 39-15, issued by the Jacksonville Military Entrance Processing Station (MEPS), Jacksonville, FL, dated 1 March 1993 

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.  On 9 February 1993, the applicant enlisted in the U.S. Army Reserve (USAR) for an 8-year period.

3.  She provided a copy of Annex A of her enlistment contract, dated 9 February 1993, which shows she acknowledged she agreed to the following:

* serve 6 years as an assigned member of a troop program unit and 
2 years in the Individual Ready Reserve
* training in military occupational specialty (MOS) 91M (Hospital Food Service Specialist)
* a $10,000.00 SLRP entitlement

4.  She also provided a copy of a DA Form 5261-4-R dated 9 February 1993.  Section III (Acknowledgement) of this document shows she contracted for completion of IADT and qualification in MOS 91M, and she would be granted $10,000.00 in loan repayments, which was approved by Headquarters, Department of the Army.  Both the applicant and the guidance counselor signed this document. 

5.  Section V (Entitlement) of her SLRP Addendum shows she understood that loan repayment under the SLRP would apply and the Government would repay a designated portion of any outstanding loan(s) she 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; from a pension fund or a nonprofit private entity (subject to case-by-case review/approval by the National Guard Bureau, United Army Reserve Command or Headquarters, Department of the Army approval authority).

6.  On 23 September 2013, in the processing of this case, an advisory opinion was obtained from the Chief, Personnel Management Division, Headquarters,
U.S. Army Reserve Command (USARC).  This official recommended denial of the applicant's request and stated that although evidence suggests she maintained eligibility for the LRP throughout the obligation period, no evidence indicates the loans existed prior to her contract date or originated during her service period.  Additionally, she did not provide a copy of the DD Form 2475 she initiated in 1995.

7.  On 24 September 2013, a copy of the advisory opinion was provided to the applicant for information and to allow her the opportunity to submit comments or a rebuttal.

8.  On 22 October 2013, the applicant provided copies of five Stafford Loan Application and Promissory Notes which show that, prior to her enlistment, she attended Georgia Southern University from academic year 1989 through 1993.  She obtained five Sallie Mae loans in the amount of $12,089.00.

9.  Army Regulation 601-210 (Regular Army and Army Reserve Enlistment Program) prescribes eligibility criteria governing the enlistment of persons, with or without prior service, into the Regular Army and the USAR.  Chapter 9 (Enlistment Programs/Options) states that these programs/options are designed to merge valid Army requirements with personal desires.  

10.  Army Regulation 601-210, Table 9-4 contains guidance on enlistment option program 9C (Bonus/Army College Fund/Loan Repayment Program).  Table 9-4 provides program processing procedures that require specific counseling and administrative actions in connection with processing members enlisting with the LRP incentive.  In addition, Line 7 of Table 9-4 requires the guidance counselor to verify that the applicant has qualifying loans if enlisting for the LRP, to advise the applicant if any loan is not eligible, and to have the applicant acknowledge same in the remarks section of the DD Form 1966 (Record of Military Processing – Armed Forces of the United States) series.

11.  The SLRP provides for the repayment by the Government of a designated portion of any outstanding student loan(s) secured after 1 October 1975.  The loan amount to be repaid is 15 percent of the original balance of the loan plus accrued interest not paid by the Department of Education, or $500.00 plus the accrued interest not paid by the Department of the Education, whichever is greater.  Payments will be made for each year of satisfactory service in the Selected Reserve.  The maximum amount of loans against which the 15 percent is computed will not exceed $10,000.  This equates to a maximum annual repayment of $1,500 plus interest.  If the amount set for repayment is less than $500.00, then $500.00 becomes the calculated amount for repayment that year. 

12.  To be eligible for the SLRP incentive, a person must contractually obligate himself or herself to serve satisfactorily, must serve in a Reserve unit for a full term of the contractual agreement and must further obligate himself or herself to continue to serve in the same component and the same MOS unless excused for 


the convenience of the Government.  Entitlement to the SLRP will stop if the Soldier is separated from the Selected Reserve.  Each complete satisfactory year of service performed under this SLRP agreement establishes an anniversary date.  Any qualifying loan which is at least a year old may then be paid in accordance with the terms of this educational enlistment incentive.

13.  The doctrine of laches is defined by Black's Law Dictionary, sixth edition, as the neglect to assert a right or claim which, taken together with lapse of time and other circumstances causing prejudice to the adverse party, operates as a bar in a court of equity.

DISCUSSION AND CONCLUSIONS:

1.  The evidence of record shows the applicant enlisted for the SLRP incentive up to $10,000.  She had obtained five student loans for academic year 1989 through 1993 prior to her enlistment in February 1993.

2.  Nevertheless, there is no evidence indicating she met her obligations regarding the administrative processing of loan repayments.  She failed to provide a copy of her DD Forms 2475 or any evidence any such forms were ever submitted.

3.  More than 20 years have elapsed since she enlisted.  An arbitrary ruling in her favor, without knowing the exact circumstances of what happened at the time and what her complete finance records would have shown, would cause prejudice to the Government.  Had she applied to the ABCMR in a timely manner, an equitable decision could possibly have been made in her case.  However, since it is now 20 years after her enlistment, the doctrine of laches is invoked in her case.

4.  In view of the foregoing, there is no basis for granting the applicant's requested relief.

BOARD VOTE:

________  ________  ________  GRANT FULL RELIEF 

________  ________  ________  GRANT PARTIAL RELIEF 

________  ________  ________  GRANT FORMAL HEARING

____X___  ____X___  ___X__ _  DENY APPLICATION

BOARD DETERMINATION/RECOMMENDATION:

The evidence presented does not demonstrate the existence of a probable error or injustice.  Therefore, the Board determined that the overall merits of this case are insufficient as a basis for correction of the records of the individual concerned.
      
      
      
      _______ _  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)                                         AR20130002338



3


ARMY BOARD FOR CORRECTION OF MILITARY RECORDS

 RECORD OF PROCEEDINGS


1

ABCMR Record of Proceedings (cont)                                         AR20130002338



2


ARMY BOARD FOR CORRECTION OF MILITARY RECORDS

 RECORD OF PROCEEDINGS


1