BOARD DATE:	25 September 2014  

		DOCKET NUMBER:  AR20140000942 


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 entitlement to the Student Loan Repayment Program (SLRP) in excess of $10,000.

2.  The applicant states:

	a.  When he reenlisted in the U.S. Army Reserve (USAR) on 12 March 2005 for the SLRP incentive that $10,000 maximum would be paid on his Sallie Mae student loan of $13,553.  In July 2008, he received notification from NELNET that they were the new loan holders as his student loan went into default.  He contacted Ms. PF, the unit administrator, and she contacted Ms. CM in the Education Department.  Ms. CM stated he was not entitled to the SLRP as the recruiter made an error in agreeing to the SLRP for an Army Reservist and not a full-time Regular Army Soldier.  

   b.  He was advised to contact Ms. TL, the person in charge of the SLRP for Army Reservists.  He was told he needed to submit an Exception to Policy (ETP) request through his chain of command.

	c.  In 2010, (CPT) GL submitted another ETP request after he received no information or results; the applicant then went to the Inspector General (IG).  In February 2011, he reenlisted for another 6 years.  In October 2011, CPT GL signed another ETP requesting full loan reimbursement plus additional fees and interest.  In April 2012, the IG contacted Ms. TL with the same request for full loan reimbursement plus additional fees and interest.  

	d.  In September 2012, the applicant received another loan default notification from Pioneer Credit, his new loan holder.  He contacted legal assistance; they contacted Ms. TL and she stated she was not budging and was only going to pay $10,000.

	e.  In November 2012, he was paid $6,000 toward his student loans.  In January 2013, after 8 years of non-resolution, his civilian pay was garnished at $936 a month.  To date, $6,558 has been garnished from his pay.  This amount does not include the $2,353.43 he has paid out of pocket during the course of the loan.

	f.  Due to no action being taking on his SLRP until November 2012, when the first loan repayment was processed by the USAR, his student loan went into default twice.  This breach of his reenlistment contract was directly responsible for the original loan amount of over $13,000 accruing interest and penalties which increased the principal loan amount to over $21,000.  It was at that point his civilian wages began to be garnished in January 2013.  

	g.  Although this issue was initially resolved by the 316th Expeditionary Sustainment Command (ESC) IG, the loan repayment custodians were not aware that his promotion to staff sergeant (SSG) and sergeant first class (SFC) in his previous military occupational specialty (MOS) required an automatic MOS change and they stopped his loan repayment.

	h.  He has diligently tried to resolve this injustice since his original reenlistment in 2005 by exhausting all levels of command and personnel actions without resolution.  The Board should honor his original loan repayment and approve an ETP for the additional debt he incurred.

3.  The applicant provides:

* two DD Forms 4 (Enlistment/Reenlistment Document - Armed Forces of the United States)
* DA Form 3540 (Certificate and Acknowledgement of USAR Service Requirements and Methods of Fulfillment)
* DA Form 5261-2 (Selected Reserve Incentive Program (SRIP) - Reenlistment/Extension Bonus Addendum)
* DA Form 5261-4 (SLRP Addendum)
* a Loan Consolidation Verification Certificate packet, dated 7 September 1999
* twenty-two pages of printouts and email relating to inquiries about the nonpayment of his student loans under the SLRP, dated between 27 April 2008 and 5 August 2013
* five memoranda, one undated and four dated between 30 August 2011 and 25 October 2011
* three orders
* twenty-five pages of various documents from creditors and Sallie Mae notifying him of debt incurred, dated between 20 April 2012 and 14 June 2013
* two Notice of Withholdings, dated 7 December 2012 and 7 January 2013
* two pay statements, dated 29 July 2013 and 30 December 2013
* a letter, dated 31 October 2013
* one page of Army Regulation 135-7 (Army National Guard and Army Reserve - Incentive Programs)
* a page titled Education Loan Repayment Program - Members of the Selected Reserve

CONSIDERATION OF EVIDENCE:

1.  The applicant enlisted in the USAR on 6 February 1997 for a period of 8 years and he held MOS 44B (Metal Worker).  He was promoted to the rank/grade of sergeant (SGT)/E-5 on 1 February 2002 and he was assigned to the 237th Maintenance Company, Fort Totten, NY.

2.  He reenlisted in the USAR on 12 March 2005 for a period of 6 years in MOS 44B for a Prior Service Enlistment Bonus (PSEB) in the amount of $15,000 and the SLRP.

3.  The applicant provides an SLRP Addendum, dated 12 March 2005, wherein it shows, in part, he was reenlisting in the USAR for a period of 6 years to serve in MOS 44B, an MOS for which he was qualified, for the SLRP in the amount of $10,000.  It stated repayment of qualifying student loans would be made after each year of satisfactory service in the Selected Reserve after securing the loan(s) and reaching the anniversary date of the agreement.  A maximum of $10,000 would be paid during his military career and the amount to be repaid each year would not exceed 15 percent (%) of the original loan balance (a maximum of $1,500) or $500, whichever was greater, plus the accrued interest.  This addendum is not filed in his Official Military Personnel File (OMPF).

4.  On 1 July 2009, he was promoted to the rank/grade of staff sergeant (SSG)/
E-6 and, in accordance with his career field, MOS 44B was withdrawn and he was awarded MOS 44E (Machinist).

5.  On 1 October 2009, MOS 44B changed to MOS 91W for Soldiers in the grades of E-1 to E-5; MOS 44E changed to MOS 91E (Allied Trade Specialist) for Soldiers in grade E-6; and for Soldiers in grade E-7, it changed to MOS 91X (Maintenance Supervisor) (emphasis added).

6.  On 5 March 2011, he reenlisted in the USAR for a period of 6 years.  He was promoted to the rank of SFC on 1 January 2012 and MOS 91E was withdrawn and he was awarded MOS 91X.  On 1 February 2012, he was assigned to the 854th Engineer Battalion, Kingston, NY.

7.  The applicant provides, in part:

   a.  Numerous documents that show he inquired on numerous occasions about the nonpayment of his student loans under the SLRP beginning in 2008.  A response dated 27 April 2008 stated according to the MOS listing issued in 2006, MOS 44B was not a qualifying MOS for the SLRP and he would need to submit an ETP.  
   
   b.  A memorandum, undated, subject: FY05 SRIP for the Army Reserve, issued by the Office of the Chief, Army Reserve, wherein it shows, in part, reenlistment in MOSs 44B and 41E were authorized for a PSEB of $10,000 effective 18 December 2004 through 31 March 2005, inclusive.

	c.  An email, dated 2 May 2013, wherein Mr. LF inquired about the applicant's problems with the SLRP payment.  He stated the applicant's account was erroneously terminated when he was promoted and awarded a "new" MOS.  However, he believed his "new" MOS was only part of a transition within his career field.

	d.  An email, dated 9 May 2013, wherein Ms. TL stated the applicant's account was reviewed and Mr. LF was correct, the account was erroneously terminated.  The account was reactivated and paperwork had been resubmitted to the pay center for processing.

	e.  An email, dated 5 July 2013, from the USAR Helpdesk, wherein it stated the applicant's loans were processed on 17 June 2013 and the maximum amount of $10,000 had been met.

8.  In the processing of this case an advisory opinion was obtained from the Incentives and Budget Branch, Enlisted Accessions Division, Office of the Deputy Chief of Staff, G-1, on 24 February 2014.  The advisory official recommended approval of the applicant's request, stating he should be granted full administrative relief.  The advisory official opined that:

	a.  The USAR claimed the applicant was not eligible for the SLRP and terminated his contract. The termination caused student loans to go into default and accrue interest and penalties.  The SLRP was subsequently reinstated but only after a substantial amount of interest, penalties, and fees had accumulated.

	b.  Aside from the significant increase in the amount owed on the loan, the applicant also paid over $6,500 in garnishments from his civilian pay.  None of these issues were the fault of the applicant.  The USAR is holding to the SLRP contract limit of $10,000 but the circumstances of this case require payment above that amount, which is not in violation of law or regulation.  

9.  In a response to the advisory opinion, dated 25 February 2014, the applicant stated:

	a.  He emphatically agrees with the advisory opinion that he be granted full administrative relief.  The substantial interest, penalties, and fees that accrued on his student loan have created a significant financial hardship for him and his family.  It is directly responsible for irreparable damage to his credit rating, suspended services for his special needs daughter, and his reluctantly having to borrow money for burial services for his mother-in-law.  All are due to wage garnishments that continue to this day.  

	b.  He strongly appeals to the Board to adopt the advisory recommendation as expeditiously as possible in order to afford him the opportunity to try and rebuild his current and future financial health.  He is the primary provider for his family and is enduring tremendous stress because of the financial hardship.

10.  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% of the original balance of the loan plus accrued interest not paid by the Department of Education, or $500 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.  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.  Each completed satisfactory year of service performed under this SLRP agreement establishes an anniversary date.  Any qualifying loan which is at least one year old may then be paid in accordance with the terms of this educational enlistment incentive.


DISCUSSION AND CONCLUSIONS:

1.  The evidence of record confirms that when the applicant reenlisted in the USAR on 12 March 2005, he agreed to serve for 6 years in MOS 44B and contracted for the SLRP in the amount of $10,000 as shown on the SLRP Addendum that he provided.  

2.  In accordance with regulatory guidance, his MOS changed to 44E upon his promotion to SSG and on 1 October 2009 the Army changed the MOS 44E to 91E.  Upon his promotion to SFC his MOS changed to 91W.  However, the changes in his MOS were part of his normal career progression and did not violate the terms of his SLRP Addendum.

3.  As stated by the advisory official, it is evident that administrative errors were committed time and time again in processing the applicant's request for payment of his student loans under the SLRP.  At first he was incorrectly told Reservists did not qualify for the SLRP, then he was incorrectly told MOS 44B did not qualify for the SLRP, and then numerous USAR officials did not recognize the fact the that his change in MOS was due to career progression and not the result of his SLRP Addendum being violated.  However, he should not be penalized for errors that occurred through no fault of his own.  He reenlisted in good faith and he continues to serve in the USAR today.  Only the incompetence of others denied him entitlement to the SLRP for over 9 years, resulting in a huge increase in his student debt from over $13,000 to over $21,000.

4.  As a matter of equity, his records should be corrected to show he executed a properly-constituted SLRP Addendum in the amount of $25,000 on 12 March 2005 and that the addendum was filed in his service records.  He should receive full administrative relief for payment of his authorized loans in accordance with SLRP regulatory guidance.

BOARD VOTE:

__x______  _x_______  _x____  GRANT FULL RELIEF 

________  ________  ________  GRANT PARTIAL RELIEF 

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION



BOARD DETERMINATION/RECOMMENDATION:

The Board determined the evidence presented is 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:

* showing an SLRP Addendum in the amount of $25,000 was properly executed on 12 March 2005, the addendum was witnessed by a service representative, the addendum contained a valid control number, and the addendum was filed in his service records
* paying him up to $25,000, less any monies he already received, for any verifiable, documented, and authorized loans, provided he submits supporting documents 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)                                         AR20140000942



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