IN THE CASE OF:	  

		BOARD DATE:	  30 October 2014

		DOCKET NUMBER:  AR20140014064 


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 payment of $50,000 in Federal Parent Loans for Undergraduate Students (PLUS) loans under the Student Loan Repayment Program (SLRP).

2.  The applicant states he was specifically promised that his PLUS loans would be paid.  No particular type of loan was excluded.  He only enlisted in the Army National Guard after verifying with the recruiter and the state incentive manager that the PLUS loans would be covered.  After he enlisted, the National Guard Bureau (NGB) informed them the PLUS loans did not qualify.  The Hawaii Army National Guard (HIARNG) asked for an exception to policy.  The NGB denied it because they said U.S. Code, Title 10 (10 USC) allowed only loans made directly to students, not their parents.

3.  The applicant provides copies of – 

* his DD Form 4 (Enlistment/Reenlistment Document)
* his NGB Form 600-7-5-R-E (Enlisted LRP Addendum to DD Form 4)
* his father's National Student Loan Data System statement
* Sallie Mae Disbursement sheet
* his father's promissory note
* ARNG GSE 11-015 Memorandum to states on SLRP requirements, dated 4 March 2011
* HIARNG notice to applicant of PLUS loan denial, dated 12 February 2013
* HIARNG  request for an exception to policy
* recruiter's statement on exception to policy request
* 10 USC, section 16301
* NGB denial of exception to policy, dated 1 October 2013
* NGB letter to Congressman
* printout of My Army Benefits website page on the SLRP

CONSIDERATION OF EVIDENCE:

1.  On 29 July 2011, the applicant enlisted in the HIARNG for 6 years.  He and the recruiter executed the NGB Form 7-5-R-E indicating that the applicant would receive $50,000 in student loan repayment.

2.  A 12 February 2013 HIARNG memorandum from the state enlistment incentive manager informed the applicant that his SLRP benefit was terminated because the SLRP loans were not in his name.  He was advised that he could apply for an exception to policy.

3.  The HIARNG state personnel officer, in a 28 February 2013 memorandum to the NGB, explained that the applicant's SLRP loans had been mistakenly included in his SLRP.  He noted that the NGB's 4 March 2011 did not make it clear that PLUS loan were excluded.  He also pointed out that the applicant, "had accepted an incentive offer made by the HIARNG…and…fulfilled his obligations…"  He observed that, "withholding any scheduled payment of this incentive would be contrary to equity and good conscience, and against the best interests of the Army.  The HIARNG requested an exception to policy.

4.  A 1 October 2013 memorandum by the NGB denied the request for the exception to policy in the applicant's case because the loans were in the father's name, not the Soldier's.  Payment of the SLRP in this situation was held to be a violation of 10 USC, section 16301, paragraph (a)(2).  No recoupment was necessary since no payment had been made.

5.  The printout of the My Army Benefits website page on SLRP that the applicant submitted in support of his case specifically states that PLUS loans are included.  The page shows a review date of 25 June 2013.

6.  Title 10, USC, section 16301 states in pertinent part, "The Secretary of Defense may repay loans described in paragraph (1) in the case of any person 
for service performed as a member of the Selected Reserve of the Ready Reserve of an armed force in a reserve component and in an officer program or military specialty specified by the Secretary of Defense.  The Secretary may repay such a loan only if the person to whom the loan was made performed such service after the loan was made.

DISCUSSION AND CONCLUSIONS:

1.  The available evidence shows the HIARNG Incentive Manager determined that the applicant had $50,000 worth of qualifying loans that were approved for the SLRP payment.  

2.  The applicable section of Title 10, section 16301 provides that the SLRP can only be used to repay loans made to the individual who serves.  Thus, the PLUS loans were not payable under the SLRP.

3.  He was not responsible for verifying what loans qualified for payment under the SLRP.  The record shows the applicant's enlistment was a response to an offer made by the HIARNG.  The SLRP portion of the Army's recruiting website still had erroneous information about the PLUS loans 3 months after the applicant had been informed that his loans had been disallowed.

4.  The applicant did nothing wrong.  He is entitled to receive the benefits promised.  Accordingly, his records should be corrected to show he was properly authorized to receive those benefits.  To do otherwise is an injustice.

5.  In view of the foregoing findings and conclusions, it would be appropriate to rectify this injustice by correcting the applicant’s records as recommended below.

6.  Title 10, USC, 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.”

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 and State Army National Guard records of the individual concerned be corrected by: 

	a.  amending his DD Form 4 to include the statement, “If a student loan is accepted by the officials processing you for enlistment as payable under the SLRP, and the government fails to verify that all student loans accepted actually are eligible under the Higher Education Act of 1965, and such failure results in nonpayment of the loan by the SLRP, 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.  directing that in accordance with Title 10, U.S. Code, section 1552, the Defense Finance and Accounting Service make payment to the applicant for the total amount of loans not covered under the SLRP, that were listed in his enlistment records, up to the amount of $50,000.00; the applicant should provide evidence to the Defense Finance and Accounting Service to show the total amount of the PLUS loan, to which he is entitled as a result of this correction.



      _______ _   __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)                                         AR20140014064





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