IN THE CASE OF:	   

		BOARD DATE:	  7 May 2015

		DOCKET NUMBER:  AR20140015419 


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, payment of $4,068.16 for unpaid portions of student loans under the Loan Repayment Program (LRP).

2.  The applicant states:

	a.  He was never issued an LRP Addendum.  He is trying to set up his LRP and is being told he cannot because he doesn't have all the documentation.

	b.  The LRP made one payment to his loan companies, but now there is no record of him being in the LRP.

	c.  He has a DA Form 3286 (Statement for Enlistment, U.S. Army Enlistment Program, U.S. Army Delayed Enlistment Program) showing he signed up for the SLRP and he gave up his Montgomery GI Bill rights.  

3.  The applicant provides his DA Form 3286.

CONSIDERATION OF EVIDENCE:

1.  The applicant enlisted in the U.S. Army Reserve (USAR) on 5 November 2009 under the Delayed Entry Program (DEP).  His DA Form 3286 shows he enlisted for the LRP.  

2.  He was discharged from the DEP and he enlisted in the Regular Army on 
27 January 2010 for 3 years and 16 weeks.  On 18 May 2013, he was honorably released from active duty.

3.  In the processing of this case, an advisory opinion was obtained from the Reserve Incentives Program Manager, Department of the Army Office of the Deputy Chief of Staff, G-1.  The opinion states:

	a.  The applicant entered active duty on 27 January 2010 and contracted for the U.S. Army LRP.  Under ideal circumstances, the Army will repay up to one-third of the total remaining original unpaid principal, less taxes, on all qualifying loans after a Soldier completes each year of active duty.

	b.  The Army can only pay on the original unpaid principal balance, less taxes, that an individual borrowed.  The applicant's loan information was received from Nelnet in March 2013 and Sallie Mae Department of Education in April 2013.  Since the loan information was received more than 3 years after the applicant entered active duty, a lump sum payment, less taxes, for all 3 years was authorized.

	c.  The total remaining verified original unpaid principal by Nelnet was $8,831.01 and Sallie Mae Department of Education was $3,725.00, for a total of $12,556.02.  Army LRP records indicate the less-tax amount disbursed to Nelnet was $5,969.76 on 1 May 2013 and Sallie Mae Department of Education was $2,518.10 on 24 May 2013, for a total of $8,487.86.  The remaining balance at the time was $4,068.16. 

	d.  The Army does not assume the Army LRP participant's loan.  The participant remains responsible for the status of the loan.  Regulatory guidance (U. S. Army Recruiting Command Regulation 621-1 (Montgomery GI Bill, Army College Fund, and LRP) and Army Regulation 621-202 (Army Educational Incentives and Entitlements)) precludes the authorization of payments toward interest and the reimbursement of payments made.  

	e.  Since the applicant received the total amount of the original loan balances ($8,487.86) in a lump sum payment in May 2013, the remaining balance on his loans appears to be accrued interest of $4,068.16.  

	f.  Recommend denial of the applicant's request since the Army LRP prohibits payments toward interest. 
	
4.  A copy of the advisory opinion was provided to the applicant to provide comment or rebuttal.  He did not respond.
5.  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 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.
  
6.  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.

7.  Paragraph 3-6 (Entitlements) of Army Regulation 621-202 states the Army will not pay more than the outstanding principal amount borrowed or the principal balance remaining when the Soldier enters active duty.

DISCUSSION AND CONCLUSIONS:

1.  The evidence confirms:

* the total original unpaid principal on the applicant's two student loans was $12,556.02
* he received the total amount of the original loan balances ($8,487.86) in a lump sum payment in May 2013
* the remaining balance on his loans appears to be accrued interest of $4,068.16  

2.  Since the regulatory guidance prohibits LRP payments toward interest, there is no basis for granting the 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)                                         AR20140015419





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ABCMR Record of Proceedings (cont)                                         AR20140015419



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