IN THE CASE OF:	  

		BOARD DATE:	  22 October 2014

		DOCKET NUMBER:  AR20140015573 


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) incentive to include payment of his private loans which equals a total of $76,000.  He also requests the immediate payment of $50,000 toward his student loans.

2.  The applicant states, in effect:

	a.  He is having problems getting the Texas Army National Guard (TXARNG) to pay the incentive.  The incentives office at Camp Mabre demonstrated gross negligence in performing their duties.  This has caused his family huge repercussions.  Not receiving the incentive in a timely manner has put him in a huge financial hole that he cannot dig himself out of.  When he enlisted in the ARNG, he signed an 8-year enlistment contract and had loans that totaled over $50,000.  The accruing interest and fees associated with the loans has endured for almost 4 years and the balance has increased, exceeding $73,000. 

	b.  Even if the ARNG pays him the $50,000 incentive that he is entitled to receive under his contract it will not cover the interest that has accumulated due to non-payment of the loan over the course of the years.  This financial burden has forced him and his wife to live in poverty trying to facilitate the payments.  His wife is deployed and by breaking his contract the incentives department at Camp Mabre is guilty of pushing his family into undue hardship.  They are having trouble paying rent and the bills for her deployment costs abroad.


	c.  He cannot continue in this manner and needs immediate action to get the incentive he was promised.  He was told over and over the incentive payments were delayed due to changes in the policy, staff leaving, and the paperwork was not received.  He was also told to just simply “wait” for 3 years.  There is gross mismanagement in the incentives office that needs review.  He is requesting to be paid the full $50,000 as soon as possible against his student loans and that the cap be extended to $76,000 to cover the interest accrued due to non-payment and negligence by the incentives office.

	d.  His contract stated he had seven existing disbursed loans in the amount of $58,032.04 and the total amount of repayment for qualifying loan(s) would not exceed $50,000.  He submitted an exception to policy (ETP) to this.  Two of the loans included loans from the Federal loan servicer Sallie Mae which were included on his contract.  He initiated a Congressional review of the State incentives office not processing his incentive in 4 years.  The National Guard Bureau (NGB) responded unjustly and denied his ETP request to honor his contract and pay his incentive.  He was instructed to request that this Board correct his record so that he could obtain the incentive.

	e.  It is in the interest of justice to correct the action of the government not honoring his enlistment contract.  He signed an 8-year contract for the incentive instead of pursuing a commission.  This event has destroyed his life professionally, financially, and maritally.  He needs help by having his SLRP contract honored. 

3.  The applicant provides three letters, a memorandum, DD Form 4 (Enlistment/Reenlistment Document - Armed Forces of the United States) and Annex L to the DD Form 4 (Enlisted LRP (ELRP) Addendum), an undated form titled Unit Incentives Request for Information, and an ETP Coversheet dated 5 May 2014.

CONSIDERATION OF EVIDENCE:

1.  The applicant enlisted in the Florida ARNG (FLARNG) in the rank/grade of specialist/E-4 on 5 November 2010 for a period of 7 years and 43 weeks.

2.  The applicant provides and his records contain Annex L to DD Form 4, dated 5 November 2010, wherein it shows he acknowledged and agreed to the following:

* he was a non-prior service applicant who agreed to serve at least 6 years in the ARNG
* he had seven disbursed loans existing in the amount of $58,032.04, the total amount of repayment for qualifying loans would not exceed $50,000
* he may acquire new loans only at the time of extensions for not less than 6 years
* the Government will repay a designated portion of any outstanding loan(s) that he secured since 1 October 1975
* the loans 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 loans under Part E of such act (National Direct Student Loans)
* loans eligible for the ELRP are Stafford Loans (subsidized/unsubsidized), Federally Insured Student Loans, Perkins Loans, Auxiliary Loans to Assist Students, Supplemental Loans for Students, Consolidated Loan Program and (SMART), William D. Ford Federal Direct Loan Program
* State Student Loans are not eligible for the SLRP
* loans must be 1 year old or older on the first anniversary eligibility date to qualify for repayment
* loans that fall into default at any time after his enlistment would not be eligible for repayment
* the portion that may be repaid annually on any qualifying loan(s) would not exceed 15 percent (%) (not to exceed $7,500) of the total of all loan principals or $500.00, whichever is greater
* the annual payment will include interest as long as the combined principal and interest does not exceed the maximum authorized under law
* payment would be processed on the anniversary date of his enlistment for each satisfactory year served

3.  He entered active duty for training (ADT) on 15 February 2011.  He attended and successfully completed the Health Specialist Course and he was awarded military occupational specialty (MOS) 68W (Health Care Specialist).  He was honorably released from ADT on 16 September 2011 to the control of the FLARNG.

4.  On 12 January 2012, he voluntarily transferred to the TXARNG.

5.  The applicant provides a memorandum, dated 14 April 2014, wherein he requested an ETP and stated:

	a.  He was entitled to the SLRP incentive for student loans from Federal contracting loan servicing agencies but not "subsided from as well as Federal loans as not debunked" in his enlistment contract.  His SLRP Addendum stated he had seven disbursed loans existing in the amount of $58,032.04 and the total amount of repayment for qualifying loans would not exceed $50,000.
	b.  The seven loans were comprised of five Federal loans from the Department of Education and two private loans from Sallie Mae.  In accordance with his enlistment contract implicitly encompassing the outstanding balance of all loans…payment to lenders based on source eligibility should not be relevant as promised by his recruiter and the Military Entrance Processing Station contracting officials.

	c.  He was requesting his contract be honored.  He had already served more than 3 years and the delay resulted in excess of $15,000 in interest of the outstanding balance that was on his contract.

6.  He also provides a letter written to him, dated 25 August 2014, from the Office of Legislative Office, NGB, wherein the Chief, Congressional Inquiries stated:

	a.  The ARNG Personnel Programs, Manpower and Resources Division stated he enlisted in the ARNG on 5 November 2010 for a $50,000 SLRP incentive.  At the time, he had $26,006 in eligible Federal loans and $32,032 in private loans.  The amount of loans which may be repaid is 15% annually and therefore, his annual entitlement upon completion of a good year cannot exceed $3,900.90 per fiscal year (FY) for his Federal loans.  Per the Selected Reserve Incentive Policy that was in effect at the time he signed his contract, he was not entitled to repayment on his private loans.

	b.  He was eligible for the first annual payment towards his eligible loans on 5 November 2011 but the Texas State Incentive Office did not initiate his first payment until 13 April 2014.  Apparently, the office was not able to verify his Federal loans until he provided them the necessary documentation.  

	c.  His private loans were coded ineligible and he was notified by the TXARNG that payments could not be made on his private loans but they submitted an ETP on his behalf.  The TXARNG stated he was informed while the ETP was being processed he could still receive payment on his Federal loans; however, he elected to wait until the ETP determination was made before payments would be initiated on his Federal loans.

	d.  The ETP was denied on 8 August 2014 with instructions to the TXARNG not to authorize payments on his private loans but to authorize payment on his Federal loans.  The TXARNG was now able to initiate his first and second anniversary payments in the amount of $3,900.90 each (less taxes).  Once they do, his lender should receive payment within 10 business days.

	e.  If he believed and error or injustice still existed he could file a claim with the Army Board for Correction of Military Records.
7.  The SLRP provides for the repayment by the government of a designated portion of any qualifying outstanding student loan(s) secured after 1 October 1975.  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 that is at least 1 year old may then be paid in accordance with the terms of this educational enlistment incentive.

DISCUSSION AND CONCLUSIONS:

1.  The applicant contends he should be entitled to the SLRP incentive to include payment of his private loans in the amount of $76,000.  He also requests immediate payment of $50,000 toward his student loans.

2.  The evidence of record confirms the applicant enlisted in the FLARNG on 5 November 2010 for the SLRP incentive in the amount of $50,000.  Although his SLRP Addendum showed he had a total of $58,032.04 in student loans, only $26,000 of this amount were qualifying loans that were eligible for repayment under the SLRP.  His SLRP Addendum clearly stated payments under the SLRP would be for qualifying loans and specified what types of loans were eligible for repayment.  It also clearly stated the amount that would be repaid annually on any qualifying loans would not exceed 15% of the total amount of the loans.

3.  It is unclear whether the FLARNG processed his payment under the SLRP that was due on 5 November 2011.  He transferred to the TXARNG in January 2012 and it appears his annual payments under the SLRP were not processed in 2012 or 2013 as he had not provided the proper documentation to verify his qualifying loans.  The letter he provided from the NGB stated the TXARNG has since processed the $3,900 due for his first and second anniversary payments. 

4.  Notwithstanding his sincerity, there is no evidence and he did not provide any evidence that shows at the time he enlisted in the FLARNG he identified that over $32,000 of his student loans were private loans and he was told that these loans were eligible for repayment under the SLRP or that he would receive payment over the 15% annually towards his eligible loans.  Therefore, he is not entitled to the requested relief. 

5.  However, it appears there were delays in processing his annual payments under the SLRP that resulted in excess interest and penalties on his qualifying loans.  His SLRP Addendum also stated the annual payment will include interest as long as the combined principal and interest does not exceed the maximum authorized under law ($7,500).  Therefore, as a matter of equity, he should be paid all interest and penalties accrued on his qualifying student loans since 5 November 2011.

BOARD VOTE:

________  ________  ________  GRANT FULL RELIEF 

____x____  ___x____  ___x___  GRANT PARTIAL RELIEF 

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

BOARD DETERMINATION/RECOMMENDATION:

1.  The Board determined that the evidence presented was sufficient to warrant a recommendation for partial 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 paying him under the SLRP, in addition to the annual 15%, all interest and penalties accumulated on all authorized loans since 5 November 2011 out of Army National Guard funds, less any monies he already received for interest and penalties provided he submits supporting documents to DFAS.

2.  The Board further determined that the evidence presented was insufficient to warrant a portion of the requested relief.  As a result, the Board recommends denial of so much of the application that pertains to increasing his SLRP incentive to $76,000 to include his private loans and the immediate payment of $50,000.  



      _______ _   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)                                         AR20140015573



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ABCMR Record of Proceedings (cont)                                         AR20140015573



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