IN THE CASE OF:	  

		BOARD DATE:	  31 March 2015

		DOCKET NUMBER:  AR20150003413 


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, correction of his record to show he was eligible for the Student Loan Repayment Program (SLRP) when he enlisted in the Nevada Army National Guard (NVARNG) on 31 March 2009.

2.  He states, in effect:

	a.  He contracted for the SLRP incentive when he enlisted and he had two outstanding Sallie Mae student loans totaling $10,000:  one for $2,000 and one for $8,000.  These loans were reviewed and discussed at length with the NVARNG recruiter.  The loans were approved for the SLRP and a control number was issued consistent with all incentive programs.  

   b.  The repayment of his student loan debt was a major factor in his decision to enlist the NVARNG.  
   
   c.  On his first anniversary year he became eligible for payment of his first installment.  He filed for it and it was approved and paid to Sallie Mae.  However, every subsequent year for the past 5 years, he has been denied, even though it was approved prior to his enlistment.  Later, he was told the reason his loans were not eligible was because they were "private" loans.  Additionally, he was told that private loans do not qualify because the federal government did not issue them; they are typically disbursed to the student directly.  However, his private loans through Sallie Mae were disbursed to his school (University of Phoenix) directly and not to him.  Further, he has obtained a letter from Sallie Mae stating such.  
   d.  Finally, he states that his student loans are legitimate and were to be paid as part of his enlistment agreement and he now wants the government to honor the agreement.  There is no way he could have known as an enlisting Soldier that his private student loans were un-payable pursuant to his SLRP contract.  

3.  He provides:

* Exception to Policy (ETP) request, dated 20 March 2014
* National Guard Bureau (NGB) ETP denial letter, dated 5 November 2014
* SLRP Addendum
* Enlistment Contract
* SLRP lender documents
* Sallie Mae letter
* Email

CONSIDERATION OF EVIDENCE:

1.  On 31 March 2009, the applicant applied for entry into the NVARNG.  Since he had two student loans, totaling $10,000, he was offered the SLRP as an incentive to join the NVARNG.  As part of the process, he completed an Annex L (SLRP Addendum) to DD Form 4 (Enlistment/Reenlistment Document), indicating he agreed to the terms of the SLRP contract. 
   
2.  An NGB Form 600-7-5-R-E (SLRP Addendum) signed by the applicant and a service representative on 31 March 2009 shows the applicant acknowledged that:

* he met the SLRP eligibility criteria as a prior service applicant enlisting in Unit Identification Code WY7M90
* he was duty MOS qualified for the position for which he was enlisting
* he was enlisting for a 6-year period
* he had two disbursed loans in the amount of $10,000 and the total amount of repayment for qualifying loans would not exceed $50,000  
* any break in service or period of extension less than six (6) years would permanently terminate the SLRP agreement
* he would furnish his unit commander or his representative all of his promissory notes and proof of disbursement upon reenlistment/extension
* loans would be paid starting on his first anniversary eligibility date
   
3.  Section III - Entitlements and Payments of the SLRP Addendum states the Government will repay a designated portion of any outstanding loan(s) that I have secured since 1 October 1975.  The 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 as (National Direct Student Loans).  Loans eligible for the Student Loan Repayment Program are: Stafford Loans (subsidized), Stafford Loans (unsubsidized), Federally Insured Student Loans, Perkins Loans, Auxillary Loans to Assist Students, Supplemental Loans for Students, Consolidated Loan Program, and William D. Ford Federal Direct Loan Program. (State Student Loans are not eligible for the Student Loan Repayment Program).

4.  The applicant agreed to the terms of the contract and accepted the SLRP incentive.  

5.  Although the Higher Education Act of 1965 lists loans that are authorized payment and that State Student Loans are not eligible for SLRP, they do not state that private loans are not eligible under the SLRP.

6.  The applicant enlisted in the NVARNG on 31 March 2009, he completed the initial training requirement and he was awarded military occupational specialty (MOS) 92A (Automated Logistical Specialist). 
 
7.  On 31 October 2009, the applicant submitted a DD Form 2475 (Department of Defense Educational Loan Repayment Program Annual Application).  In his application, he listed the original two private Sallie Mae loans.  On 31 March 2010, his first payment was approved and disbursed upon his first anniversary year.

8.  In the following year and subsequent years, the applicant was denied any future SLRP payments due to the loans being un-qualifying since they were private student loans.  He provides a series of emails exchanged between him and the Battalion Career Counselor regarding his eligibility for the SLRP incentive and subsequent request for an ETP for payment of his loans. 

9.  On 13 October 2011, he was honorably discharged to accept an appointment as a commissioned officer.  The NGB Form 22 (Report of Separation and Record of Service) issued at that time shows he held MOS 92A.  Effective 
14 October 2011, he was appointed as a second lieutenant (2LT)/O-1 in the NVARNG.  

10.  On 20 March 2014, he submitted an ETP request to the NGB.  However, on 
5 November 2014, the NGB denied his request for an ETP.  They cited the ARNG Selected Reserve Incentive Program Policy Guidance for Fiscal Year 2007 (Policy Number 07-06 with updates), effective 1 March 2009, that states the applicant did not have an eligible or qualifying student loan to be paid under the SLRP incentive.  
11.  The National Guard offers the SLRP incentives and it is available to Soldiers and officer candidates (09S) who have one or more qualifying and disbursed Title IV Federal loan(s).

* The loans must be listed on the Department of Education National Student Loan Data System aid summary website
* Federal Parent Loans for Undergraduate Students incurred for individual use only are eligible for repayment
* State and private loans are not eligible for repayment under the SLRP
12.  Title 10, U.S. Code, section 1552, the law which governs the operation of the Board, states that “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.”

DISCUSSION AND CONCLUSIONS:

1.  The applicant executed a 6-year enlistment in the NVARNG on 
31 March 2009.  He completed a SLRP addendum and disclosed/listed two private loans acquired prior to enlistment.  

2.  As noted by the NGB, the contested loan is not ensured under the Higher Education Act of 1965 and does not fall within that Act.  Therefore, the SLRP does not allow repayment of the applicant's loan.

3.  The applicant’s loan did not meet the criteria established by law; however, this is not the overriding factor in this case, given the equity considerations and the resultant injustice.  It is conceivable that since the applicant only had two loans and both were private loans with Sallie Mae, that his recruiter told him that his loans qualified under SLRP, since his first SLRP payment was paid by the government, even though it has now been determined that this information is incorrect.

4.  Notwithstanding the above, there is no evidence to indicate that, prior to enlisting in the military, the applicant was ever clearly told his loans were not repayable under the SLRP.  Additionally, the applicant submitted a statement from Sallie Mae which verified that his private loans were sent directly to the school and not to the applicant.  

5.  The applicant enlisted in good faith believing the Army would honor its commitment and pay his student loans.  The applicant subsequently accepted a commission in the NVARNG as a 2LT/O-1.  The applicant is keeping his commitment and honorably serving his country.  

BOARD VOTE:

___x____  ___x____  ___x____  GRANT FULL RELIEF 

________  ________  ________  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 relief.  As a result, the Board recommends that the applicant’s NGB Form 600-7-5-R-E and Statement of Understanding be amended to include the sentence, “If a student loan is accepted by the official processing you for enlistment as payable under the SLRP, and the Government fails to verify that the accepted student loan actually is eligible for payment under the Higher Education Act of 1965, and such failure results in nonpayment of the loan, or the repayment or default of the loan, the Army Board for Correction of Military Records may, at its sole discretion, pay the loan in accordance with Title 10, U.S. Code, section 1552.”  

2.  As a result of the foregoing correction the Defense Finance and Accounting Service (DFAS) shall remit payment to the applicant of the total amount of his Sallie Mae Signature student loans, to which he is entitled as a result of this 
correction.  If required, the applicant will submit the appropriate evidence (promissory notes, etc.) 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)                                         AR20140007510



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ABCMR Record of Proceedings (cont)                                         AR20150003413



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