IN THE CASE OF:
BOARD DATE: 7 July 2015
DOCKET NUMBER: AR20150004845
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 that he be granted an exception to policy to retain his $20,000 Student Loan Repayment Plan (SLRP) incentive and to reimburse him $1,500.00 retrospectively for benefits not paid at the $20,000.00 level.
2. The applicant states that he reenlisted for a period of 6 years on 9 September 2012 with an effective date of 30 July 2013 and signed an SLRP addendum incentive for $20,000. At the time of his reenlistment he had the option of obtaining a private student loan at a 2 percent interest rate; however, the loan originator did not qualify for payment under the SLRP so he accepted a Federal Stafford Loan for $20,000 at 6.80 percent interest because it qualified for repayment under the SLRP. On 26 June 2014, several weeks after submitting his application for student loan repayment, he received notification that he was not authorized more than a $10,000 SLRP incentive, that he had been paid double what he was actually authorized, and that unless he obtained an exception to policy, recoupment action would be initiated. Accordingly, his records on the Web - enabled Education System (WEBS) were changed to reflect only a $10,000 SLRP entitlement. He acted honorably and has fulfilled his part of the contract and asks that the Army do likewise. He states that if his $20,000 incentive is not restored, it will impose a huge financial burden on him and his family. He also requests reimbursement of $1,500.00 for benefits not paid at the $20,000 level. He implores the Board to grant his request based on the injustice he has suffered.
3. The applicant provides a copy of his request for an exception to policy, his enlistment and reenlistment contracts, DD Forms 214 (Certificate of Release or Discharge from Active Duty) and evaluation reports.
CONSIDERATION OF EVIDENCE:
1. The applicant was serving as a sergeant in a U.S. Army Reserve (USAR) troop program unit in military occupational specialty (MOS) 42R (Army Band Person) when he reenlisted on 9 September 2012 for a period of 6 years and a $20,000 SLRP incentive to be effective 30 July 2013, the day after his current expiration of term of service (ETS). His reenlistment contract and DA Form 5261-4 (Student Loan Repayment Program Addendum) were both signed the same date by the applicant and Army Reserve Career Counselor.
2. On 26 June 2014, the applicant, through an email from the USAR Command (USARC) Incentives Branch, was notified his MOS was only authorized a $10,000 SLRP incentive, not the $20,000 he initially contracted for in 2012. He was advised to submit an exception to policy through his chain of command to USARC.
3. On 15 July 2014, the applicant submitted a request for an exception to policy and received favorable support from his entire chain to include his regional support command commanding general. In the request for exception to policy it is noted the applicant signed the SLRP addendum in good faith without access to the Fiscal Year (FY) 2012 Selected Reserve Incentive Program (SRIP) list. He relied in good faith on the Army Reserve career counselor and senior authorizing officials and should not be penalized for their administrative errors.
4. On 25 February 2015, a USARC official denied his request for an exception to policy based on the fact that his MOS was authorized a $10,000 SLRP incentive for the FY12 SRIP. The official opines, "Although the Army Reserve Careers Division erroneously offered the higher amount, we [USARC] are obligated to adhere to the FY12 SRIP list." He was advised to apply to this Board.
DISCUSSION AND CONCLUSIONS:
1. While it is apparent that the career counselor incorrectly advised the applicant that he was entitled to a $20,000 SLRP incentive and prepared his bonus addendum to reflect the same, the FY12 SRIP guidance at the time only authorized a $10,000 SLRP incentive for his MOS.
2. However, it is also evident that the applicant, to his detriment, relied on the career counselors incorrect guidance and secured a $20,000 Federal Stafford Loan at a higher interest rate so as to qualify for repayment under the SLRP.
3. While it is understood that the loans secured by individuals are the responsibility of the individual Soldier, the Army has an obligation to properly inform Soldiers of their entitlements so that they can make informed decisions regarding their financial matters.
4. It is also understood that it is not the Armys intent to cause Soldiers to incur debts that they otherwise would not incur had they been properly informed. For this reason and as a matter of equity, it is only fair to grant the applicant an exception to policy to retain his $20,000 SLRP incentive as indicated on his SLRP addendum dated 9 September 2012. In addition, all recoupment actions pertaining to overpayment of the SLRP should cease and any money that may have been recouped should be refunded.
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 records of the individual concerned be corrected by showing that the applicant has been granted an exception to policy to retain his $20,000 SLRP incentive with entitlement for payment in accordance with the original contract addendum, ceasing SLRP recoupment actions, and refunding any money that may have been previously recouped based on the initial denial of the exception to policy.
_______ _ __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) AR20150004845
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