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ARMY | DRB | CY2006 | 20060000862
Original file (20060000862.doc) Auto-classification: Approved



                            RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:        30 March 2006
      DOCKET NUMBER:  AR20060000862


      I certify that hereinafter is recorded the true and complete record
of the proceedings of the Army Board for Correction of Military Records in
the case of the above-named individual.

|     |Mr. Carl W. S. Chun               |     |Director             |
|     |Mrs. Nancy L. Amos                |     |Analyst              |


      The following members, a quorum, were present:

|     |Mr. John T. Meixell               |     |Chairperson          |
|     |Ms. Carol A. Kornhoff             |     |Member               |
|     |Mr. Rowland C. Heflin             |     |Member               |

      The Board considered the following evidence:

      Exhibit A - Application for correction of military records.

      Exhibit B - Military Personnel Records (including advisory opinion,
if any).

THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE:

1.  The applicant requests, in effect, that his Signature Student Loan be
paid off as promised by his recruiter.

2.  The applicant states his recruiter told him that all his student loans
would be paid by the military.  She printed off the list of loans directly
from SallieMae's website and verified that all loans were covered.

3.  The applicant provides his Signature Student Loan promissory note and a
loan printout from SallieMae.

CONSIDERATION OF EVIDENCE:

1.  The applicant is currently serving in Operation Iraqi Freedom.

2.  The applicant entered the Delayed Enlistment Program on 21 January
2005.  His Statement for Enlistment United States Army Enlistment Program,
U. S. Army Delayed Enlistment Program shows he enlisted for the Loan
Repayment Program (LRP), to a maximum of $65,000, in addition to other
incentives.  On this form, he acknowledged that under the LRP the
Government would repay a designated portion of any loan he incurred that
was made, insured or guaranteed under Part B of the Higher Education Act of
1965 or any loan under Part E of such act after 1 October 1975 and before
he enlisted into the Regular Army.

3.  The applicant provided a SallieMae printout, which was faxed to the San
Juan, Puerto Rico Military Entrance Processing Station (MEPS) on 31 January
2005, which showed he had eight Stafford Loans and one Signature Student
Loan for a principal balance of $65,500.00.

4.  None of the applicant's enlistment documents (to include his DD Form
1966 (Record of Military Processing - Armed Forces of the United States))
identified what student loans he had.

5.  The applicant enlisted in the Regular Army on 3 February 2005.

6.  On 16 September 2005, the U. S. Army Human Resources Command (USAHRC)
informed the applicant his Signature Student Loan in the amount of
$10,000.00 was not made, insured, or guaranteed under Title IV Part B, D,
or E of the Higher Education Act and was therefore ineligible for
repayment.

7.  On 23 March 2006, the Education Incentives Branch, USAHRC informed the
staff of the Board the applicant had qualifying loans in the amount of
$55,500.00.
8.  The Loan Repayment Program 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 of 1965, 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.

9.  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.

10.  Army Regulation 601-210 (Regular Army and Army Reserve Enlistment
Program) prescribes eligibility criteria governing the enlistment of
persons, with or without prior service, into the Regular Army and the U. S.
Army Reserve.  Chapter 9 (Enlistment Programs/Options) states that these
programs/options are designed to merge valid Army requirements with
personal desires.

11.  Army Regulation 601-210, Table 9-4 of the version in effect at the
time, contained guidance on enlistment option program 9C (Bonus/Army
College Fund/Loan Repayment Program).  Table 9-4 provided program
processing procedures that required specific counseling and administrative
actions in connection with processing members enlisting with the LRP
incentive.  In addition, Line 7 of Table 9-4 required the guidance
counselor to verify that the applicant had qualifying loans if enlisting
for the LRP, to advise the applicant if any loan was not eligible, and to
have the applicant acknowledge same in the remarks section of the DD Form
1966 series.

12.  Title 10, U. S. Code, 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.”

DISCUSSION AND CONCLUSIONS:

1.  The evidence of record shows the applicant enlisted for the LRP
incentive up to a maximum amount of $65,000.00.  He had obtained eight
Stafford Loans (in the total amount of $55,500.00) and one Signature
Student Loan (in the amount of $10,000.00) prior to his entry on active
duty, and they were not in default prior to his entry on active duty.

2.  The applicant states his recruiter assured him all his student loans
were eligible for repayment and included a SallieMae printout, which listed
all nine of his loans, as evidence.  It is noted that no entry was made in
the remarks section of his DD Form 1966 reflecting the ineligibility of the
Signature Student Loan for repayment as required by regulation.  Any
reasonable doubt concerning counseling the applicant received from his
recruiter or MEPS officials on the eligibility of his Signature Student
Loan should be resolved in the applicant's favor.

3.  In the interest of justice and equity, it would be appropriate to
provide the applicant the LRP benefits outlined in his enlistment contract.
 However, his contract stated he would be eligible for repayment only up to
$65,000.00.  Repayment of the Signature Student Loan in its total amount of
$10,000.00 would exceed the maximum repayment he is authorized by $500.00.
Repayment of $9,500.00 of the Signature Student Loan would be equitable.

4.  The applicant is required to complete 3 years of active duty to obtain
the full benefits of the LRP.  He enlisted in the Regular Army in February
2005.  The Defense Finance and Accounting Service will be requested to
establish a debt should he not serve the required active duty.

5.  The applicant’s military records may be corrected to show his
enlistment contract was amended to include the sentence “If a student loan
is accepted by the officials processing you for enlistment as payable under
the LRP and the government fails to verify that the student loan accepted
actually is eligible under the Higher Education Act of 1965 and such
failure results in nonpayment of the loan by the LRP or the repayment or
default of the loan, 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.”  This would allow the Board to invoke that provision
and pay him the amount his lending institutions would have been paid under
the LRP.
BOARD VOTE:

________  ________  ________  GRANT FULL RELIEF

__jtm___  __cak___  __rch___  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 the applicant's enlistment contract be amended to include
the sentence “If a student loan is accepted by the officials processing you
for enlistment as payable under the LRP and the government fails to verify
that the student loan accepted actually is eligible under the Higher
Education Act of 1965 and such failure results in nonpayment of the loan by
the LRP or the repayment or default of the loan, 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.”

2.  That as a result of the foregoing correction the Defense Finance and
Accounting Service shall remit payment to the applicant $9,500.00 of his
Signature Student Loan to which he is entitled as a result of this
correction and advise him if he does not serve the required active duty a
debt will be established.

3.  The Board further determined that the evidence presented is
insufficient to warrant a portion of the requested relief.  As a result,
the Board recommends denial of $500.00 that would exceed the maximum
repayment of the $65,000.00 ceiling authorized by the Loan Repayment
Program.




                                  __John T. Meixell_____
                                            CHAIRPERSON



                                    INDEX

|CASE ID                 |AR20060000862                           |
|SUFFIX                  |                                        |
|RECON                   |                                        |
|DATE BOARDED            |20060330                                |
|TYPE OF DISCHARGE       |                                        |
|DATE OF DISCHARGE       |                                        |
|DISCHARGE AUTHORITY     |                                        |
|DISCHARGE REASON        |                                        |
|BOARD DECISION          |GRANT                                   |
|REVIEW AUTHORITY        |Mr. Schneider                           |
|ISSUES         1.       |112.12                                  |
|2.                      |                                        |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |


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