APPLICANT REQUESTS:  Repayment of a reenlistment bonus recouped by the Army.

APPLICANT STATES:  That he was told by the finance office at Fort Knox, KY that he could get out without repaying his reenlistment bonus.  He was lied to, it has hurt his credit and cost him over $1,200.

COUNSEL CONTENDS:  In effect, that the applicant reenlisted for 6 years in 1989.  At the time of his reenlistment, he was given one half of his total bonus, with the second half to be divided into 6 yearly payments.  After receiving only one of the yearly payments, the applicant opted for an early-out to continue his education in the field of nursing with the intent of returning to the Army after earning his nursing degree.  He was told he would not have to repay his bonus.  With this knowledge, he then immediately enrolled in a degree program in nursing that led to enrollment in the Army Nurse Candidate Training (ANCT) program.  This 2-year program offered him a bonus and a monthly stipend in return for 5 years of active duty.  He completed his degree in January 1996 and has been on active duty since that date.  In the meantime, the Defense Finance and Accounting Service (DFAS) has been recouping his reenlistment bonus.  Counsel believes the applicant falls into a situation that does not require recoupment, i.e., if the member is separated to permit acceptance of or entry into a program leading to a commission or warrant appointment in the same or another Service.  Counsel also requests the Board consider the issue of late fees and finance charges that are added to the amount due.  He simply cannot afford to pay those charges.

EVIDENCE OF RECORD:  The applicant’s military records show: 

He was born on 24 October 1968.  He enlisted in the Regular Army on 10 July 1986.  He was honorably discharged on 29 November 1989 for the purpose of immediate reenlistment on 30 November 1989 for 6 years.  He applied for early release under the Fiscal Year (FY) 1992 Early Transition Program and separated on 2 February 1992.  His separation designator code (SPD) was LCC, involuntary release from active duty or transfer, reduction in force.  He was appointed a 2d Lieutenant in the Army Nurse Corps on 6 February 1996 and is currently a 1st Lieutenant on active duty.

Headquarters, Department of the Army Message 070001Z January 1992, which announced the FY 1992 Early Transition Program, clearly stated that the servicing Finance and Accounting Office will not recoup the unearned portion of enlistment/reenlistment bonuses for soldiers separated three months or less before their expiration term of service (ETS) but that recoupment is required by law when voluntary separation occurs more than three months before ETS.

Per phone conversation with DFAS-Denver, Debt Collection/Claims, the applicant appears to owe a current debt of $2,261.79 and is repaying that debt at $92.40 a month.  It appears that interest and penalty charges have been applied in the past.

DISCUSSION:  Considering all the evidence, allegations, and information presented by the applicant, together with the evidence of record, applicable law and regulations, it is concluded:

1.  In order to justify correction of a military record the applicant must show to the satisfaction of the Board, or it must otherwise satisfactorily appear, that the record is in error or unjust.  The applicant has failed to submit evidence that would satisfy the aforementioned requirement.

2.  The applicant does not state who at the Fort Knox Finance Office told him he did not have to pay back his reenlistment bonus.  In any case, as a junior      non-commissioned officer it was his responsibility to inform himself of all requirements outlined in the FY 1992 Early Transition Program message before making the decision to request early separation.

3.  The applicant did not request separation to enter a program that would lead to a commission or warrant appointment, which would have given him an SPD of either KGM or KGN (voluntary discharge to accept commission or warrant in the Army or in another service).  He took the opportunity to request an early separation under a Department of the Army program designed to reduce the force to continue his education.  It was not until two years later, in his junior year, that he entered the ANCT program.  He did not meet the requirement that would have precluded recoupment of his reenlistment bonus.

4.  The applicant has not shown how the repayment of this debt, at the rate of $92.40 a month for a debt that became due in 1992, is causing him a hardship.

5.  In view of the foregoing, there is no basis for granting the applicant's request.

DETERMINATION:  The applicant has failed to submit sufficient relevant evidence to demonstrate the existence of probable error or injustice.

BOARD VOTE:

                       GRANT

                       GRANT FORMAL HEARING

                       DENY APPLICATION

                                Loren G. Harrell
					 	Director