PROCEEDINGS

	IN THE CASE OF:      

	BOARD DATE:           19 April 2000                  
	DOCKET NUMBER:   AR1999026822

	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. Kenneth H. Aucock		Analyst	

  The following members, a quorum, were present:

	Mr. James P. Huber		Chairperson	
	Mr. Elzey J. Arledge, Jr.		Member	
	Mr. Van B. Cunningham		Member	

	The applicant and counsel if any, did not appear before the Board.

	The Board considered the following evidence:

	Exhibit A - Application for correction of military 
                records
	Exhibit B - Military Personnel Records (including
	            advisory opinion, if any)

FINDINGS:

1.  The applicant has exhausted or the Board has waived the requirement for exhaustion of all administrative remedies afforded by existing law or regulations.

2.  The applicant requests that the order transferring him to the Army Reserve Control Group (Reinforcement) be amended to show that he was transferred on 11 June 1994 instead of 28 May 1994 in order to receive entitlement for a student loan repayment program (SLRP) incentive. 

3.  The applicant states that he was transferred early because his final drill date occurred after his transfer date to the control group; therefore, he was released prior to the end of the entitlement year.  Had he known the consequences, he would have waited until 11 June 1994 to volunteer for transfer to the control group.

4.  The applicant’s military records show that he enlisted in the Army Reserve for 8 years on 8 June 1988.  The enlistment option that he selected shows that he agreed to be a member of a troop program unit for 6 years, and a member of the Individual Ready Reserve (IRR) for the remainder of his 8 year obligation.      

5.  A Student Loan Repayment Program Addendum (DA Form 5261-4-R) to his enlistment contract shows that the applicant agreed to certain conditions in order to be eligible for entitlements under SLRP.  He indicated that he understood that the loan repayment under the SLRP would apply to him as follows:  (1) the government would repay a designated portion of any outstanding certain loans he had secured since 1 October 1975, (2) qualifying educational loans made by him while a member of the selected Reserve during his contractual terms of service would also be repaid, (3) the amount of the loans (not to exceed $10,000 when totaled) that could be repaid was 15 percent (a maximum of $1500) or $500 whichever was greater, plus interest.  The loan would be paid for each year of satisfactory service performed during the contractual commitment and after the loan or loans were made.  However, the maximum number of payments made on the anniversary date of the agreement would be six, and (4) repayment of any loans would be made after each complete year of satisfactory service that he performed beginning with the contractual commitment.

6.  The applicant also indicated that he understood that entitlement under the SLRP would be terminated should any of various conditions occur before the fulfillment of his selected Reserve contractual agreement, one of which was separation from the selected Reserve as an enlisted person for any reason except when separated for a period of nonavailability authorized a suspension.
The applicant signed the addendum on 8 June 1988.

7.  The applicant was reassigned from his unit, the 312th Evacuation Hospital in Greensboro, North Carolina, to the Army Reserve Control Group (Reinforcement) on 28 May 1994.  He was discharged from the Army Reserve on 11 June 1996.

8.   A 12 January 1999 memorandum indicates that the applicant’s SLRP incentive was terminated since he separated prior to entitlement year 1994 [the anniversary date of 8 June), and no more payments could be made on his loan.

9.  Army Regulation 135-7 provides policies and procedures for the administration of Reserve incentive programs.  Chapter 5.1 gives guidance for the administration of the SLRP, and states in pertinent part that public               law 99-145, section 671(a)(1) authorizes student loan repayment for qualified Selected Reserve enlisted personnel on signing a contractual agreement for a specified term of service in the Selected Reserve and executing a                      DA Form 5261-4-R.  A soldier will not be eligible for any initial or subsequent loan repayments until he has reached the anniversary date of the Selected Reserve contract for SLRP participation, among other reasons.  Entitlement to SLRP will stop if the soldier separates from the Selected Reserve as an enlisted person for any reason, including enlistment or voluntary recall into the active forces. 

CONCLUSIONS:

1.  The applicant’s contractual agreement stipulated that his entitlement to the SLRP incentive was contingent upon his membership and satisfactory participation in the Selected Reserve, and that any loans would not be paid until he reached the anniversary date of his Selected Reserve contract.  The anniversary date of his contract was 8 June.  He transferred to the Army Reserve Control Group (Reinforcement) on 28 May 1994; consequently, he was not entitled to any further payments on his loan.

2.  The applicant’s contention, however, that he would not have voluntarily transferred had he known that payments on his loan would be terminated is logical.  It makes no sense for him to do what he did, when, by remaining a member of his troop program unit for another two weeks, payment on his loan would continue.  The applicant essentially lived up to the terms of his contract. He made a mistake, but by the same token, he should have been advised of the consequences of his action.  

3.  Therefore, the applicant’s order transferring him to the Army Reserve Control Group (Reinforcement) should be amended to show that the effective date of the transfer was 11 June 1994 instead of 28 May 1994. 

4.  In view of the foregoing, the applicant’s records should be corrected as recommended below.

RECOMMENDATION:

That all of the Department of the Army records related to this case be corrected by amending the 120th Army Reserve Command orders 037-051, dated              28 May 1994, to show that the effective date of the applicant’s transfer to the Army Reserve Control Group (Reinforcement) is 11 June 1994 instead of          28 May 1994. 

BOARD VOTE:  

___eja__  ___vbc___  ___jph__  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

		______________________
		        CHAIRPERSON

INDEX

CASE ID	AR1999026822	
SUFFIX		
RECON	YYYYMMDD	
DATE BOARDED	20000419	
TYPE OF DISCHARGE	(HD, GD, UOTHC, UD, BCD, DD, UNCHAR)	
DATE OF DISCHARGE	YYYYMMDD	
DISCHARGE AUTHORITY	AR . . . . .  	
DISCHARGE REASON		
BOARD DECISION	GRANT	
REVIEW AUTHORITY		
ISSUES         1.  334	128.00	
2.		
3.		
4.		
5.		
6.