PROCEEDINGS

	IN THE CASE OF:  

	BOARD DATE:           27 March 2001                  
	DOCKET NUMBER:   AR2000047543

	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	
	Mr. W. W. Osborn, Jr. 		Analyst	

  The following members, a quorum, were present:

	Mr. Roger W. Able		Chairperson	
	Ms. Gail J. Wire		Member	
	Mr. Allen L. Raub		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, in effect, requests reconsideration of his previous application to correct his military records by showing that he is entitled to have his educational loans from the Farmers State Bank repaid as a part of his enlistment incentive.  

3.  The applicant states that he was assured that he was entitled to this enlistment benefit.  He only enlisted after he was assured that all of his educational loans would be paid under the Loan Repayment Program (LRP).  In support of his request he submits a letter from the senior guidance counselor at Military Entrance Processing Station where he enlisted.

4.  The Memorandum of Consideration of the Board’s 19 April 2000 review of his case (AR1999031779) is incorporated herein by reference as if wholly set forth.

5.  The applicant’s submission is new evidence that requires Board consideration.

6.  The statement from the recruiter, a first sergeant, relates that the applicant furnished a copy of the Farmers State Bank loan documents that are currently at issue.  The recruiter checked with his educational incentives advisor at Fort Knox, Kentucky and was told that the loans were eligible for the LRP.  
 
7.  Title 10, U.S. Code, section 2171, limits loans that are eligible for repayment under the LRP to those made, insured, or guaranteed under the Higher Education Act of 1965.

8.  Title 10, U.S. Code, section 1552, (10 USC 1552) the law which provides for this 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.”

9.  Copies of the Farmers State Bank loans show that the initial amounts totaled $16,000.  Staff liaison with the bank indicates that, to date the applicant has paid $7,222.43 on the principal and $1,618.98 in interest.  The principal is currently $15,277.57 and the accrued interest is 2,611.98. 

CONCLUSIONS:

1.  The statement from the recruiter confirms that the applicant enlisted only after he had been assured that the Farmers State Bank loans would be covered by the LRP.  To continue to deprive him of this benefit because of  the Army recruiters’ error is unjust.

2.  Even though the applicant’s loan cannot be repaid under the LRP they can be paid or he may be reimbursed under the authority of Title 10, U.S. Code, section 1552.

3.  The applicant owes and/or has paid a total of $20,230.96

4.  In view of the foregoing findings and conclusions, correcting  the applicant’s records as recommended below would rectify an injustice.

RECOMMENDATION:  That all of the Department of the Army records related to this case be corrected by:

	a.  amending paragraph 4a of the DA Form 3286-66, US Army Incentive Enlistment Program, of the individual concerned to include the sentence “If a student loan is accepted by the officials processing you for enlistment as payable under the LRP and it is later discovered that it is not payable due to it not being made or insured under the Higher Education Act of 1965 (Guaranteed Student Loan) or due to the student loan(s) no longer being outstanding, the ABMCR may pay the loan(s), or any portion of the loan(s), at its sole discretion, in accordance with Title 10, U.S.C., Section 1552”; 

b.  as the result of the foregoing recommendation and in accordance with 10 USC 1552, the Defense Finance and Accounting Service (DFAS) shall remit, at the appropriate place and time, payment to the individual concerned of the total amount of his loan, plus interest, to which he is entitled as the result of this correction.  The individual concerned will submit appropriate evidence (promissory note, interest accrued and balance statement to DFAS; and 

c.  as the result of the payment authorized herein, the enlistment contract of the individual concerned will be modified to show that, if he fails to complete his enlistment contract through any fault on his own, an amount proportional to the unserved part of his enlistment will be recouped.

BOARD VOTE:

__RWA __  __GJW__  __ALR__  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

		_____Roger W. Able_____
		        CHAIRPERSON

INDEX

CASE ID	AR2000047543	
SUFFIX		
RECON		
DATE BOARDED	20010327	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	MODIFY	
REVIEW AUTHORITY		
ISSUES         1.	128.05	
2.		
3.		
4.		
5.		
6.