PROCEEDINGS

	IN THE CASE OF:  

	BOARD DATE:           25 October 2001                   
	DOCKET NUMBER:   AR2001059791

	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 Amos		Analyst	

  The following members, a quorum, were present:

	Mr. Raymond J. Wagner		Chairperson	
	Ms. Kathleen A. Newman		Member	
	Mr. Ronald E. Blakely		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 his records be corrected to show he completed a Student Loan Repayment Program Addendum, DA Form 5261-4-R.

3.  The applicant states that he was eligible for the Student Loan Repayment Program (SLRP) and thought his records reflected his eligibility.  The Army Reserve Personnel Command (AR-PERSCOM) verified his eligibility.

4.  The applicant’s military records show that he enlisted in the U. S. Army Reserve (USAR) on 25 June 1990.  His Certificate and Acknowledgement of Service Requirements for Individuals Enlisting, Reenlisting, or Transferring into Troop Program Units of the U. S. Army Reserve, DA Form 3540/1, section V is checked indicating that an Addendum was completed, signed by the applicant, and attached.  However, no Addendum is available.  It appears he separated from the USAR around 1997 to enter the U. S. Marine Corps.

5.  By letter dated 21 May 2001, AR-PERSCOM informed the applicant’s Representative in Congress that after researching his case with the SLRP Office at Fort McCoy, WI they determined he was eligible for the SLRP for $10,000 but his records did not contain a DA Form 5261-4-R.  The applicant was advised to contact the Board to correct this matter.

6.  Office of the Deputy Chief of Staff for Personnel memorandum dated            14 January 1990, subject: CY 90 Selected Reserve Incentive Program (SRIP) indicated that the SLRP was made permanent beginning with the fiscal year 1986 program, that it was continued in calendar year 1990, that in calendar year 1990 all military occupational specialties (MOSs) were eligible for the SLRP up to $10,000 and certain others up to $20,000.

7.  The SLRP provides for the repayment by the Government of a designated portion of any outstanding student loan(s) secured after 1 October 1975.  The loan amount to be repaid is 15 percent of the original balance of the loan plus accrued interest not paid by the Department of Education, or $500.00 plus the accrued interest not paid by the Department of the Education, whichever is greater.  Payments will be made for each year of satisfactory service in the Selected Reserve.  The maximum amount of loans against which the 15 percent is computed will not exceed $10,000.  This equates to a maximum annual repayment of $1,500 plus interest.  If the amount set for repayment is less than $500.00, then $500.00 becomes the calculated amount for repayment that year. 

8.  To be eligible for the SLRP incentive, a person must contractually obligate himself or herself to serve satisfactorily, must serve in a reserve unit for a full term of the contractual agreement and must further obligate himself or herself to continue to serve in the same component and the same MOS unless excused for the convenience of the Government.  Entitlement to the SLRP will stop if the soldier is separated from the Selected Reserve.  Each complete satisfactory year of service performed under this SLRP agreement establishes an anniversary date.  Any qualifying loan which is at least a year old may then be paid in accordance with the terms of this educational enlistment incentive.

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.  Title 10, U. S. Code, section 1552, the law which provides for the 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.”

CONCLUSIONS:

1.  In accordance with AR-PERSCOM’s 21 May 2001 letter to the applicant’s Representative in Congress, the applicant’s records should be corrected to show he completed a DA Form 5261-4-R upon his enlistment in the USAR on 25 June 1990.  The applicant’s eligible student loans would then become eligible to be paid off per law and regulation.

2.  In the event the applicant’s eligible student loans are no longer eligible to be paid off per regulation and law, i. e., if he has since paid off his student loans, it would be appropriate to amend the DA Form 5261-4-R, section V to include the sentence “If a student loan is accepted by the officials processing you for reenlistment as payable under the SLRP and it is later discovered that it is not payable for reasons of law or regulation, 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.”  Then, in accordance with Title 10, U. S. Code, section 1552 the Defense Finance and Accounting Service (DFAS) could remit payment to the applicant in the total amount of his loans to which he would have been entitled had he been eligible for the SLRP.

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

RECOMMENDATION:

1.  That the applicant’s records be corrected to show he completed a DA Form 5261-4-R upon his enlistment in the USAR on 25 June 1990 and that his eligible student loans be paid off per law and regulation.

2.  That if the applicant’s eligible student loans cannot be paid off per law and regulation, that the DA Form 5261-4-R, section V be amended to include the sentence “If a student loan is accepted by the officials processing you for reenlistment as payable under the SLRP and it is later discovered that it is not payable for reasons of law or regulation, 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.” Then, in accordance with Title 10, U. S. Code, section 1552 DFAS shall remit payment to the applicant the total amount of his loans to which he would have been entitled had he been eligible for the SLRP as a result of the correction noted in paragraph 1, Recommendation. 

BOARD VOTE:  

__rjw___  __kan___  __reb___  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

			Raymond J. Wagner
		______________________
		        CHAIRPERSON

INDEX

CASE ID	AR2001059791	
SUFFIX		
RECON		
DATE BOARDED	20011025	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	(GRANT)	
REVIEW AUTHORITY		
ISSUES         1.	128.00	
2.		
3.		
4.		
5.		
6.