MEMORANDUM OF CONSIDERATION

	IN THE CASE OF:      

	BOARD DATE:           4 June 2002                   
	DOCKET NUMBER:   AR2001065409

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

	Mr. Carl W. S. Chun		Director	
	Mr. Edmund P. Mercanti 		Analyst	

  The following members, a quorum, were present:

	Ms. Jennifer L. Prater		Chairperson	
	Mr. Arthur A. Omartian		Member	
	Ms. Regan K. Smith		Member	

	The Board, established pursuant to authority contained in 10 U.S.C. 1552, convened at the call of the Chairperson on the above date.  In accordance with Army Regulation 15-185, the application and the available military records pertinent to the corrective action requested were reviewed to determine whether to authorize a formal hearing, recommend that the records be corrected without a formal hearing, or to deny the application without a formal hearing if it is determined that insufficient relevant evidence has been presented to demonstrate the existence of probable material error or injustice.

	The applicant requests correction of military records as stated in the application to the Board and as restated herein.

	The Board considered the following evidence:

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

APPLICANT REQUESTS:  In effect, that her $20,000.00 Student Loan Repayment Program (SLRP) enlistment addendum be honored as written.

APPLICANT STATES:  In effect, that since a representative of the Army who was empowered to enter into a legally binding contract with her executed a $20,000.00 SLRP addendum with her, the Army is bound by the terms of that contract.

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

On 20 February 1988 she enlisted in the Army Reserve for assignment to a Troop Program Unit (TPU).  In conjunction with that enlistment she executed a $10,000.00 SLRP addendum.

She was promoted to sergeant, completed her enlistment, and was honorably discharged at the expiration of her term of service on 5 March 1996.

She enlisted in the Army Reserve for 6 years as prior service on 16 May 1999.  In conjunction with that enlistment she executed a $20,000.00 SLRP addendum.

On 31 July 2000 the applicant was notified that her original $10,000.00 SLRP contract could not be increased.  The applicant sent a letter contesting that ruling on 3 November 2000.  The servicing Finance and Accounting Office (F&AO) responded on 30 November 2000, reiterating that a $10,000.00 SLRP cannot be increased.

On 26 January 2001 the applicant requested an exception to policy to increase her $10,000.00 SLRP to a $20,000.00 SLRP.  

On 18 May 2001 the office of the Chief, Army Reserve, denied her request for exception to policy and informed the applicant she could either remain in the unit without the increased SLRP, she could request discharge, or she could petition this Board.

On the date the applicant submitted her application, she remained assigned to her TPU, serving in pay grade E-6.

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.  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 his or her unit.  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.  In other words, a reservist may not submit any loan for repayment until he or she has completed a year of his or her enlistment.  The Government will not reimburse a soldier if he or she pays off a student loan.  The Government will only pay the lending institution.

Army Regulation 135-7, paragraph 5.1-10, states, in effect, that effective 1 January 1992 when a reservist who executed a SLRP addendum during a previous enlistment enlists in the USAR for assignment to a TPU as prior service, he or she may only receive the amount of SLRP which remained unused from the prior SLRP addendum.  The reservist cannot execute a SLRP addendum for a higher amount than the original SLRP addendum.

The Comptroller General of the United States has ruled in similar cases that although a service member may have been misinformed about his entitlements, the Government is not liable for erroneous actions of its officers, agents, or employees in the performance of their official duties.

Army Regulation 135-178, paragraph 9-10, states that an enlistment is defective when a soldier receives a written enlistment or reenlistment commitment from recruiting or retention personnel which cannot be fulfilled by the military.  This paragraph provides the authority to discharge reservists who have defective enlistments.

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

1.  The applicant was not authorized to execute a SLRP contract for an amount which exceeded the amount of her original SLRP addendum.  As such, her enlistment was defective.

2.  Contrary to the applicant’s contention, the Army is not bound by the erroneous actions of its officers, agents, or employees in the performance of their official duties.  To the contrary, Army regulations specify that a soldier who is given an enlistment incentive which cannot be honored may request discharge.  Receiving the incentive is not one of the soldier’s options when a defective enlistment occurs.

3.  The applicant was notified that she was limited to her original $10,000.00 SLRP immediately after she submitted her first request for payment of her student loans.  As such, she knew her enlistment was defective in a timely fashion.

4.  To grant the applicant’s request would be giving her a benefit not provided to other soldiers.

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

__aao ___  ____rks _  ___jlp___  DENY APPLICATION

		    Carl W. S. Chun
		    Director, Army Board for Correction
    of Military Records

INDEX

CASE ID	AR2001065409	
SUFFIX		
RECON	YYYYMMDD	
DATE BOARDED	2020604	
TYPE OF DISCHARGE	(HD, GD, UOTHC, UD, BCD, DD, UNCHAR)	
DATE OF DISCHARGE	YYYYMMDD	
DISCHARGE AUTHORITY	AR .  .  .  .  .  	
DISCHARGE REASON		
BOARD DECISION	 DENY	
REVIEW AUTHORITY		
ISSUES         1.	128.07	
2.		
3.		
4.		
5.		
6.