IN THE CASE OF: BOARD DATE: 7 March 2017 DOCKET NUMBER: AR20150016110 BOARD VOTE: _________ _______ ________ GRANT FULL RELIEF ________ ________ ________ GRANT PARTIAL RELIEF ________ ________ ________ GRANT FORMAL HEARING ___x____ ___x____ ___x____ DENY APPLICATION 2 Enclosures 1. Board Determination/Recommendation 2. Evidence and Consideration IN THE CASE OF: BOARD DATE: 7 March 2017 DOCKET NUMBER: AR20150016110 BOARD DETERMINATION/RECOMMENDATION: The evidence presented does not demonstrate the existence of a probable error or injustice. Therefore, the Board determined the overall merits of this case are insufficient as a basis for correction of the records of the individual concerned. ____________x_____________ CHAIRPERSON I certify that herein is recorded the true and complete record of the proceedings of the Army Board for Correction of Military Records in this case. IN THE CASE OF: BOARD DATE: 7 March 2017 DOCKET NUMBER: AR20150016110 THE BOARD CONSIDERED THE FOLLOWING EVIDENCE: 1. Application for correction of military records (with supporting documents provided, if any). 2. Military Personnel Records and advisory opinions (if any). THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE: 1. The applicant requests recalculation of his Student Loan Repayment Program (SLRP) incentive based on his five original loan balances. 2. The applicant states: a. He is requesting adjustment of his SLRP disbursement to $6,000.00 per year in accordance with his enlistment contract and the Army regulatory guicance he relied upon. b. He was not notified that his disbursement amount would be adjusted after paying off two student loans. His enlistment contract states his SLRP disbursement will not exceed 15 percent of the original balance, not to exceed $6,000.00. He relied upon this language when paying off two of his five student loans. As a result, his original balance has been recalculated to the original amount of the three outstanding loans. c. He requested an exception to policy (ETP), but it was disapproved. 3. The applicant provides: * email from the U.S. Army Reserve Command (USARC), dated 3 August 2015 * memoranda for USARC, dated 8 August 2015 and 27 August 2015 * request for an ETP, dated 7 August 2015 * enlistment contract * loan documentation CONSIDERATION OF EVIDENCE: 1. The applicant enlisted in the U.S. Army Reserve (USAR) on 5 October 2011 for a period of 8 years. His SLRP Addendum shows he enlisted for the SLRP incentive in the amount of $40,000.00 and he acknowledged: a. The Government will repay a designated portion of any outstanding loan(s) he secured since 1 October 1975. Such loan(s) must have been made, insured, or guaranteed under Part B of the Higher Education Act of 1965 or any loan incurred for educational purposes made by a lender that is an agency or instrumentality of a State; a financial or credit institution that is subject to examination and supervision by an agency of the United States or any State; from a pension fund; or a nonprofit private entity. b. The amount to be repaid each year will not exceed 15 percent of the original balance (a maximum of $6,000.00) or $500.00, whichever is the greater, plus the accrued interest. c. Loan repayments will only be made to the lender or noteholder and nothing in this agreement will be construed as authority to refund any repayment of a loan. 2. He was appointed as a second lieutenant in the USAR on 21 June 2012. 3. He provided email from a USARC G-8 (Resource Management) analyst, dated 3 August 2015, stating: a. His annual payment was made appropriately. b. Unfortunately, the USAR can only pay toward loans that have remaining balances and can only include those loans' original balances when calculating the 15 percent. By paying off the loans himself, the original amounts of the loans were taken out of the equation. Once a loan is paid off, the USAR can no longer consider that original loan amount in the annual payment computation. c. Had he taken the same money and paid on each of his loans, leaving a balance due on all loans, the USAR could continue to pay based on his original $45,000.00 in loans. d. Because he was a conscientious citizen and paid off some of his debt, he ended up losing a large sum of money. Because this is not fair nor equitable, the USARC G-8 suggests he pursue an ETP through his unit to the USARC G-1 (Manpower and Personnel). e. If his request for an ETP is denied, he could apply to the Army Board for Correction of Military Records. 4. On 7 August 2015, he submitted a request for an ETP regarding SLRP disbursement. In summary, he stated: a. He enlisted in the USAR on 5 October 2011 and his contract includes the SLRP incentive in the amount of $40,000.00. He understood his annual disbursement for the SLRP would be $6,000.00 since the principal of his loans totaled $45,005.00. In Fiscal Years 2013, 2014, and 2015, his SLRP disbursement was calculated correctly and $6,000.00 was disbursed to his loan servicer. b. He paid off two of his five student loans in July 2014. The original outstanding principal of the three remaining open loans is $25,500.00. As a result, and with no warning or substantiating documentation offering an explanation, his SLRP disbursement for Fiscal Year 2016 is now calculated at $3,840. He is being penalized $2,160.00 for being responsible and paying off two loans early. Nowhere in any SLRP documentation is it stated that paying off loans early will change the calculation formula for the annual disbursement based on the original principal of the open loans. The guidance states that 15 percent of the original amounts will be disbursed annually. c. The $2,160.00 difference between the disbursement amounts is a significant amount of money for him. He had budgeted and projected paying off his student loans over the next 4 years with his $6,000.00 SLRP amount. 5. A memorandum from the Commander, Headquarters, 359th Theater Tactical Signal Brigade, dated 8 August 2015, subject: Command Endorsement Memorandum for (Applicant's) ETP, states he endorses the applicant's request for an ETP. 6. A memorandum from the Senior Human Resource Officer, Headquarters, 335th Signal Command (Theater), dated 27 August 2015, subject: Request for an ETP for (Applicant), states the 335th Signal Command (Theater) G-1 recommends approval of the applicant's request for an ETP. 7. On 10 September 2015, the USARC disapproved his request for an ETP and stated: a. Their research revealed that in accordance with Title 10, U.S. Code, section 16301(b), the portion or amount of a loan that may be repaid under subsection (a) is 15 percent or $500.00, whichever is greater, for each year of service, plus the amount of any interest that may accrue during the current year. b. The applicant paid off two of five student loans. He has a remaining balance of $22,000.00 in his open SLRP account. Annual payments will be made on his remaining principle loan balances. Therefore, the ETP is not authorized. 8. He was promoted to captain on 18 October 2016. REFERENCES: Title 10, U.S. Code, section 16301, provides for the education loan repayment program for members of Selected Reserve. a. The Secretary of Defense may repay any loan made, insured, or guaranteed under Part B of Title IV of the Higher Education Act of 1965; any loan made under Part D of such title (the William D. Ford Federal Direct Loan Program); any loan made under Part E of such title; or any loan incurred for educational purposes made by a lender that is an agency or instrumentality of a State; a financial or credit institution (including an insurance company)) that is subject to examination and supervision by an agency of the United States or any State, a pension fund approved by the Secretary for purposes of this section, or a nonprofit private entity designated by a State, regulated by that State, and approved by the Secretary for purposes of this section. b. Repayment of any such loan shall be made on the basis of each complete year of service performed by the borrower. c. The portion or amount of a loan that may be repaid under subsection (a) is 15 percent or $500.00, whichever is greater, for each year of service, plus the amount of any interest that may accrue during the current year. d. Nothing in this section shall be construed to authorize refunding any repayment of a loan. DISCUSSION: 1. The evidence of record shows the applicant enlisted in the USAR in October 2011 for the SLRP incentive. 2. He personally paid off two of his five student loans in 2014. 3. While his contentions were carefully considered, his SLRP addendum clearly states the Government will repay a designated portion of any outstanding loans. Loan repayments will only be made to the lender or noteholder and nothing in the SLRP agreement will be construed as authority to refund any repayment of a loan. 4. The Government will not make any payments to the Soldier or reimburse a Soldier if he or she personally pays off a student loan. //NOTHING FOLLOWS// ABCMR Record of Proceedings AR20150000953 Enclosure 1 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS ABCMR Record of Proceedings (cont) AR20150016110 2 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS Enclosure 1 ABCMR Record of Proceedings (cont) AR20150016110 5 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS Enclosure 2