RECORD OF PROCEEDINGS AIR FORCE BOARD FOR CORRECTION OF MILITARY RECORDS IN THE MATTER OF: DOCKET NUMBER: BC-2013-02102 COUNSEL: NONE HEARING DESIRED: NO ________________________________________________________________ APPLICANT REQUESTS THAT: He be reimbursed $7,077.89 he made towards his college loans. ________________________________________________________________ APPLICANT CONTENDS THAT: The Air Force Board for Correction of Military Records (AFBCMR) corrected his records in 2009 to allow him to enroll in the Enlisted College Loan Repayment Program (ECLRP). However, due to the time it took to correct his records, he did not gain any benefit from the correction. His loans that would have qualified under ECLRP cannot be submitted under the program for payment because he already paid them off. ECLRP only pays for active loans. If he was properly counselled and enrolled in the ECLRP at the time of his entry into the military, his loans would have been partially paid under the program. In support of his request, the applicant provides a personal statement, copies of electronic communiqués, memorandums, loan statements, payment history and various other documents related to his request. The applicant's complete submission, with attachments, is at Exhibit A. ________________________________________________________________ STATEMENT OF FACTS: On 12 Nov 2002, the applicant enlisted in the Regular Air Force. On 2 Dec 2008, the applicant submitted an application to the AFBCMR requesting his records be corrected to allow his enrollment in the Enlisted College Loan Repayment Program (ECLRP). On 8 Sep 2009, the Secretary of the Air Force directed that the applicant’s record be corrected to show that he met the eligibility criteria to participate in the ECLRP and on 12 Nov 2002, he elected to participate in the Program. On 1 Dec 2009, the Defense Finance and Accounting Service (DFAS) contacted the applicant requesting further information regarding the directive issued by the office of the Secretary of the Air Force. On 26 Apr 2011, DFAS advised the applicant they could not make payment on his correction as the directive did not stipulate that he be reimbursed for any college loans he borrowed on. On 2 Jul 2011, AFPC/DPSIT notified the applicant via electronic communiqué that he was enrolled in the ECLRP. ECLRP is a recruitment incentive open to eligible first-time enlistees having federally-insured student loans. Participation is restricted to enlisted Airmen who, upon enlistment, have the incentive documented on AF Form 3008, Supplement to Enlistment Agreement—United States Air Force. ________________________________________________________________ AIR FORCE EVALUATION: AFPC/DPSIT recommends denial. DPSIT states that the Air Force policy on ECLRP does not provide for reimbursement of money a member has paid on their loan(s). The applicant is requesting a reimbursement of $1,981.81 [sic]. The requested amount is based upon applying a 28 percent rate to the original federal student loan balances of $7,077.89. All lenders associated with the federal government do not apply a 28 percent rate to the unpaid principal balance of a federal student loan. The 28 percent used was the Federal Income Tax Withholdings (FITW) rate applied to loan payments made towards a member's federal student loan via the ECLRP. The applicant is essentially requesting the FITW be reimbursed to him if he had participated in the program. If he had participated in the ECLRP he would have received a W- 2 for the applicable tax year. The W-2 would show how much DPSIT processed the payment(s) for and the amount of taxes withheld. He would have filed that W-2 with his other W-2(s). There is no guarantee he would have received the FITW in a refund. His tax bracket would have determined the overall amount of a refund if any. The complete DPSIT evaluation, with attachment, is at Exhibit C. ________________________________________________________________ APPLICANT'S REVIEW OF AIR FORCE EVALUATION: He did not request the 28 percent FITW be reimbursed for the federal student loans he paid. He is asking for the amount he paid, which was $7,077.89 be reimbursed to him. The advisory opinion assumes he wanted to be reimbursed the taxes and therefore should not be considered as a reason for denial as it is not what was originally requested. Again, the gross amount of $7,077.89 is what he is requesting less taxes. DPSIT states that ECLRP does not provide reimbursement of money a member has paid on their loans. This is correct and is the very reason he is appealing to the Board as an avenue for recouping money he paid for his student loan that otherwise would have been covered under ECLRP if the initial error had not happened in the first place. The fact the Board previously granted his request to allow him to enroll in the ECLRP is half a victory. While he was allowed to enroll in the ECLRP, albeit several years after the fact, he was not able to benefit from this correction because of the amount of time it took to correct his record and the loan was paid off. ________________________________________________________________ THE BOARD CONCLUDES THAT: 1. The applicant has exhausted all remedies provided by existing law or regulations. 2. The application was timely filed. 3. Sufficient relevant evidence has been presented to demonstrate the existence of an error or injustice. We note that the applicant’s record was previously corrected in Sep 2009, to allow him to enroll in the ECLRP effective 12 Nov 2002. However, due to the length of time it took to correct the record, the applicant eventually paid the loan off, consequently the previous correction to his record did not offer him full and fitting relief. For that reason, we believe the applicant suffered an injustice. Although, the Air Force office of primary responsibility asserts that the Air Force ECLRP policy does not provide for reimbursement of money paid on a loan, we believe, the applicant should benefit from the earlier correction to his record. While the applicant requests he be reimbursed $7,077.89 less taxes, the Defense Finance and Accounting Service states they will report the $7077.89 as wages. Therefore, when the applicant files his tax return he must declare the payment as taxable income and pay the associated taxes at that time, if applicable. Accordingly, we recommend his records be corrected as set forth below. ________________________________________________________________ THE BOARD RECOMMENDS THAT: The pertinent military records of the Department of the Air Force relating to APPLICANT, be corrected to show that he was in a temporary duty status for a sufficient number of days to accumulate an entitlement of $7,077.89. ________________________________________________________________ The following members of the Board considered Docket Number BC- 2013-02102 in Executive Session on 20 Feb 2014, under the provisions of AFI 36-2603: , Panel Chair , Member , Member All members voted to correct the record as recommended. The following documentary evidence was considered: Exhibit A. DD Form 149, dated 21 Apr 2013, w/atchs. Exhibit B. Applicant's Master Personnel Records. Exhibit C. Letter, AFPC/DPSIT, dated 7 Jun 2013, w/atch. Exhibit D. Letter, SAF/MRBR, dated 21 Jun 2013. Exhibit E. Letter, Applicant, dated 3 Jul 2013. Panel Chair