PROCEEDINGS

	IN THE CASE OF:  

	BOARD DATE:           11 January 2001                   
	DOCKET NUMBER:   AR2000047828

	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. Ernest M. Willcher		Chairperson	
	Ms. Ann M. Campbell		Member	
	Mr. Donald P. Hupman, Jr.		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 he be authorized the Student Loan Repayment Program (SLRP) for which he enlisted.

3.  The applicant states that he enlisted under the impression that his student loans up to $10,000.00 would be repaid under the SLRP.  He was notified in November 1998 that he was not eligible for the SLRP.

4.  The applicant’s military records show that he enlisted in the U. S. Army Reserve (USAR) on 26 January 1995 for training in military occupational specialty (MOS) 37F.  His Student Loan Repayment Program Addendum, DA Form 5261-4-R, shows that he contracted for completion of initial active duty for training and qualification in MOS 37F which Headquarters, Department of the Army approved for a maximum of $10,000 in loan repayments.  His Army Guidance Counselor signed the form certifying that the applicant’s MOS was currently eligible for the designated portion authorized for loan repayment.  The applicant completed that training.

5.  On 23 November 1998, the applicant was informed that MOS 37F was not a DA approved MOS and that he could apply to the Board for relief.  Instead, his unit requested an exception to policy through command channels on 28 April 1999.

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. 

7.  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.

8.  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.

9.  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.  The evidence of record shows that the applicant enlisted in the U.S. Army Reserve, in good faith, for the Student Loan Repayment Program incentive on    26 January 1995.  His guidance counselor signed his SLRP addendum certifying that the MOS for which he enlisted was approved for the SLRP.

2.  The applicant served the Army in good faith for almost four years thinking he was entitled to the SLRP incentive before the Army discovered and notified him that he was not eligible for entitlement.  Through no fault of his own, he was denied that entitlement.

3.  The applicant’s military records may be corrected to show his DA Form   5261-4-R, Student Loan Repayment Program Addendum, section V, was 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.”  This would allow the Board to invoke that provision and pay him the amount his lending institution would have been paid under the SLRP.

4.  In view of the foregoing and as an exception to policy, the applicant’s records should be corrected as recommended below.

RECOMMENDATION:

1.  That the applicant’s DA Form 5261-4-R, Student Loan Repayment Program Addendum, 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.”
2.  That in accordance with Title 10, U. S. Code, section 1552, DFAS shall remit payment to the applicant the amount of his loans to which he would have been entitled had he been eligible for the SLRP as a result of the above correction.

BOARD VOTE:  

__emw___  __amc___  __dph__  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

			Ernest M. Willcher
		______________________
		        CHAIRPERSON

INDEX

CASE ID	AR2000047828	
SUFFIX		
RECON		
DATE BOARDED	20010111	
TYPE OF DISCHARGE		
DATE OF DISCHARGE		
DISCHARGE AUTHORITY		
DISCHARGE REASON		
BOARD DECISION	(GRANT)	
REVIEW AUTHORITY		
ISSUES         1.	128.00	
2.		
3.		
4.		
5.		
6.