IN THE CASE OF: BOARD DATE: 20 May 2014 DOCKET NUMBER: AR20140003926 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 origination of a DA Form 5536-R (Health Professionals Loan Repayment Program (HPLRP) Agreement) so she may retain the HPLRP incentive. She also requests cancellation of the recoupment action. 2. The applicant states: a. She was fully eligible for the HPLRP, but neither she nor the Army signed an HPLRP agreement. b. She was first made aware that she was ineligible for the HPLRP through the California National Guard Incentives Task Force audit process because she had no contract on file and her lender was paid above her eligible loan amount. c. She was an enlisted Soldier for 17 years prior to her direct commission in 2005 as a medical-surgical nurse. She was administered her oaths of office on 13 August 2005 and she was appointed as a second lieutenant in the California Army National Guard (CAARNG) on 30 August 2005. During the period 2006 to 2008, she inquired with the CAARNG State Incentives Manager as to whether she qualified for the HPLRP incentive. She was told she did qualify for the HPLRP and the State Incentives Manager told her she would prepare the necessary paperwork to submit for payment. The State Incentives Manager requested her Sallie Mae account numbers and explained that payment would be made directly to the student loan financial institution account. The applicant provided the paperwork to the State Incentives Manager and she processed the paperwork. d. The student loan repayment was made in the amount of $36,500.00 directly to the financial institution. e. While she never signed an HPLRP contract, she was otherwise fully eligible under the Army Medical Department (AMEDD) policy in place at the time. 3. The applicant provides: * Incentives Task Force Loan Repayment audit form * Appointment orders * ARNG AMEDD Officer Incentive Programs for Fiscal Year 2006/2007 * Loan Repayment Program installment payments * promotion orders * memoranda, dated 16 March 2012, 14 November 2013, and 2 December 2013 * National Student Loan Data System (NSLDS) audit forms * nursing certifications * DA Form 5074-1-R (Record of Award of Entry Grade Credit – Health Services Officers) * National Guard Bureau (NGB) Form 337 (Oaths of Office), dated 13 August 2005 CONSIDERATION OF EVIDENCE: 1. Having prior active enlisted service in the Regular Army and enlisted service in the CAARNG, an NGB Form 337 shows the applicant was granted temporary Federal recognition in the rank of second lieutenant in the CAARNG on 13 August 2005. She was appointed as a second lieutenant in the CAARNG on 30 August 2005. She was promoted to captain on 19 May 2011. 2. The available records do not contain a DD Form 5536-R. 3. A memorandum from the CAARNG, dated 14 November 2013, states: a. The Soldier Incentives Assistance Center (SIAC) audited the applicant and discovered the HPLRP addendum was missing from her personnel records. There is no evidence of fraud on the part of the applicant and she was otherwise eligible for the HPLRP incentive. b. The applicant is now requesting correction of her military records to reflect a valid HPLRP contract as well as relief from recoupment of the amount she received in excess of her Federal loan obligation based upon her reliance on the former State Incentives Manager who has since been incarcerated for incentives fraud. c. On 8 January 2013, the SIAC certified a $36,500.00 HPLRP debt for the CAARNG to initiate recoupment. As of 15 November 2013, $1,151.73 of the debt has been repaid to the Government. d. The applicant was commissioned on 30 August 2005 and she was eligible for the HPLRP incentive in accordance with the AMEDD Officer Incentive Program Policy 06-07. e. She was paid $36,500.00 in two separate payments of her Federal loans on 23 January 2008. Per NSLDS history sheets provided to the SIAC by the applicant at a later date, she would have been eligible for $31,659.00 under the HPLRP; therefore, she was paid $4,841.00 above the amount she was eligible to receive. f. To be eligible for the $31,659.00 HPLRP, a properly-executed addendum is required at the time of commissioning. Relief from recoupment is the only favorable action regarding the $4,841.00 overpayment. 4. A memorandum from a CAARNG Legal Assistance officer, dated 2 December 2013, states: a. The CAARNG SIAC audited the applicant and discovered she was not eligible to receive payment on her HPLRP due to no signed written agreement on file. b. In a memorandum, dated 6 November 2013, the ARNG Officer Incentives Program Manager stated that "due to no signed written agreement, DA Form 5536-R, that repayment of [Applicant's] loans were [sic] made erroneously, and should be recouped." c. In a memorandum, dated 5 June 2013, the applicant stated the CAARNG State Incentives Manager told her she was eligible for the HPLRP. Furthermore, the applicant demonstrated she was fully eligible for the HPLRP, but for the lack of a signed DA Form 5536-R. d. The NSLDS printout shows $34,697.00 in eligible loans and interest. Her lender was paid $36,500.00 in HPLRP funds. e. The CAARNG Legal Assistance officer requested creation of a DA Form 5536-R and amendment to a DA Form 5536-R, dated 13 August 2005, so the applicant could retain her HPLRP and be relieved from recoupment of the additional $1,803.00 paid to her lender. 5. An advisory opinion was obtained from the Chief, Personnel Policy Division, NGB, in the processing of this case. The advisory official stated: a. The applicant submitted all her loan account numbers and paperwork via email and fax to the former CAARNG State Incentives Manager because she was assured she qualified for the HPLRP. Her loans were paid, but no contract can be found to validate the agreement. According to Title 10, U.S. Code, section 16302, this would prevent her from receiving the benefit because the contract requires a signed and valid agreement. b. According to the information from the NSLDS, the sum of all her loans totaled $34,697.00. The lender received $36,500.00 in two installments (a first payment of $20,000.00 and a second payment for $16,500.00) on 23 January 2008. Her lender was overpaid $1,803.00. The CAARNG SIAC stated $1,151.73 has been repaid to the Government as of 14 November 2013. According to the qualifications listed in the AMEDD Officer Incentive Program memorandum for Fiscal Year 2006-2007, she was eligible to receive the HPLRP. The memorandum from the CAARNG SIAC, dated 14 November 2013, suggests that this is no fault of the applicant and recommends relief from recoupment. c. The CAARNG concurs with this recommendation. 6. On 7 March 2014, the advisory opinion was furnished to the applicant for comment. The applicant did not respond. 7. Army Regulation 135-7 (Incentives Programs) states the HPLRP is designed to repay designated loans secured by eligible commissioned officers of the Medical Corps and Army Nurse Corps assigned to the Selected Reserve. Paragraph 7-2 states that effective 1 July 1986, the HPLRP provides for the repayment by the Government of outstanding loan(s) that were secured after 1 October 1975. There is no provision for repayment of outstanding loans to individuals. DISCUSSION AND CONCLUSIONS: 1. The evidence confirms the applicant was appointed in the CAARNG on 30 August 2005 and it appears she was eligible for the HPLRP because her loans were paid. 2. Through no fault of the applicant, it was later determined that she was not eligible for the HPRLP because there was no signed DA Form 5536-R for the HPLRP. 3. She submitted all her loan account numbers and paperwork to the CAARNG State Incentives Manager because she was assured that she qualified for the HPLRP. In view of the facts and circumstances of this case, it would be appropriate at this time and serve the interest of justice and equity to correct the applicant's military records to show she executed a DA Form 5536-R on 30 August 2005 and cancel the recoupment action. BOARD VOTE: ____x___ ____x___ ____x___ GRANT FULL RELIEF ________ ________ ________ GRANT PARTIAL RELIEF ________ ________ ________ GRANT FORMAL HEARING ________ ________ ________ DENY APPLICATION BOARD DETERMINATION/RECOMMENDATION: The Board determined the evidence presented is sufficient to warrant a recommendation for relief. As a result, the Board recommends that all Department of the Army and State ARNG records of the individual concerned be corrected by: a. showing she and all appropriate officials properly signed a DA Form  5536-R on 30 August 2005 and b. cancelling all recoupment actions as a result of the above correction. _______ _ _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. ABCMR Record of Proceedings (cont) AR20140003926 3 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS 1 ABCMR Record of Proceedings (cont) AR20140003926 2 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS 1