BOARD DATE: 28 November 2017 DOCKET NUMBER: AR20170000586 BOARD VOTE: ___x______ __x_____ __x______ GRANT FULL RELIEF ________ ________ ________ GRANT PARTIAL RELIEF ________ ________ ________ GRANT FORMAL HEARING ________ ________ ________ DENY APPLICATION 2 Enclosures 1. Board Determination/Recommendation 2. Evidence and Consideration BOARD DATE: 28 November 2017 DOCKET NUMBER: AR20170000586 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 records of the individual concerned be corrected by showing the appropriate documents were completed and submitted in a timely manner authorizing his eligibility for a $10,000.00 Student Loan Repayment Program incentive, thereby reinstating his entitlement to two anniversary payments (i.e., 12 November 2005 and 2006) of 15 percent of the $6,625.00 in loans that were secured on 9 February 2004, plus the accrued interest, and paying any monies due under the Student Loan Repayment Program based on this 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. BOARD DATE: 28 November 2017 DOCKET NUMBER: AR20170000586 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, in effect, correction of his records to show entitlement to the $10,000 Student Loan Repayment Program (SLRP) incentive that he contracted for upon enlistment in the U.S. Army Reserve (USAR). 2. The applicant states that he enlisted in the USAR on 12 November 1999 with entitlement to the SLRP incentive. When he inquired about his student loan repayments, he was told that he had to finish college before he could begin to receive the payments. When he graduated from college, he was told that repayments were supposed to have started while he was attending school. a. In 2007, he enlisted in the Regular Army (RA). When he inquired into SLRP payments at that time, he was told that he had to process his request through the USAR. He adds that he was never able to get a definitive answer about his entitlement to payments under the SLRP. b. He states that he has been paying his student loans without the benefit of the SLRP incentive. He is seeking a determination of his entitlement to the SLRP incentive. 3. The applicant provides a copy of a receipt of payment of student loans with payment history and his USAR enlistment documents that include a: * DD Form 4 (Enlistment/Reenlistment Document – Armed Forces of the United States) * DD Form 1966 (Record of Military Processing – Armed Forces of the United States) * DA Form 3540-R (Certificate and Acknowledgement of USAR Service Requirements and Methods of Fulfillment) * DA Form 5261-R (Selected Reserve Incentive Program – Enlistment Bonus Addendum) * DA Form 5261-4-R (SLRP Addendum) * DA Form 5435-R (Statement of Understanding – The Selected Reserve Montgomery GI Bill) CONSIDERATION OF EVIDENCE: 1. The applicant enlisted in the USAR on 12 November 1999 for a period of 8 years. His enlistment contract, in pertinent part, includes a SLRP Addendum that shows in: * Section III (Acknowledgement), he enlisted for a maximum of $10,000 in loan repayments. * Section V (Entitlement), repayment of the qualifying student loans will be made after each year of satisfactory service in the Selected Reserve after securing the loan(s) and reaching the anniversary date of this agreement. For each year of satisfactory service in the Selected Reserve, the loan amount to be repaid will be, in pertinent part, "A maximum of $10,000 during my military career as I have acknowledged in Section III, above, and that amount will not increase. The amount to be repaid each year will not exceed 15 percent (%) of the original balance (a maximum of $1,500) or $500, whichever is greater, plus the accrued interest." * Section VII (Termination): I understand that the terms of this addendum will remain in force as long as I continue to participate satisfactorily under a contractual agreement as a member of the Selected Reserve. Paragraph 4 shows termination occurs if, "separated from my enlisted status in the Selected Reserve, for any reason, except for an authorized period of nonavailability. This includes enlistment in the RA or voluntary entry on extended active duty in the Active Army." * Section VIII (Statement of Understanding) and Section IX (Certification by Service Representative), the applicant and service representative signed the SLRP Addendum on 12 November 1999 2. A DD Form 214 (Certificate of Release or Discharge from Active Duty) shows the applicant was ordered to active duty for training (ADT) on 26 July 2000, released from ADT on 14 December 2000, and transferred to a USAR unit. He completed 4 months and 19 days of net active service this period. It also shows he completed the 8-week Food Service Specialist course and was awarded military occupational specialty (MOS) 92G (Food Service Specialist). 3. The applicant was promoted to sergeant (E-5) on 16 January 2003. 4. Headquarters, 77th U.S. Army Regional Readiness Command, Fort Totten, NY, Orders 07-087-00008, dated 28 March 2007, honorably discharged the applicant from the USAR effective 2 January 2007 based on his enlistment in the RA on 1 March 2007. 5. A DD Form 4 shows the applicant enlisted in the RA on 7 March 2008 for a period of 4 years. He is currently serving in the rank of sergeant first class (E-7). 6. In support of his application the applicant provides the following documents. a. American Education Services, Harrisburg, PA, Credit Reference Letter, dated 19 September 2017, that shows "Paid in Full" and, in pertinent part: Date of Loan Original Current Disbursement Program Amount Balance 9 February 2004 Stafford $2,625.00 $0.00 9 February 2004 Stafford $4,000.00 $0.00 Unsubsidized b. American Education Service, Transaction History, as of 13 January 2017, that shows a history of the transaction types, amounts, late fees, interest, principal payment, and a running balance. In pertinent part, it shows: Date Description Amount 17 January 2005 Loan Transfer - All Loans $6,625.00 24 June 2005 Interest Capitalization $132.70 7 August 2006 Interest Capitalization $159.82 7 August 2007 Interest Capitalization $199.06 1 February 2008 Interest Capitalization $797.47 22 March 2008 Late Fee $4.77 22 June 2008 Late Fee $4.77 15 August 2011 Interest Capitalization $19.91 1 January 2012 Interest Capitalization $54.29 1 April 2013 Government Pay $100.00 3 January 2017 Loan Balance $534.74 7. In the processing of this case, an advisory opinion was obtained from the Division Chief, Soldier Support Division, USAR Command, Fort Bragg, NC, dated 19 September 2017. a. The advisory official recommends approval of the applicant's request for reimbursement of student loan payments under the SLRP incentive. b. The advisory official states, on 12 November 1999, the applicant enlisted in the USAR in a critical MOS (92G) and he was authorized to receive $10,000 towards the SLRP. His SLRP anniversary date was 12 November 2000 and each year thereafter, as long as he remained in good standing and in the same MOS with the Army Reserve. She noted termination of SLRP occurs if a Soldier voluntarily enters or is ordered to extended active duty in the Active Army. c. The applicant secured a loan on 9 February 2004 for $6,625. If approved, SLRP will only repay 15% of the $6,625 loan. In addition, the applicant must request a waiver of the Barring Act time limit in order to receive payments outside of the 6-year statute of limitations. 8. On 5 October 2017, the applicant was provided a copy of the advisory opinion to allow him the opportunity to submit comments or a rebuttal. 9. On 10 October 2017, the applicant provided his agreement with the advisory opinion. He also requested that the Barring Act time limit be waived in his case. REFERENCES: 1. Army Regulation 135-7 (Incentive Programs), in part, restricts the SLRP to those Reservists who either enlist or reenlist for a skill or unit approved by the Department of the Army and disseminated to the field by a list of MOSs and units, which is updated every 6 months. This educational incentive may only be elected at the time of enlistment or reenlistment. a. 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. b. The incentive pays a limited sum of money to a lending institution on the anniversary date of an enlistment or reenlistment. It authorizes the USAR to repay 15% of the outstanding balance of all eligible student loans, plus the interest, not to exceed $1,500 per year. These payments continue on a yearly basis unless the Soldier loses eligibility. 2. Title 31, U.S. Code, section 3702, is the 6-year barring statute for payment of claims by the Government. In essence, if an individual brings a claim against the Government for monetary relief, the barring statute provides that the Government is only obligated to pay the individual 6 years from the date of the approval of the claim. DISCUSSION: 1. The applicant contends that his military service records should be corrected to show entitlement to the $10,000 SLRP incentive. 2. Records show the applicant enlisted in the USAR on 12 November 1999 for a period of 8 years with entitlement to a $10,000 SLRP incentive based on award of critical MOS 92G. a. On 14 December 2000, he successfully completed ADT and was awarded MOS 92G. b. On 9 February 2004, he secured two loans in the total amount of $6,625. c. He was eligible for SLRP payments for the loans beginning 12 November 2005. 3. For reasons that are not clear, the applicant was not paid for the student loans he secured. 4. He was honorably discharged from the USAR effective 2 January 2007 based on his enlistment in the RA. Accordingly, his entitlement to the SLRP terminated. 5. The evidence of record shows the applicant was entitled to payment of 15% of the original loan balance ($6,625) each year (i.e., on 12 November 2005 and 2006), plus the accrued interest. 6. The USAR Command, Fort Bragg, NC, agrees that the applicant's request merits administrative relief. //NOTHING FOLLOWS// ABCMR Record of Proceedings AR20150000953 Enclosure 1 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS ABCMR Record of Proceedings (cont) AR20170000586 2 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS Enclosure 1 ABCMR Record of Proceedings (cont) AR20170000586 5 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS Enclosure 2