ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS IN THE CASE OF: BOARD DATE: 10 January 2020 DOCKET NUMBER: AR20170007855 APPLICANT REQUESTS: entitlement to repayment of student loans in compliance with the Student Loan Repayment Program (SLRP). APPLICANT'S SUPPORTING DOCUMENTS CONSIDERED BY THE BOARD: * DA Form 149 (Application for Correction of Military Record) * DA Form 2823 (Sworn Statement) dated 9 July 2011 * DA Form 2823 (Sworn Statement) dated 2 February 2013 * Annex L to DD Form 4 (Student Loan Repayment Program Addendum) * Inspector General letter * Memorandum for Record – Exception to Policy for SLRP * National Guard Bureau Response letter to Congressional Representative * American Education Services Transaction History Statement * Loan Agreement with Doral Bank FACTS: 1. The applicant did not file within the three year time frame provided in Title 10, United States Code (USC), section 1552(b); however, the Army Board for Correction of Military Records (ABCMR) conducted a substantive review of this case and determined it is in the interest of justice to excuse the applicant's failure to timely file. 2. The applicant states that he reenlisted in the Army National Guard for six years with entitlement to the SLRP. He contests that the private loan that he received was pre-approved by his Unit Retention NCO and the Illinois Army National (ILARNG) Guard Education and Incentives Branch Office in 2007. At this time he has fulfilled his contractual obligation, including a deployment to Afghanistan, under the auspice that his student loan would be repaid in full. When he signed the enlistment extension contract, he was advised that the loan payments would need to be paid out of pocket; however, the ARNGB would reimburse him annually for the payments being made. He denies ever being advised that the student loan did not meet the SLRP policy requirements. In fact, he was advised of just the opposite. As a result, the out of pocket payments have caused a financial hardship. 3. A review of the applicant’s available service records reflects the following on: * 1 March 2002 – he enlisted in the ARNG * 13 August 2002 – he was ordered to active duty * 3 February 2003 – he was released from active duty and transferred back into the ARNG * 3 January 2004 – he was ordered to active duty * 16 March 2005 – he was released from active duty and transferred back into the ARNG * 25 October 2007 – he reenlisted for 6 years with the additional entitlement to a $15,000 bonus and SLRP not to exceed $20,000 * 29 September 2008 – he was ordered to active duty * 29 November 2009 - he was released from active duty and transferred back into the ARNG * 25 October 2014 (Order# 350-1000) – he was discharged from the ARNG 4. The applicant provides a DA Form 2823 dated 9 July 2011 wherein he provides the following chronological statement of events: a. On 25 October 2007 he reenlisted for 6 years. During the negotiation of this contract, his Retention NCO offered him a $15,000 signing bonus plus the SLRP incentive in the amount of $18,000. b. Prior to signing the contract and accepting the private student loan, he provided documentation to both his Retention NCO and the Incentives Branch representative, making them both aware of his intent to utilize the funds received under the SLRP to repay his loan. Both parties approved. c. After signing his reenlistment contract, the Retention NCO explained to him that he would have to pay his student loan out of pocket first, and then he would be reimbursed $3,000 annually for 6 years (totaling $18,000). d. He immediately began making payments towards the student loan. In October 2008, he inquired about his first installment payment ($3,000); however, during this time, his unit was in the process of deploying to Afghanistan so he was unable to complete the request prior to his departure. e. While deployed, he made contact with a 1LT (Officer in Charge of SLRP within the Education Office). Due to connectivity issues and mission requirements, he was again unable to complete the SLRP repayment paperwork. He was then advised to address this issue upon his return from deployment. f. Between February and August of 2010, after redeploying, he communicated with a Private First Class (PFC) . PFC assumed the duties previously handled by 1LT . He exchanged multiple emails with PFC during this period hoping to resolve the issue; however, he often experienced challenges both explaining the situation and reaching PFC telephonically. g. Finally, in September of 2010 he was able to reach PFC telephonically. Over conversation, PFC was unable to provide him with a direct answer regarding his loan repayment and denied his attempt to speak with her supervisor. In a subsequent call, PFC informed him that his student loans would not be repaid under the SLRP because they were non Title IV (private loans) and therefore could not be repaid by the government. He was later advised by his Platoon Sergeant to stop contacting the education office and if he needed further assistance, to initiate his request through the Inspector General (IG), to which he did. h. Upon conclusion of the IG investigation, he was advised to request an Exception to Policy as this would be his only course of action since processing payment would be in violation of the current guidance. 5. The applicant provides a DA Form 2823 dated 2 February 2013 wherein he provides the following chronological statement of events in addition to his previously provided statement: a. He has sought assistance of his congresswoman and as of February 2013, per his reenlistment contract approximately $15,000 of his student loans should have already been paid back. In absence of this, he has already been forced to pay back approximately $8,000 through monthly installments. b. Due to the conduct of many persons involved in the resolution of his case, when his current enlistment expires, he would more than likely not reenlist. 6. The applicant provides the following documents in addition to the above a: * Annex L to DD Form 4 (Student Loan Repayment Program Addendum) dated 25 October 2007 – reflective of his election to participate in the SLRP; form indicates that he already had a loan in the amount of $18,000 * Inspector General letter dated 9 July 2011- reflective of his eligibility and enrollment in the SLRP, however the denial of payment for a private loan was correctly decided upon * Memorandum for Record (Exception to Policy for SLRP) dated 6 August 2014 – reflective of his request for an exception to be made based upon the fact that he was not aware that his student loan did not meet the SLRP policy requirements * National Guard Bureau Response letter to Congressional Representative dated 28 October 2014 – reflective of the NGB response to his congressional inquiry wherein they state that he did not have any disbursed loans at the time of his reenlistment which violated the SLRP policy as private loans were not authorized under Title 10 U.S.C. Chapter 1609 section 1630 (Education Loan Repayment Program for Members of Selective Reserve) until its amendment on January of 2008. On 22 September the ARNGB Human Resources Management denied his request for an Exception to Policy. * American Education Services Transaction History Statement dated 27 October 2016 – reflective of his loan payment history from 30 November 2007 through 26 September 2016; loan origination in the amount of $18,000 * Loan Agreement with Doral Bank dated 30 November 2007 – reflective of his loan origination date, amount and finance charges totaling $32,142.50. 7. See all applicable supporting guidance below under REFERENCES. BOARD DISCUSSION: 1. The Board carefully considered the applicant’s request, supporting documents and evidence in the records. The Board considered the applicant’s statement, his record of service, the Student Loan Repayment Addendum that shows the applicant’s contracted term and the types of loans eligible for repayment, the IG response, the review by the NGB to include the date of the promissory note and the date of his separation. The Board found the applicant was eligible for SLRP, did not have a loan at the time of his enlistment and that his loan did not meet the criteria for repayment under the terms of his contract. Based on a preponderance of evidence, the Board determined that the non-payment of the applicant’s requested education debt was not in error or unjust received upon separation was not in error or unjust. 2. After reviewing the application and all supporting documents, the Board found that relief was not warranted. BOARD VOTE: Mbr 1 Mbr 2 Mbr 3 : : : GRANT FULL RELIEF : : : GRANT PARTIAL RELIEF : : : GRANT FORMAL HEARING :X :X :X DENY APPLICATION 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. 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. REFERENCES: 1. Title 10, USC, section 1552(b), provides that applications for correction of military records must be filed within three years after discovery of the alleged error or injustice. This provision of law also allows the ABCMR to excuse an applicant's failure to timely file within the three-year statute of limitations if the ABCMR determines it would be in the interest of justice to do so. 2. Title 10, USC Chapter 1609 (Education Loan Repayment Program) section 16301 states that members of Selected Reserve subject to the provisions of this section, 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, 20 U.S.C. 1087a et seq.) * any loan made under part E of such title (20 U.S.C. 1087aa et seq.) * 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. 3. You must have one or more qualifying and disbursed Title IV federal loan(s) not in default at the time of enlistment or re-enlistment/extension in order to qualify. Loans must have been disbursed prior to the date of enlistment, affiliation or re- enlistment/extension and must be at least one year old on anniversary date of the contract (unless adjusted for periods of authorized nonavailability). Loans disbursed after the date of enlistment, affiliation or re-enlistment/extension are not eligible for repayment unless you are re-enlisting or extending for a minimum six-year contract in the National Guard without a break in service from the original SLRP contract start date. The lender information must be verified annually against the NSLDS documents. The NSLDS documents must not be older than 90 days from the scheduled anniversary payment date. The National Guard will not make a payment to a Soldier or reimburse that Soldier for payment(s) made by the Soldier or by any other individual on that Soldier's behalf. All SLRP payments are paid to the financial institution only. State and private loans are not eligible for repayment under the SLRP program. 4. FY 05 SRIP Policy Guidance for 14 December 2004 – 30 September 2005 (Policy Number 05-02) states members may extend for a term of service of not less than 6 years. The SLRP amount would not exceed $18,000.00. 5. Department of Defense Instruction (DODI) 1205.21 (Reserve Component Incentive Programs Procedures), paragraph 6.2 states, as a condition of the receipt of an incentive covered by this Instruction, each recipient shall be required to sign a written agreement stating that the member has been advised of and understands the conditions under which continued entitlement to unpaid incentive amounts shall be terminated and which advance payments may be recouped. 6. Army Regulation 135-7 (Incentive Program) states that the SLRP incentive provides for the repayment by the Government of a designated portion of any outstanding loan(s) secured after 1 October 1975. Any loan made, insured or guaranteed under Part B of the Higher Education Act of 1965, or any loan made under Part E of this Act, after 1 October 1975, may be repaid. The following loans qualify for repayment: Stafford Loan Program (formerly Guaranteed Student Loans (GSL), Federally Insured Student Loans, Perkins Loan (formerly National Defense Student Loan and National Direct Student Loans (NDSL), Auxiliary Loans to Assist Students (ALAS), Supplemental Loans for Students (SLS), Consolidated Loan Program (CLP) and SMART Loans. //NOTHING FOLLOWS// ABCMR Record of Proceedings (cont) AR20170007855 6 1