ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS IN THE CASE OF: BOARD DATE: 25 September 2019 DOCKET NUMBER: AR20170010734 APPLICANT REQUESTS: in effect, an exception to policy (ETP) from recoupment of the Student Loan Program (SLRP) incentive in the Illinois Army National Guard (ILARNG). APPLICANT'S SUPPORTING DOCUMENTS CONSIDERED BY THE BOARD: * DD Form 149 (Application for Correction of Military Record) * Student Loan Aid Summary * Annex L (SLRP Addendum) * email correspondence * SLRP ETP memoranda 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 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: a. She was told that she was eligible for an SLRP when she reenlisted in 2009. She was unaware that information was not verified by the retention personnel. She is requesting full relief from the recoupment of the amount of $7,802.21, which the Defense Finance and Accounting Service paid as the SLRP inventive. She signed an Oath of Reenlistment on 24 March 2009 and the SLRP Addendum on 31 March 2009. She was told at the time that she did not qualify for a bonus; however, she would be eligible for up to $50,000.00, which would have covered her two loans, totaling approximately $35,000.00 at the time. b. This information was never verified and she was unaware of her ineligibility. Each year thereafter, she submitted the required documents for the DOD Educational Loan Repayment Program application with the unit’s Readiness Noncommissioned Officers. During a period from 2009 to 2010, she was in school and awarded payments that were paid to the school, while on active duty for operational support in the amount of $7,802.21. She is a single parent in financial hardship, attempting to keep up with tuition payments for her last minor child, and struggling to continue to make payments for her outstanding student loan. She is sincerely, praying that the Board will extend forgiveness and grant her full relief of the monetary recoupment. 3. The applicant provides copies of the following: (1) Student Loan Aid Summary, dated 31 March 2009, showing two payments totaling $7,802.21 were made to her loans. (2) Email correspondence, dated 12 October 2016, wherein the Education Service Officer advised her of the determination she was eligible for payment under the SLRP incentive because the loans were in default before and after the addendum was signed. That was a policy violation and according to her SLRP addendum, “Loans that fall into default at any time after my enlistment/reenlisted/extension will not be eligible for payment.” 4. Review of the applicant’s service record shows: a. Having prior ARNG and Army Reserve enlisted service, she reenlisted in the ILARNG on 29 October 2007. On 28 October 2008, she extended her reenlistment for 6 months. b. On 31 March 2009, she executed an Annex L for the SLRP. The addendum stated in: (1) Section II – Eligibility: she had two disbursed loans existing in the amount of $35,000.00. (2) Section VI – Statement of Understanding: she acknowledged she understood that the ARNG will not make a payment on defaulted loan(s). (3) Section VIII – Authentication: she authenticated this addendum with her signature on 31 March 2009. c. On 28 April 2009, she reenlisted in the ILARNG for 6 years. d. On 17 November 2014, she was issued a Notification of Eligibility for Retired Pay at Age 60 (20-Year Letter). e. On 28 April 2015, she was honorably retired. Her National Guard Bureau (NGB) Form 22 (Report of Separation and Record of Service) shows she completed over 20 years of service for retired pay. f. On 13 December 2016, the ILARNG requested an ETP for the applicant of full relief of recoupment of the erroneously received SLRP. The ILARNG official stated the eligibility of the applicant’s loans were not verified. Each of her loans were in default at that time; however, she still received two fiscal year payments to her lenders in the amount of $7,802.21. The applicant was unaware of the fact that she should have never been permitted to sign a reenlistment contract for that incentive. No future payments were submit after the erroneous addendum was identified. She met all other eligibility criteria for the SLRP upon enlistment. g. On 13 January 2017, the NGB denied the ETP request for the SLRP. The NGB official stated: * the ETP to retain the $50,000.00 was disapproved because the applicant’s loans went into default during the contract term which violated ARNG Selected Reserve Incentive Program Policy Number 07-06, effective 1 March 2009, with updates * the applicant’s loans were in default at the time of signing the contract and she was not eligible to receive the incentive * the State Incentive Manager would termination the incentive with recoupment effective the start of the contract h. On 17 February 2017, the NGB notified the applicant of the denial of the ETP request and monetary recoupment was required in the amount of $7,802.21. 4. DODI 1205.21 (Reserve Component Incentive Programs Procedures) requires each recipient of an incentive to sign a written agreement stating 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. The agreement must clearly specify the terms of the Reserve Service commitment that authorizes the payment of the incentive. 5. ARNG Selected Reserve Incentive Program Guidance for Fiscal Year 2007, Policy Number 07-06, effective 1 March 2009, provided specific requirements for those receiving the SLRP, and included the following: the incentive would be terminated with recoupment if the loan(s) went into default during the contract term. BOARD DISCUSSION: After reviewing the application and all supporting documents, the Board found relief was not warranted. The applicant’s contentions and the NGB’s denial memorandum were carefully considered. Based upon the preponderance of the evidence, the Board agreed the incentive was justly terminated as the loans were already in default. The Board determined there was no error or injustice in this case. 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 Army Board for Correction of Military Records (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. Department of Defense Instruction 1205.21 (Reserve Component Incentive Programs Procedures) prescribes procedures for incentive programs. Section 6.2 (Written Agreements) states, in part, as a condition of the receipt of an incentive covered by this instruction, each recipient shall be required to sign a written agreement stating 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. That agreement shall clearly specify the terms of the Reserve service commitment that authorizes the payment of the incentive to the member. 3. Army National Guard (ARNG) Selective Reserve Incentive Program Guidance for Fiscal Year 2007, Policy Number 07-06, effective 1 March 2009, provided specific requirements for those receiving the Student Loan Repayment Program (SLRP). a. The ARNG offers the SLRP as an enlistment incentive for all prior service enlistees. Payment is based upon the original principle and does not include interest. The enlistee must meet several criteria. b. The incentive would be terminated with recoupment if the loan(s) went into default during the contract term. //NOTHING FOLLOWS// ABCMR Record of Proceedings (cont) AR20170010734 4 1