IN THE CASE OF: BOARD DATE: 18 January 2022 DOCKET NUMBER: AR20210005091 APPLICANT REQUESTS: payment of the Loan Repayment Program (LRP). APPLICANT'S SUPPORTING DOCUMENTS CONSIDERED BY THE BOARD: * DD Form 149 (Application for Correction of Military Record) * DD Form 4 (Enlistment/Reenlistment Document – Armed Forces of the United States) * DA Form 3286 (Statement for Enlistment – U.S. Army Enlistment Program – U.S. Army Delayed Enlistment Program) * Five DA Forms 67-10-1 (Company Grade Plate (O1 – O3; WO1 – CW2) Officer Evaluation Report (OER)) FACTS: 1. The applicant did not file within the three-year time frame provided in Title 10, United States Code, 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 he currently serves on active duty. He had some discussions with his education center about his SLRP. He believes there were several e-mails sent to him to initiate his payment during a 2-year period. He did not have access to his e- mail upon enlistment. Immediately after graduating basic training, he transitioned to Officer Candidate School (OCS) where military computers were rarely used. 3. The applicant executed a DA Form 3286 (Statement for Enlistment – U.S. Army Enlistment Program – U.S. Army Delayed Enlistment Program) on 8 February 2010 for the U.S. Army Delayed Entry Program. a. His enlistment in the U.S. Army Reserve (USAR) obligates him to a total of 8 years of service. He will be assigned to the USAR Control Group (Delayed Entry). During which time he will be in a non-pay status and will not be authorized to participate in any Reserve training. b. He volunteers to serve on active duty for 2 years in any job assignment specified by the Army. Such period to begin within 288 days unless he enlists into the Regular Army, or his granted further delay by proper authority. c. In lieu of performing the active duty specified above, he may enlist into the Regular Army for a period of 3 years and 00 weeks. Upon enlistment into the Regular Army, he will be enlisted into the program(s) listed below: * 9D – U.S. Army Officer/Warrant Officer Enlistment Program * 9C – U.S. Army Incentive Enlistment Program (U.S. Army Loan Repayment Program) d. The date of his enlistment into the Regular Army is scheduled for 24 November 2010. He is enlisting for OCS. e. The incentive above is the U.S. Army Loan Repayment Program (LRP). He understands that he must disenroll from the GI Bill in order to qualify for this program. Disenrollment must be accomplished at the time he enters onto active duty. If he fails to complete the disenrollment portion, he will not be eligible for the LRP and will become automatically enrolled in the GI Bill. f. He understands that under the LRP, the government will repay a designated portion of any loan he incurred that was made, insured or guaranteed, under Part B of the Higher Education Act of 1975 or any loan under Part E of such act after 1 October 1975 and before he enlists into the Regular Army. g. He understands that only certain loans qualify for the LRP program. Loans which qualify for this program include those which are made, insured or guaranteed under Part B, Part D, or Part E of the Higher Education Act of 1985. h. Enlistment for the LRP ensures he, provided he meets and maintains the prescribes prerequisites, that the portion or amount of loan that may be repaid is 33 1/3 or $1,500, whichever is greater, of the unpaid principal balance for each year of service completed. i. Repayment will be made only after each successful year of active duty that he performs commencing on the date of his enlistment into the Regular Army. j. He fully understands that he must secure a military deferment or maintain his account in good standing until such time as repayment is started. k. He understands that repayment amounts paid by the government are subject to Federal and State income taxes as taxable income each year payment is made. 4. He enlisted into the Regular Army on 24 November 2010. He completed basic combat training as a 09S (Officer Candidate) and was honorably discharged to accept an appointment as a commissioned or warrant officer in the Army on 25 May 2011. 5. On 26 May 2011, he was appointed as a commissioned officer in the Regular Army and was assigned into the Field Artillery branch. He currently serves on active duty. 6. The applicant provides his OERs, which show his duty position, description, and performance evaluations while he has served on active duty. 7. An advisory opinion was received from the U.S. Army Human Resources Command (HRC) on 4 August 2021 in the processing of this case. The Chief, Army Education Branch recommends approval of the applicant’s request for LRP to pay on his approved student loans. a. Under ideal circumstances, the Army will repay up to 33 1/3 or $1,500, whichever is greater, toward the remaining original unpaid principal balance (less taxes) on a Soldier’s qualifying student loan(s) after each completed year of active duty, for up to 3 years. The maximum total loan repayment amount is $65,000. Authorized LRP payments are considered taxable income in the year they are made. The U.S. Army does not assume the Soldier’s (the participant or borrower in this case) loan; the Soldier remains responsible for the status of the loan. Therefore, the Soldier must keep the LRP processing officer informed of any changes to the loan. Additionally, regulation directs principal payments only and precludes any made towards interest, fees, and loans in default, or reimbursements back to the Soldier for payments made directly to the lender(s). Finally, the regulation makes no provisions for waiving these requirements. b. The applicant is eligible for this program because their records indicate he met the eligibility criteria and contracted as an officer in the Regular Army on 24 November 2010. Their records indicate that they attempted to contact him on numerous occasions via the military email address listed in his official file. Since the Army does not assume the loan, the applicant was responsible for ensuring his loan holder(s) completed and returned a signed and verified Department of Defense Form 2475 to their office. Without this documentation, they were unable to initiate the loan repayment process. c. The HRC advisory official requested the applicant provide additional documents. d. Again, they cannot pay on loans that have been taken out after the applicant came on active duty. Also, once they receive all requisite program paperwork and it is in order, they will authorize the Defense Finance and Accounting Service (DFAS) to make a single combined payment towards the applicant’s loans. They will then send him a confirmation email after they have completed their tasks. e. Payments are subject to federal and state taxes and are assessed as taxable income in the year the LRP repayment is made. Title 10, Section 2171, U.S.C. governs the LRP. A separate statement of amount paid (W-2) is provided to the Soldier at tax year-end by DFAS. 8. On 9 August 2021, the applicant was provided with a copy of the advisory opinion for acknowledgement and/or response. He did not respond. 9. By regulation, LRP is an enlistment incentive designed to increase Regular Army test score category I-IIA accessions. To be eligible, the Soldier must: * be a non-prior service accession * enlisted between 1 December 1980 through 30 September 1981 or after 30 September 1982 * enlisted possessing a high school diploma * enlist for no less than 3-year term of service * obtain an AFQT score that meets recruitment requirements at time of entry onto active duty * receive a loan that was made, insured, or guaranteed under Title IV, Part B, D, or E of the Higher Education Act before entering active duty; the loan must not be in default and must remain in good standing while on active duty BOARD DISCUSSION: After reviewing the application, all supporting documents, and the evidence found within the military record, the Board found that relief was not warranted. The applicant’s contentions, the military record, and regulatory guidance were carefully considered. Board members agreed that his application lacks additional and required paperwork. The Board agreed with the HRC advisory official that the applicant must provide additional documents. Since the Army does not assume the loan, the applicant was responsible for ensuring his loan holder(s) completed and returned a signed and verified Department of Defense Form 2475 to their office. Without this documentation, they were unable to initiate the loan repayment process. The Army cannot pay on loans that have been taken out after the applicant came on active duty. Also, HRC receives all requisite program paperwork and it is in order, they will authorize the Defense Finance and Accounting Service (DFAS) to make a single combined payment towards his loans. They will then send him a confirmation email after they have completed their tasks. The applicant was provided with a copy of the HRC advisory opinion informing him of what is required but he failed to respond. BOARD VOTE: Mbr 1 Mbr 2 Mbr 3 : : : GRANT FULL RELIEF : : : GRANT PARTIAL RELIEF : : : GRANT FORMAL HEARING XX: XX: XX: 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, United States Code, section 1552(b), provides that applications for correction of military records must be filed within 3 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 3-year statute of limitations if the ABCMR determines it would be in the interest of justice to do so. 2. Army Regulation 621-202 (Army Educational Incentives and Entitlements) establishes a reference for educational incentives and entitlements authorized by public law. Chapter 5 covers Regular Army Loan Repayment Program (LRP) processing. It states LRP is an enlistment incentive designed to increase Regular Army test score category I-IIA accessions. To be eligible, the Soldier must: * be a non-prior service accession * enlisted between 1 December 1980 through 30 September 1981 or after 30 September 1982 * enlisted possessing a high school diploma * enlist for no less than 3-year term of service * obtain an AFQT score that meets recruitment requirements at time of entry onto active duty * receive a loan that was made, insured, or guaranteed under Title IV, Part B, D, or E of the Higher Education Act before entering active duty; the loan must not be in default and must remain in good standing while on active duty //NOTHING FOLLOWS// ABCMR Record of Proceedings (cont) AR20210005091 1 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS 1