ARMY BOARD FOR CORRECTION OF MILITARY RECORDS

RECORD OF PROCEEDINGS

		
		IN THE CASE OF:

		BOARD DATE:  14 February 2022

		DOCKET NUMBER:  AR20210009786


APPLICANT REQUESTS:  in effect, payment of the remaining sum of his Student Loan 
Repayment Program (SLRP) in the amount of $31,304.22. 

APPLICANT'S SUPPORTING DOCUMENTS CONSIDERED BY THE BOARD:

*	DD Form 149 (Application for Correction of Military Record)
*	DD Form 4 (Enlistment/Reenlistment Document), dated 10 December 2010
*	Annex L to DD Form 4, dated 10 December 2010
*	DD Form 2475 (Department of Defense (DOD) Educational Lean Repayment 
Program Annual Application), dated 15 October 2011
*	Federal Student Aid documents, dated 14 June 2013
*	DD Form 2475, dated 3 December 2015
*	DD Form 2475, dated 17 November 2016
*	Navient Loan Details as of 24 August 2020
*	Loan Summary
*	Federal Family Education Loan Program (FFELP) documents
*	Great Lakes Educational Lean Services Disbursement document
*	Federal Student/Financial Aid Review documents


FACTS:

1.  The applicant states:

a.	His Ohio Army National Guard (OHARNG) enlistment contract included a SLRP 
incentive, which promised to pay $50,000 of his $62,688 student loan debt. The majority 
of the 15 loans used to determine the total amount in the contract were later deemed 
not in compliance. 

b.	The duty to validate the eligibility of the loans is that of the Military Entrance 
Processing Station (MEPS). Upon completion of his contract obligation, his loans were 
only paid in the amount of $ 18,696.88 (including taxes).

c.	Following the completion of payments, he filed an Inspector General (IG) 
complaint in an attempt to recoup the lost incentives. The IG found that the loans 
belonging to Navient (then Sallie Mae) were deemed not in compliance, which caused 
the change in payments. The office also found that validating the eligibility of loans fell 
on MEPS and not the recruit. 

d.	At no point in his career was he counseled or presented with a change to his 
original contract. Prior to being presented with the findings, He was given no course of 
action to recoup the unpaid amount.

e.	He met his contracted service obligations and believes the Army should do the 
same.

f.	He requests that ABCMR order a payment of the remainder amount of 
$31,304.22 to himself in order to match the contracted incentive agreement.

4.  The applicant provides:

a.	DD Form 2475 (DOD Educational Loan Repayment Program Annual 
Application), dated 15 October 2011, shows the applicant completed the application for 
the yearly payment.

b.	The applicant provides his Federal Student Aid documents, which shows his 
student loan amounts.

c.	DD Form 2475, dated 3 December 2015 and 17 November 2016, shows the 
applicant completed the applications for the yearly payment.

d.	Navient Loan Details as of 24 August 2020, shows his loans in the amount of 
$2910.00, $2300.00, and $9,500.00 were paid in full, and the loans in the amount of 
$2,149.73, and $2,149.73, were still being repaid. 

e.	Loan Summary, dated 4 October 2019, shows the applicant’s loans at Nelnet, 
that he had a balance of $4,348.19 left on a student loan.

f.	Federal Family Education Loan Program (FFELP) documents, shows his master 
promissory note for a loan and that he wanted to pay unsubsidized interest on his loan 
while he was in school. He had loans for the following:

*	Total Stafford Subsidized: $16,421.00
*	Federal Perkins: $2,753.00
*	Total: $19,174.00

g.	Great Lakes Educational Lean Services Disbursement document, shows his loan 
from the Great Lakes Educational Loan Services for his Federal Stafford loan was in the 
amounts of $1,273.61, $1,272.64. $1,697.50, $1697.50, $2,750.00, $2,750.00, 
$2,750.00, and $2,750.00.

h.	Federal Student/Financial Aid Review documents shows he had total Stafford 
Subsidized loans in the amounts of $10,911.00 and $7,237.00.

i.	It is unclear in the documents the applicant has provided, which loans were paid 
not paid, and in what amounts, under the SLRP.

3.  The applicant’s service record shows:

a.	He is still in the OHARNG in an Active Guard Status.

b.	DD Form 4 (Enlistment/Reenlistment Document), reflects he enlisted in the 
OHARNG on 10 December 2010, for a period of 8 years. 

c.	Annex L to DD Form 4, dated 10 December 2010, shows in:

		(1)	Section II (Eligibility): He met the eligibility criteria as a non-prior service 
(NPS) and he had 15 disbursed loans existing in the amount of $62,688.00. (the total of 
the loan not to exceed $50,000.00).

		(2)	Section III (Entitlement and Payments): “the Government will repay a 
designated portion of any outstanding loan(s) that I have secured since 1 October 1975. 
The loan(s) must have been made, insured, or guaranteed under Part B of the Higher 
Education Act of 1965 (Guaranteed Student Loans/Federally Insured Student Loans), or 
any loan made under Part E of such act (National Direct Student Loans). Loans eligible 
for the Enlisted Loan Repayment Program are--Stafford Loans (subsidized), Stafford 
Loans (unsubsidized), Federally Insured Student Loans, Perkins Loans, Auxiliary Loans 
to Assist Students (ALAS), Supplemental Loans for Students (SLS), Consolidated Loan 
Program (CLP) and (SMARD, William D. Ford Federal Direct Loan Program. (State 
Student Loans are not eligible for the Student Loan Repayment Program).

		(3)	Loans must be one-year old or older on my first anniversary eligibility date to 
qualify for this program. Loans that fall into default at any time after my 
enlistment/reenlistment/extension will not be eligible for repayment. Loans that are in 
default at the time of my enlistment/reenlistment/extension will not be eligible for 
repayment. 

		(4)	The portion of the ELRP ($50,000) that may be repaid annually on any 
qualifying loan(s) will not exceed 15 percent (not to exceed $7,500 per year) of the total 
of all loan principal or $500, whichever is greater. The annual payment will include 
interest as long as the combined principal and interest does not exceed the maximum 
authorized under law. Payment will be processed on the anniversary date of my 
enlistment for each satisfactory year of service.

		(5)	Section VII (Statement of Understanding): l will furnish the MEPS Counselor 
with a copy of all of my promissory notes and proof of disbursement upon enlistment. A 
payment may not be authorized on loans where I did not submit my promissory notes 
and proof of disbursement at the time of enlistment.

		(6)	Each year (90 days before my anniversary date) I will contact my unit to 
request payment on my loan(s). I am responsible for completing the required 
documents (DD Form 2475) for payment in accordance with regulation AR 135-7.

		(7)	It is my responsibility to know my account number and lender's name and 
address. It is not uncommon to have loans sold to various lenders. I should receive a 
letter from the new loan holder if this occurs and if so, I will provide it to my unit 
commander or his representative.

		(8)	My loan is not the responsibility of the government. I am responsible for 
maintaining my loan account(s) in good standing. lf l do not, my loan(s) will go into 
default. The ARNG will not make a payment on defaulted loan(s) and my credit rating 
may be damaged. l must coordinate forbearance and deferments with my lenders. l will 
make arrangements for the lump sum payment, which the ARNG makes each year to 
be applied to future installments. l understand that lenders do not have to grant 
forbearance based on my enrollment in the ELRP.

		(9)	My enlisted loan repayment program is taxable income. I will receive an 
additional W2 Form from the government indicating the amount of payment to the 
lender. I am responsible for the taxes on the payment.

		(10)	If I encounter problems with my enlisted ·loan repayment, it is my 
responsibility to contact my unit commander or his representative for guidance.

		(11)	I understand that Plus Loans are not authorized for payment.”

		(12)	The applicant signed and dated the Annex on 10 December 2010.

?
BOARD DISCUSSION:

After reviewing the application, all supporting documents and the evidence found within 
the military record, the Board determined that relief was not warranted. The Board 
carefully considered applicant’s contentions, military record, regulatory guidance and 
advisory opinion.  The Board reviewed and concurred with the opinion in that the 
applicant had the responsibility to review the terms and conditions of the contract. The 
Board further agreed that the Army met its obligation to pay those loans which were in 
its scope of authority to do so. Based on the preponderance of the evidence available 
for review, the Board determined the evidence presented insufficient to warrant a 
recommendation for relief. 


































BOARD VOTE:

Mbr 1	Mbr 2	Mbr 3

:		:	:	GRANT FULL RELIEF

:		:	:	GRANT PARTIAL RELIEF

:	

: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.  Department of Defense Instruction 1205.21 (Reserve Component Incentive 
Programs Procedures) prescribes policy, assigns responsibilities, and provides 
procedures for management of the Reserve Component incentive programs.  

     a.  Section 6.2 (Written Agreements) states that 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.

     b.  Enclosure 8.1.4 (Written Agreements – General Education Loan Repayment 
Program) states eligibility under this program continues unless or until an individual 
becomes a simultaneous member of an authorized officer commissioning program 
drawing a stipend.      

2.  National Guard Regulation 600-7 (Selected Reserve (SELRES) Incentive Programs) 
governs incentive policies, procedures, and eligibility criteria for persons entering into an 
incentive agreement.  Paragraph 1-21 (14) states, enlisted Soldiers who enter an 
authorized commissioning program as a non-scholarship recipient and/or accept an 
appointment or commission as an officer or warrant officer in a SELRES may continue 
to receive SLRP payments as stipulated in their original contract so long as they remain 
otherwise qualified.

3.  Title 10, USC, section 16301 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 (20 U.S.C. 1071 et seq.); 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.); or 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.  Repayment of any such loan shall be made on 
the basis of each complete year of service performed by the borrower.

4.  Army Regulation 135-7 (Incentive Programs) restricts the SLRP to those Reservists 
who either enlist, reenlist, or extend 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, 
reenlistment, or extension, and an SLRP Addendum must be executed at that time.  

	a.  The SLRP provides for the repayment by the Government of a designated portion 
of any outstanding student loan(s) secured after 1 October 1975. The loan amount to be 
repaid is 15 percent of the original balance of the loan plus accrued interest not paid by 
the Department of Education, or $500 plus the accrued interest not paid by the 
Department of the Education, whichever is greater. Payments will be made for each 
year of satisfactory service in the Selected Reserve.  

	b.  To be eligible for the SLRP incentive, a person must contractually obligate 
himself/herself to serve satisfactorily, must serve in a Reserve unit for a full term of the 
contractual agreement, and must further obligate himself or herself to continue to serve 
in the same component and the same MOS unless excused for the convenience of the 
Government. Each completed satisfactory year of service performed under this SLRP 
agreement establishes an anniversary date. Any qualifying loan that is at least 1 year 
old may then be paid in accordance with the terms of this educational enlistment 
incentive.  

5.  Army Regulation 621-202 (Army Educational Incentives and Entitlements) paragraph 
6-2 (Eligibility) states an eligible Soldier is one who executes NGB Form 600–7–5–R–E 
on the same date of the Service contractual agreements. Once a Soldier has executed 
an ARNG addendum to participate in the SLRP, the provisions of the ARNG addendum 
will remain in force until the earlier occurrence of one of the following: (a) Participation in 
the SLRP is terminated in accordance with this regulation. (b) The maximum SLRP 
benefit as appropriate has been paid.

6.  ARNG Selected Reserve Incentive Program (SRIP) Guidance for Fiscal Year (FY) 
2007, 2008, and 2009, 10 August 2007-30 September 2009 (Policy Number 07-06) with 
updates, dated 10 August 2007, updated on 17 February 2009 and in effect at the time 
of the applicant's enlistment, states in paragraph 9 (Enlisted SLRP) that no SLRP 
contract may exceed $50,000, and payments on loans cannot exceed the amount 
authorized under the initial contract. Applicants/Soldiers must have one or more 
qualifying, and disbursed loans at the time of enlistment and Soldiers must enlist into an 
MTOE or deploying TDA unit. Any Soldier who initially contracts for the SLRP on or 
after the effective date of this memorandum may continue SLRP eligibility by 
immediately extending for a period of not less than 6 years after the current contract 
term has expired. These Soldiers may continue to extend in this manner until they reach 
the maximum dollar amount authorized on their initial SLRP contract.  

7.  The Office of the Under Secretary of Defense published a memorandum, dated 21 
May 2008, subject: Repayment of Unearned Portions of Bonuses, Special Pay, and 
Educational Benefits or Stipends. This memorandum states, "A member who enters into 
a written agreement with specified conditions for receipt of a pay or benefit, is entitled to 
the full amount of the pay or benefit if the member fulfills the conditions of that pay or 
benefit.  The Deputy Secretary of Defense Policy Memorandum recognized that, at the 
time, members were subject to statutory repayment for any unearned portion of a pay or 
benefit, as appropriate."

8.  Title 10, U.S. Code, section 1552, the law which governs the operation of this Board, 
states "The Secretary may pay, from applicable current appropriations, a claim for the 
loss of pay, allowances, compensation, emoluments, or other pecuniary benefits, or the 
repayment of a fine or forfeiture, if, as a result of correcting a record under this section, 
the amount is found to be due the claimant on account of his or another's service in the 
Army, Navy, Air Force, Marine Corps or Coast Guard, as the case may be."

//NOTHING FOLLOWS//

ABCMR Record of Proceedings (cont)	AR20210009786
	
1

1