IN THE CASE OF: BOARD DATE: 27 April 2022 DOCKET NUMBER: AR20210010307 APPLICANT REQUESTS: remission/cancellation of his Regular Army (RA) Student Loan Repayment Program (SLRP) debt. APPLICANT'S SUPPORTING DOCUMENTS CONSIDERED BY THE BOARD: * DD Form 149 (Application for Correction of Military Record) * USACC Form 597-6 (SLRP Addendum to Army Senior Reserve Officers’ Training Corps (SROTC) Cadet Contract) 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: a. He is requesting relief from $30,810.00 in federal student loans, for the period from August 2007 to May 2011. This requested relief is in accordance with the SRLP contract, dated 28 February 2011. He entered into the SLRP prior to commissioning from the University of Maine in May 2011. The requirements to enter into repayment were not clear and he assumed that there were no additional requirements for the disbursement of funds to repay the federal student loans in addition to the 2 years Additional Active Duty Service Obligation (ADSO) as stated within the SLPR contract. After applying for a federally backed Department of Veterans Affairs (VA) loan in April 2021, he was informed he had student loans in default after the underwriter pulled the VA required Credit Alert Verification Reporting System. b. After inquiring through the Department of Education, it was confirmed there was no repayment on the loans and they were in default. In order to have the loans in good standing, he executed a Federal Direct Consolidation in June 2021. He is currently on active duty and the SLRP contract remains in his permanent record. 3. The applicant provides his USACC Form 597-6, dated 28 February 2011. 4. Review of the applicant’s service records show: a. On 28 February 2011, he executed and signed an USACC Form 597-6. He indicated on the form: (1) As an ROTC Cadet, he agreed to meet and maintain the requirements outlined in his ARMY ROTC Contract (DA Form 597 or 597-3). (2) He had accepted the SLRP and understood that an ADSO would be incurred upon repayment of any of his qualifying loans and the ADSO was based on amount repaid as followed: up to $25,000.00, incurred a 1 year ADSO; $25,001.00 to $45,000.00, incurred a 2-year ADSO; and $45,001.00 to $65,000.00, incurred a 3-year ADSO. (3) That ADSO was consecutive to any other ADSO incurred from any other programs. If he failed to fulfill any part of his military service obligation (MSO) or active- duty service obligation (ADSO, if applicable), outlined in his Army ROTC Contract to include any ADSO incurred from loans repaid after he was commissioned, he would be required to reimburse the United States government through repayment of an amount of money, plus interest, equal to the entire amount paid by the United States. b. He was commissioned in the RA, as a second lieutenant, on 21 May 2011. c. Orders Number 061-377, published by the U. S. Army Garrison, Fort Leavenworth, KS on 2 March 2021, announced his permanent change of station to Fort Bragg, NC, with a reporting date of 15 July 2021. He is currently serving in an active status. 5. On 5 December 2022, the Acting Chief, Incentives and Budge Branch Enlisted Accessions Division, Office of the Deputy Chief of Staff, G-1, provided an advisory opinion in the processing of this case. The G-1 official stated: a. The applicant requested relief of a debt based upon not understanding additional requirements for disbursement of funds to repay his federal student loans. They reviewed his records in coordination with the Army Education Incentives Branch, U. S. Army Human Resource Command (HRC). On 28 February 2011, he signed a SLRP contract. The previous Army Education Incentives Branch Chief, HRC, had repeatedly tried to contact the applicant to initiate the RA, Loan Repayment Program (RA LRP) reimbursement process; however, there was no response from him. He was eligible for that program because records indicated he met the eligibility criteria and contracted as an officer in the RA on 18 May 2011. The Army Education Incentives Branch, HRC, attempted to contact him on numerous occasions (28 December 2011, 15 October 2012, and 18 July 2013), via the military email address listed in his official file. b. Since the U.S. Army did not assume the loan, he was responsible for ensuring his loan holder(s) completed and returned a signed and verified DD Form 2475 (DoD Educational Loan Repayment Program Annual Application) to their office. Without that documentation, HRC, was unable to initiate the loan repayment process. They recommend relief for his debt incurred, and coordination with the Army Education Incentives Branch, HRC. 6. On 13 January 2022, he was provided a copy of advisory opinion for his acknowledgement and/or rebuttal. This is no indication of his response. 7. By Title 10, USC, section 2005 (Advanced education assistance: active duty agreement; reimbursement requirements), the Secretary concerned may require, as a condition to the Secretary providing advanced education assistance to any person, that such person enter into a written agreement with the Secretary concerned under the terms of which such person shall agree: a. To complete the educational requirements specified in the agreement and to serve on active duty for a period specified in the agreement; b. That if such person failed to complete the education requirements specified in the agreement, such person would serve on active duty for a period specified in the agreement; c. That if such person does not complete the period of active duty specified in the agreement, or does not fulfill any term or condition prescribed, such person shall be subject to the repayment provisions of Title 37, USC, section 303a(e); and d. To such other terms and conditions as the Secretary concerned may prescribe to protect the interest of the United States. 8. By Army Regulation (AR) 37-104-3 (Finance Update), allows for recoupment of educational expenses (e.g., SROTC, United States Military Academy, and advanced civilian schooling) under a previous agreement when obligated active duty service had not been completed. 9. By Department of Defense Financial Management Regulation: a. A member of the Uniformed Services who enters into a written agreement with specified service conditions for receipt of a bonus, special or incentive pay, educational benefits, stipend, or similar payment (hereinafter referred to as "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. If the member fails to fulfill the service conditions specified in the written agreement for the pay or benefit, then the pay or benefit may be terminated and the member may be required to repay an amount equal to the unearned portion of the pay or benefit. b. Repayment action will not be pursued in situations in which the member's inability to fulfill specified service conditions related to a pay or benefit is due to circumstances determined reasonably beyond the member's control. 10. By AR 600-4 (Remission or Cancellation of Indebtedness), a Soldier’s debts to the U.S. Army may be remitted or canceled on the basis of cases arising from payments made in error to a Soldier, debts acknowledged as valid, and debts incurred while serving on active duty. BOARD DISCUSSION: 1. After reviewing the application, all supporting documents, and the evidence found within the military record, the Board found that relief was warranted. The Board carefully considered the applicant's record of service, documents submitted in support of the petition and executed a comprehensive and standard review based on law, policy and regulation. Upon review of the applicant’s petition, available military records and the Acting Chief, Incentives and Budge Branch Enlisted Accessions Division, Office of the Deputy Chief of Staff, G-1 advisory opinion, the Board concurred with the advising official finding he was eligible for SLRP program because records indicated he met the eligibility criteria and contracted as an officer in the RA on 18 May 2011. Evidence in the record show the Army Education Incentives Branch, HRC, attempted to contact the applicant on numerous occasions (28 December 2011, 15 October 2012, and 18 July 2013), via the military email address listed in his official file. 2. The Board determined since the U.S. Army did not assume the loan, the applicant was responsible for ensuring his loan holder(s) completed and returned a signed and verified DD Form 2475 (DoD Educational Loan Repayment Program Annual Application) to their office. Without that documentation, HRC, was unable to initiate the loan repayment process. Based on this the Board granted relief for his debt incurred, and recommended coordination with the Army Education Incentives Branch, HRC. BOARD VOTE: Mbr 1 Mbr 2 Mbr 3 X X X GRANT FULL RELIEF : : : GRANT PARTIAL RELIEF : : : GRANT FORMAL HEARING : : : DENY APPLICATION 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 records of the individual concerned be corrected to show remission/cancellation of his Regular Army (RA) Student Loan Repayment Program (SLRP) debt. 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 (USC), 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 Army Board for Correction of Military Records (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. Title 10, USC, section 2005 (Advanced education assistance: active-duty agreement; reimbursement requirements), provides that the Secretary concerned may require, as a condition to the Secretary providing advanced education assistance to any person, that such person enter into a written agreement with the Secretary concerned under the terms of which such person shall agree: a. To complete the educational requirements specified in the agreement and to serve on active duty for a period specified in the agreement; b. That if such person failed to complete the education requirements specified in the agreement, such person would serve on active duty for a period specified in the agreement; c. That if such person does not complete the period of active duty specified in the agreement, or does not fulfill any term or condition prescribed, such person shall be subject to the repayment provisions of Title 37, USC, section 303a(e); and d. To such other terms and conditions as the Secretary concerned may prescribe to protect the interest of the United States. 3. Army Regulation (AR) 37-104-3 (Finance Update), in effect at the time, provided policies and provisions for entitlements and collections of pay and allowances of military personnel. Chapter 59 provided for recoupment of educational expenses (e.g., SROTC, United States Military Academy, and advanced civilian schooling) under a previous agreement when obligated active-duty service had not been completed. 4. Department of Defense Financial Management Regulation, volume 7A (Military Pay Policy and Procedures – Active Duty and Reserve Pay), chapter 2 (Repayment of Unearned Portion of Bonuses and Other Benefits), section 0201 (General Provisions), provides that a member of the Uniformed Services who enters into a written agreement with specified service conditions for receipt of a bonus, special or incentive pay, educational benefits, stipend, or similar payment (hereinafter referred to as "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. If the member fails to fulfill the service conditions specified in the written agreement for the pay or benefit, then the pay or benefit may be terminated and the member may be required to repay an amount equal to the unearned portion of the pay or benefit. Such repayment will be pursued unless the member's failure to fulfill specified service conditions is due to circumstances determined reasonably beyond the member's control. Conditions under which repayment will not be sought are set forth in section 0202. 5. Department of Defense Financial Management Regulation, volume 7A, chapter 2, section 0202 (Repayment and Non-Repayment Conditions), provides that, as a general rule, repayment action will not be pursued in situations in which the member's inability to fulfill specified service conditions related to a pay or benefit is due to circumstances determined reasonably beyond the member's control. In addition, the Secretary of the Military Department concerned has the discretion to, at some point in the process, render a case-by-case determination that the member's repayment of, or the Military Department's full payment of an unpaid portion of, a pay or benefit is appropriate based on one or more of the following: * contrary to a personnel policy or management objective * against equity and good conscience * contrary to the best interest of the United States 6. AR 600-4 (Remission or Cancellation of Indebtedness), states a Soldier’s debts to the U.S. Army may be remitted or canceled on the basis of cases arising from payments made in error to a Soldier, debts acknowledged as valid, and debts incurred while serving on active duty. The regulation states in: a. Paragraph 1-12 – determinations will be made on injustice and hardship based on the information received and considers factors such as: * the Army’s policy in the area of indebtedness to the U.S. Army * the Soldier’s awareness of policy and procedures * the Soldier’s monthly income and expenses * the Soldier’s contribution to the indebtedness to the U.S. Army by not having the situation corrected b. Paragraph 1-13 – the application must contain evidence that the applicant did not know or could not have known of error and the applicant inquired of a proper authority and was told the payment was correct. //NOTHING FOLLOWS// ABCMR Record of Proceedings (cont’d) AR20210010307 1 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS 1