Wednesday, February 25, 2009

AER -- the rest of the story

By Bill Costlow
Acting PAO

Many of you have read the recent media articles discussing Army Emergency Relief -- the story is everywhere ... The allegation was that AER is hoarding money, advocates special treatment for those who donate and works with Army leadership to 'strong-arm' Soldiers into repaying loans.

From my 22 years in the Army, I know that AER is a safety net for Soldiers in financial difficulty. AER is not a bailout: most money is loaned at zero interest. But when Soldiers don't have the ability to repay, a grant is given instead.

I thought there were some oversights in these recent reports -- so I contacted Col (Ret) Andy Cohen at AER headquarters to talk about the allegations.

AER’s formal response on the Internet is here:
http://aerhq.org/AER%20Reply%20to%20AP%20Report%20Concerning%20AER%20Operations.pdf

Here's some of what Andy told me that I didn't know:

* The AER of today is focused on saying YES to Soldiers in need. This wasn't always the case and they are actively working to change any perception to the contrary. Andy also told me that anyone who feels they haven't gotten a fair hearing from their AER counselor is encouraged to take the request to the next higher level for a second hearing.

* The investment capital (discussed in recent articles as "hoarded money") is available for support to Soldiers and Families today is $190 million. This is fully invested at all times to insure a fair rate of return. This investment portfolio provides interest and dividends which increase the level of funds available and is a ready resource for loans and grants and scholarships.

* Widowed spouses and orphans always receive grants instead of loans.

* Every combat-wounded warrior recieves an AER gift card for $200 to assist with health and comfort items.

* There was once a time when Soldiers had to wait for their car to break before they could go to AER for help. Today they can ask for preventive maintenance assistance - in Andy's words: "Now they can fix the car before the transmission falls out of the car. This is one of the improvements we've made in the way we do business and we're always looking for ways to improve."

* AER doesn't tolerate misconduct -- special favors or punishment for not donating are dealt with through a third party whistle blower program available at:
http://aerhq.org/Ethical%20Standards.asp

* If a Soldier is unable to pay back their loan, he or she can work through their chain of command to petition for the loan to be turned into a grant.

I was very impressed meeting the AER Staff and the reception they gave me when I arrived. If you have questions -- ask Andy: you'll get a straight answer. He can be reached at: mailto:andrew.cohen@aerhq.org