A good description of the different types of discharges being discussed and why they are given.
Characterization of Service. Characterization at separation is based upon the quality of the member's service, including the reason for separation and guidance below. The military determines the "quality of service" in accordance with standards of acceptable personal conduct and performance of duty for military personnel found in the Uniform Code of Military Justice (UCMJ), directives and regulations issued by the Department of Defense and the Military Departments, and the time-honored customs and traditions of military service.
The quality of service of a member on active duty or active duty for training is affected adversely by conduct that is of a nature to bring discredit on the Military Services or is prejudicial to good order and discipline, regardless of whether the conduct is subject to UCMJ jurisdiction. Characterization may be based on conduct in the civilian community, and the burden is on the respondent to demonstrate that such conduct did not adversely affect the respondent's service.
The Military considers the reasons for separation, including the specific circumstances that form the basis for the separation, on the issue of characterization. As a general matter, regulations require the military to determine characterization upon a pattern of behavior rather than an isolated incident. There are circumstances, however, in which the conduct or performance of duty reflected by a single incident provides the basis for characterization.
Honorable. The Honorable characterization is appropriate when the quality of the member's service generally has met the standards of acceptable conduct and performance of duty for military personnel, or is otherwise so meritorious that any other characterization would be clearly inappropriate. (For example, a Medal of Honor recipient would almost always receive an Honorable Discharge, unless he/she was involved in the most serious of misconduct). In the case of an Honorable Discharge, an Honorable Discharge Certificate (DD Form 256) is awarded and a notation is made on the appropriate copies of The DD Form 214/5.
General (Under Honorable Conditions). If a member's service has been honest and faithful, it is appropriate to characterize that service under honorable conditions.
Characterization of service as General (under honorable conditions) is warranted when significant negative aspects of the member's conduct or performance of duty outweigh positive aspects of the member's military conduct or performance of duty outweigh positive aspects of the record. A General (under honorable conditions) characterization of discharge may jeopardize a member's ability to benefit from the Montgomery G.I. Bill if they, in fact, had contributed. Moreover, the member will not normally be allowed to reenlist or enter a different military service.Here is a good description of the differences and types of discharges being discussed.
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“Some people spend an entire lifetime wondering if they made a difference in the world. But, an American Soldier doesn't have that problem". — President Ronald Reagan, 1985