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AF | BCMR | CY2001 | 0003177
Original file (0003177.doc) Auto-classification: Approved

                            RECORD OF PROCEEDINGS
         AIR FORCE BOARD FOR CORRECTION OF MILITARY RECORDS

IN THE MATTER OF:      DOCKET NUMBER:  00-03177
            INDEX CODE:  113.00

            COUNSEL:  NONE

            HEARING DESIRED:  NO


_________________________________________________________________

APPLICANT REQUESTS THAT:

Recoupment of all or part of the funds for his two-year  participation
in the Health Profession Scholarship Program be waived.
_________________________________________________________________

APPLICANT CONTENDS THAT:

He does not dispute the debt.  His wife’s medical  condition  resulted
in his decision to separate from the Air Force.  Due  to  his  current
financial situation, he does not know how he will be able to repay the
debt.

In support of his appeal, the applicant provided a personal  statement
(Exhibit A).
_________________________________________________________________

STATEMENT OF FACTS:

The relevant facts pertaining to this application are contained in the
letter  prepared  by  the  appropriate  office  of  the   Air   Force.
Accordingly, there is no need to recite these facts in this Record  of
Proceedings.
_________________________________________________________________

AIR FORCE EVALUATION:

The Civilian Institution Programs, AFIT/CIM, stated that the applicant
was a student in the Armed Forces Health Professions  Scholarship  and
Financial Assistance Program (AFHPS/FAP) effective 5 Aug 1997 and  had
an anticipated graduation date of  31 May  2001.   The  applicant  was
placed on an academic leave of absence for 12 months beginning 26  Aug
1999 due to a  failing  score  on  part  one  of  the  national  board
examination.  His graduation date was adjusted to 31  May  2002.   The
applicant was dismissed from medical school for academic reasons on 26
Jan 2000.  As a result, the applicant was withdrawn from AFHPS&FAP and
his case was forwarded to the Air  Reserve  Personnel  Center,  Health
Services Division, (ARPC/SGX) for further evaluation of his status  in
the Air Force Reserves.  Discharge action  was  initiated  on  15  Mar
2000; and, on 21 Mar 00, the applicant submitted his resignation  from
all appointments and requested a waiver of all or  part  of  the  HPSP
debt.  ARPC/SGX forwarded  the  applicant’s  case  to  the  Air  Force
Personnel Center (AFPC/DPAME) for possible accession on  active  duty.
DPAME subsequently confirmed that the applicant could not be  utilized
on active duty and recommended  discharge  action.   On  12 Jun  2000,
ARPC/CC recommended to  the  Secretary  of  the  Air  Force  Personnel
Council (SAFPC) that the applicant’s resignation be  accepted,  he  be
given an honorable discharge, and reimbursement of $76,623.85 expended
for his educational expenses.  On 26 Jun 2000, the applicant  received
notification that, on 21 Jun 2000, the  Secretary  of  the  Air  Force
(SAF) accepted his resignation and directed he be honorably discharged
from all appointments held in the Air Force, effective  23  Jun  2000.
SAF did not excuse any indebtedness incurred to the government,  which
totaled $76,623.85 ($50,831.24 for educational expenses and a  stipend
of $25,792.61).

CIM stated that SAF is the sole authority for release of  active  duty
obligations specified in the contract and for directing recoupment  of
the total cost of advanced education aid by the US Government.  SAF or
his designee is also the final authority  that  may  waive  the  debt.
AFIT concurs with the direction of SAF to recoup funds expended on the
applicant’s behalf (Exhibit C).
_________________________________________________________________

APPLICANT'S REVIEW OF AIR FORCE EVALUATION:

A copy of the Air Force evaluation was forwarded to  applicant  on  19
January 2001 for review and response.  As of this  date,  no  response
has been received by this office (Exhibit D).

A redacted copy of a recent decision made by the  Assistant  Secretary
(SAF/MI)  on  a  similar  case  was  forwarded  to  the  applicant  on
23 February 2001 for review and response within 30 days.  As  of  this
date, no response has been received (Exhibit E).

Pursuant to the  Board’s  request  for  current  financial  data,  the
applicant  provided  personal  statements,  with  pertinent  financial
documentation  in  support  of  his  request.   A  complete  copy   of
applicant’s submission is appended at Exhibit G.
_________________________________________________________________

THE BOARD CONCLUDES THAT:

1.  The applicant has exhausted all remedies provided by existing  law
or regulations.

2.  The application was timely filed.

3.  Sufficient relevant evidence has been presented to demonstrate the
existence of probable error or  injustice.   The  case  in  which  the
former SAF/MI overturned a Board’s recommendation involving recoupment
of educational benefits has been noted.  However, the circumstances of
that case appear different from the one before this panel.

4.  After reviewing the applicant’s submission  and  the  evidence  of
record, the Board majority believes that it  is  in  the  interest  of
justice to waive any requirement  that  the  applicant  reimburse  the
government for funds expended on  his  Health  Profession  Scholarship
Program (HPSP) education.  The applicant was in  his  second  year  of
participation in the HPSP when  he  was  withdrawn  from  the  program
because of poor academic performance and ultimately separated, with  a
debt to the government.  While there is no disputing the fact that the
applicant did accrue a debt to the government for his  education,  the
Board majority noted  that  his  wife  suffers  from  recurrent  major
clinical depression, he has two children, over $100,000 in debts,  and
he has  been  supporting  his  family  on  a  reduced  income.   After
reviewing applicant’s current financial situation, the Board  majority
observed that the applicant has over $100,000 in  debts;  he  has  now
lost all three sources of “good income”; and, is now having  to  start
over, most likely at the bottom,  with  a  new  company.   It  is  the
opinion of the Board majority that the applicant would be lucky if  he
was able to pay the interest on his HPSP  debt.   The  Board  majority
does not believe the applicant will ever be able to make good  on  his
government debt and it would be futile for  the  Defense  Finance  and
Accounting Service  (DFAS)  to  try  and  collect.   In  view  of  the
foregoing, the Board majority believes  that,  on  the  basis  of  the
applicant’s hardship associated with his wife’s illness,  his  request
for recoupment of the HPSP  debt  should  be  approved.   Accordingly,
based on the totality of the evidence before  this  Board,  the  Board
majority recommends that the applicant’s records be corrected  to  the
extent indicated below.
_________________________________________________________________

THE BOARD RECOMMENDS THAT:

The pertinent military records of the  Department  of  the  Air  Force
relating to APPLICANT be corrected to show that, at the  time  of  his
discharge from the Air Force, the Secretary of  the  Air  Force  found
that, under the particular circumstances of  his  case,  no  debt  was
established to reimburse the United States for funds expended  on  his
education  under  the  Armed  Forces  Health  Professions  Scholarship
Program. (AFHPSP).
_________________________________________________________________

The following members of the  Board  considered  this  application  in
Executive Session on 4 April and 14 May 2001, under the provisions  of
AFI 36-2603:

                  Mr. Henry Romo Jr., Panel Chair
                  Mr. Joseph A. Roj, Member
                  Ms. Brenda L. Romine, Member

Mr. Romo and Ms. Romine voted to grant applicant's  request.   Mr. Roj
voted to deny the applicant's request and submitted a minority  report
(Exhibit H).  The following documentary evidence was considered:

   Exhibit A.  DD Form 149, dated 18 Nov 00, w/atch.
   Exhibit B.  Applicant's Master Personnel Records.
   Exhibit C.  Letter, AFIT/CIM, dated 2 Jan 01, w/atchs.
   Exhibit D.  Letter, SAF/MIBR, dated 19 Jan 01.
   Exhibit E.  Letter, AFBCMR, dated 23 Feb 01, w/atch.
   Exhibit F.  Letter, AFBCMR, dated 5 Apr 01.
   Exhibit G.  Letters from applicant, dated 23 Apr 01, w/atchs,
                   and 4 May 01, w/atchs.
   Exhibit H.  Minority Report.




                                   HENRY ROMO JR.
                                   Panel Chair



                                        May 24, 2001

MEMORANDUM FOR THE     EXECUTIVE DIRECTOR, AIR FORCE BOARD FOR
                 CORRECTION OF MILITARY RECORDS (AFBCMR)

SUBJECT:  APPLICANT

      After reviewing the evidence presented, I disagree with the
conclusions drawn by the majority of the Board concerning the
applicant’s request to waive his Health Professional Scholarship
Program (HPSP) debt.

      In reviewing the applicant’s “current” financial data, it is my
opinion that we [the Board] still have only part of the information
needed to fully judge the applicant’s income and expenses.  According
to the financial data provided, the applicant made $64,338 last year
(three different jobs).  What we do not know is how long he worked at
each job.  If someone only works part-time (e.g., only 20 weeks at a
job) and he takes a full-time job at 63% of the old rate, he will make
more at the lower paying job than he did at the higher rate.  Then
there is the benefits for the full-time job versus the part-time job.
What I see is the ability to earn a good income.

      In addition to the above, no information has been presented
concerning his wife’s current medical condition.  The following
questions come to mind:  (1) How did he work three jobs if his wife
was still sick?  (2)  Due to his wife’s illness, what are his
expenses?  The applicant does not claim any debt due to his wife’s
illness.

      In summary, I do not believe that the evidence presented shows
enough detailed information to waive the debt and I vote to deny the
applicant’s request in its entirety.




            JOSEPH A. ROJ
            Panel Member

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