RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:      25 July 2006
      DOCKET NUMBER:  AR20060004506


      I certify that hereinafter is recorded the true and complete record
of the proceedings of the Army Board for Correction of Military Records in
the case of the above-named individual.

|     |Mr. Carl W. S. Chun               |     |Director             |
|     |Ms. Deyon D. Battle               |     |Analyst              |


      The following members, a quorum, were present:

|     |Mr. Allen L. Raub                 |     |Chairperson          |
|     |Ms. LaVerne Douglas               |     |Member               |
|     |Ms. Peguine M. Taylor             |     |Member               |

      The Board considered the following evidence:

      Exhibit A - Application for correction of military records.

      Exhibit B - Military Personnel Records (including advisory opinion,
if any).

THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE:

1.  The applicant requests that his Reserve Officers’ Training Corps (ROTC)
debt in the amount of $26,400.00, which he incurred 2 months into his
second year as an ROTC cadet, be waived.

2.  The applicant states that, in effect, he was ordered to either repay
the government or be ordered to active duty for a period of not more than 4
years.  He is now in the Regular Army for 4 years.

3.  The applicant provides a copy of his Army Senior ROTC Scholarship Cadet
Contract (DA Form 597-3); an Addendum to his DA Form 597-3; a copy of his
United States Army Delayed Enlistment Program Statement of Understanding; a
copy of his Army Reservation Sheet; a copy of a letter from the Defense
Finance and Accounting Service (DFAS), addressed to him dated 22 November
2004, pertaining to his request for consideration of financial hardship; a
copy of a letter from DFAS, addressed to him dated 14 November 2005,
informing him of the status of his account; a copy of electronic mail
(email) from DFAS providing him with information on how to apply to this
Board.

CONSIDERATION OF EVIDENCE:

1.  The applicant enlisted in the U. S. Army Reserve (ROTC Control Group)
on   4 October 2002.  His DA Form 597-3, paragraph 7 states that if the
cadet were disenrolled from the ROTC program for any reason, the Secretary
of the Army could order the cadet to reimburse the United States the dollar
amount plus interest that bears the same ratio to the total cost of the
scholarship financial assistance provided by the United States to the cadet
as the unserved portion of active duty bears to the total period of active
duty the cadet agreed to serve or was ordered to serve.

2.  Paragraph 8 of the applicant’s DA Form 597-3 states that if he were
called to active duty for breach of contract under the provisions of
paragraph 7, he would be ordered to active duty for 2 years if the breach
occurred during Military Science II; for 3 years if the breach occurred
during Military Science III, or for 4 years if the breach occurred during
Military Science IV.

3.  In consideration of the agreement to the terms of the ROTC Scholarship
Contract, the Department of the Army agreed to pay, for a period of
4 academic years, tuition and educational fees up to an annual amount of
$17,000.00.


4.  On 22 November 2004, the applicant was notified by DFAS that, after a
review of his financial hardship package on his account, his request for
temporary suspension of his $26,400.00 financial hardship had been approved
until 8 November 2005.  He was informed that during the suspension period,
he would receive monthly account statements reflecting his current balance
to include interest accrual.  He was further informed that, at the end of
the suspension, he was required to make full payment including accrued
interest, penalty, and administrative charges; and that he was required to
make monthly payment of the amount agreed upon in the promissory note.

5.  After being disenrolled from the ROTC Scholarship Program, the
applicant enlisted in the United States Army Reserve on 10 August 2005,
under the Delayed Entry Program, for 4 years, and 22 weeks, in pay grade E-
3.  He enlisted for training in military occupational specialty 11B
(Infantryman), for a $20,000.00 cash enlistment bonus under the United
States Army Incentive Enlistment Program.

6.  The applicant enlisted in the Regular Army (RA) for 4 years on 24
August 2005.

7.  On 18 November 2005, the applicant was notified by DFAS that the
temporary suspension in his $26,400.00 debt to the Department of Defense
had expired.  He was informed that he should contact DFAS to make further
arrangements of his account.

8.  In the processing of this case, an advisory opinion was obtained from
the office of Personnel and Administration, U. S. Army Cadet Command.  That
office opined that the applicant was offered the option of repaying his
ROTC scholarship debt or serving on active duty.  He opted to repay his
ROTC Scholarship debt.   That office also opined that his voluntary
enlisted service in the RA is not an authorized remedy for debt repayment
under the terms of the ROTC contract and recommended that his voluntary
enlistment not reduce the amount he is required to reimburse the United
States for his advanced educational assistance.

9.  A copy of the advisory opinion was provided to the applicant for
comment or rebuttal.  He responded to the advisory opinion by letter dated
23 June 2006, indicating that the contract that he signed back in October
2002 states that if he breached the contract for whatever reason during his
second year in the ROTC


Scholarship Program, he could be ordered to active duty for a period of 2
years.  He states that he elected to pay back the money due in installments
rather than being ordered to active duty at that time.  He states that as
time went on and his bills pilled up, the $26,000.00 debt began weighing
heavily on his mind and, as such, he believed it would be best if he did
something to satisfy the debt.  He states that he went to an Army recruiter
to see what could be done.  He states that he explained his circumstances
to the recruiter and the recruiter's belief was that if he enlisted in the
service the dept would be forgiven upon completion of his service, which is
the same option that he received in March 2006 from DFAS customer service.
He states that at no time was he informed that it would be necessary to
contact Cadet Command ROTC channels to get approval for him to be ordered
to active duty.  He concludes by stating that it really bothers him to know
that in the opinion of the Cadet Command, he is not doing what it necessary
to satisfy the debt that he owes.

10.  Army Regulation 135-210 prescribes policies and procedures for
ordering individual soldiers of the Army National Guard of the United
States and the U. S. Army Reserve to active duty during peacetime.  In
pertinent part, it states that former ROTC cadets, when ordered to active
duty, will be ordered to report to the United States Army Reception
Battalion and will be ordered to active duty in the pay grade of E-1.

DISCUSSION AND CONCLUSIONS:

1.  Although not provided for in his DA Form 597-3, the applicant’s
24 August 2005 enlistment in the Army served the same purpose as would have
been served had he been ordered to active duty in the Army.  The Army is
still getting the benefits of his service.  He would have owed the Army 2
years had he been ordered to active duty.  As a matter of equity it would
be appropriate to consider his enlistment in the Army to have met the
active duty obligation required by his ROTC scholarship contract.

2.  If the applicant fails to complete the period of enlisted service he
would have been obligated as a result of his ROTC scholarship either
voluntarily or because of misconduct, his ROTC debt would be required to be
recouped on a pro-rated basis.





3.  Had the applicant chosen active duty or been involuntarily ordered to
active duty as a result of his disenrollment, he would have been assigned
against the needs of the Army, in pay grade E-1, and not allowed any
enlistment options.  The applicant enlisted in the Army in the grade of E-3
with incentives of training of choice, a cash enlistment bonus of
$20,000.00.

4.  The prospect of negating the applicant's $26,400.00 debt for a free
education he received from the Army without becoming an officer, plus
allowing him to receive any enlistment bonus or other financial incentive
he ordinarily would not have received, would be a windfall.  While the
Board has no jurisdiction to stop any enlistment bonus or loan repayment in
this case, any such bonus and incentive would be legitimate factors to
consider in granting or denying equitable relief regarding the ROTC debt.

BOARD VOTE:

________  ________  ________  GRANT FULL RELIEF

___ALR_  ___LD___  ___PMT _  GRANT PARTIAL RELIEF

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

BOARD DETERMINATION/RECOMMENDATION:

1.  The Board determined that the evidence presented was sufficient to
warrant a recommendation for partial relief.  As a result, the Board
recommends that all Department of the Army records of the individual
concerned be corrected by amending his ROTC scholarship contract to show
that he would satisfy a portion of the $26,400.00 ROTC debt under the
original terms of the ROTC contract by successfully completing his current
enlistment in the RA.

2.  The portion of the ROTC debt that would be satisfied by the above
correction will be $6,400.00.  This is the total amount of the ROTC debt
($26,400.00) minus the $20,000.00 he received or will receive, as a cash
enlistment bonus.





3.  If the individual concerned fails to complete the period of enlisted
service obligated as a result of his amended ROTC scholarship contract
either voluntarily or because of misconduct, his ROTC debt would be
required to be recouped on a pro-rated basis in accordance with his DA Form
597-3.

4.  The Board further determined that the evidence presented is
insufficient to warrant a portion of the requested relief.  As a result,
the Board recommends denial of so much of the application that pertains to
waiving the entire ROTC indebtedness amount.





                                  ____  Allen L. Raub ________
                                            CHAIRPERSON



                                    INDEX

|CASE ID                 |AR20060004506                           |
|SUFFIX                  |                                        |
|RECON                   |                                        |
|DATE BOARDED            |20060725                                |
|TYPE OF DISCHARGE       |                                        |
|DATE OF DISCHARGE       |                                        |
|DISCHARGE AUTHORITY     |                                        |
|DISCHARGE REASON        |                                        |
|BOARD DECISION          |GRANT                                   |
|REVIEW AUTHORITY        |                                        |
|ISSUES         1.  283  |128.0000/PAY AND ALLOWANCE              |
|2.  293                 |128.1000/REMISSION/CANCELLATION         |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |


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