RECORD OF PROCEEDINGS


	IN THE CASE OF:	  


	BOARD DATE:	  21 FEBRUARY 2007
	DOCKET NUMBER:  AR20060011931 


	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.  



	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, in effect, that his ROTC (Reserve Officers’ Training Corps) debt be waived or that his active duty service be accepted as full repayment of the debt.

2.  The applicant states that he is currently on active duty in the Army. 

3.  The applicant provides DA Form 5315-E (US Army Advanced Education Financial Assistance Record); Army Senior Reserve Officers Training Corps Scholarship Cadet Contract; Addendum to Part I Scholarship Contractual Agreement; Headquarters, United Stated Army Cadet Command (USACC) memorandum, dated 6 April 2005, subject: Disenrollment from the U.S. Army ROTC Program; University of Virginia memorandum subject: Disenrollment of Scholarship/Nonscholarship Cadet from ROTC, dated 2 February 2005; Defense Finance and Accounting Service (DFAS) Denver Center correspondence, dated 25 July 2005; supporting letter; and Enlistment/Reenlistment Contract.

CONSIDERATION OF EVIDENCE:

1.  On 23 August 2002, the applicant entered into a contract between himself and the United States Army ROTC program by signing a DA Form 597-3 (Army Senior Reserve Officers’ Training Corps Scholarship Cadet Contract).  As part of the contract the Department of the Army agreed to pay, for a period of four academic years, the applicant’s tuition and educational fees up to an annual amount of $20,000.00; fees for textbooks and laboratory expenses at a flat rate of $300.00 per annum, subject to increase during the period of the contract; payment for monthly subsistence as provided by law; and payment for attendance at the National Advanced Leadership Camp.

2.  As a partner to this contract, the applicant agreed, among other stipulations, to enlist in the Army Reserve for eight years as a cadet for assignment to the USAR Control Group (ROTC); to enroll in the necessary courses and successfully complete within the prescribed time the requirements for the degree in his academic major; to remain a full-time student in good standing until he received his degree; and to maintain eligibility for enrollment in ROTC, enlistment in the USAR, and commissioning.

3.  He also agreed that if he failed to complete the educational requirements specified in the agreement, or failed to comply with other terms and conditions of the contract due to misconduct, or other disenrollment criteria, he may be disenrolled from the ROTC program for breach of contract.  As a result of disenrollment, he may be ordered to active duty as an enlisted Soldier for a period not more than 4 years, or in lieu of being ordered to active duty, offered the opportunity to voluntarily reimburse the United States government through repayment of an amount of money, plus interest, equal to the amount of financial assistance paid by the United States government.

4.  On 2 February 2005, the Commander, Department of the Army, Cavalier Battalion, University of Virginia, informed the applicant that under the provisions of Army Regulation 145-1, paragraph 3-43(16), he was initiating the applicant’s disenrollment from the ROTC program due to his failure to enroll in and attend ROTC classes and failure to attend mandatory training events.  The commander stated that the applicant was being placed on a leave of absence pending disenrollment.  The applicant was informed of his right to request a hearing, consult with counsel, and/or submit a written statement on his behalf.  The commander also informed the applicant that as a scholarship cadet, he may be called to active duty or required to repay his scholarship benefits of $16,539.00 in lieu of call to active duty in fulfillment of his contractual obligation.

5.  On 7 February 2005, the applicant signed the memorandum and initialed the blocks indicating that he waived his rights to a hearing and declined expeditious call to active duty.  

6.  On 6 April 2005, the commander, USACC, informed the applicant that he was disenrolled from the ROTC Program under the provisions of Army Regulation 145-1, paragraphs 3-43a(6) and (16), based on his breach of contract as evidence of his failure to enroll in and attend ROTC classes and failure to attend mandatory training events.  The commander stated that when an ROTC scholarship contract is breached, any obligation to the Army must be satisfied through order to active duty in an enlisted status or by repaying the cost of advanced education assistance provided by the Army.  The applicant was given 14 days from receipt of the disenrollment letter to either agree to be ordered to serve on enlisted active duty for a term not to exceed 4 years, or elect to pay the amount owed in a lump sum or by a repayment plan.  The letter explained that failure to respond by the suspense date may result in the involuntary issuance of active duty orders or the initiation of involuntary collection action.

7.  On 19 April 2005, the applicant signed the Addendum to Part I Scholarship Contractual Agreement stating that he promised to repay the total amount owed of $16,539.00 in monthly installments, plus any interest on the amount owed.  


8.  The applicant’s records verify that on 9 June 2005 he enlisted in the Regular Army under the United States Army Incentive Enlistment Program in the grade of E-3 for 5 years.  As part of an enlistment incentive, he received the Army College Fund and a cash bonus amount of $19,000.00.

9.  On 25 July 2005, DFAS notified the applicant of his indebtedness of $14,653.33 for recoupment of education expenses paid on his behalf during his participation in the Army ROTC Program.  The DFAS explained to the applicant that he may apply to the Army Board for Correction of Military Records for suspension or termination of his indebtedness.  

10.  The applicant provided a supporting memorandum from the former director of the Army ROTC Program at the University of Virginia.  The former director expounds on the applicant’s attributes and opines that the applicant was the best ROTC student in the entire program.  

11.  On 31 January 2007, DFAS verified the applicant’s indebtedness amount was $13,941.72. 

12.  In the processing of this case an advisory opinion was obtained from the United States Army Cadet Command, Deputy Chief of Staff, G1.  The official noted that the terms of the applicant’s scholarship contract required him to either repay the debt monetarily or agree to be ordered to active duty through ROTC channels based on the needs of the Army.  The applicant was offered these options on 6 April 2006 after being disenrolled from the ROTC program for breach of contract.  The official stated that the applicant choose monetary repayment and a debt was established through DFAS on 29 April 2005.  The official stated that the applicant’s decision to breach the terms of his ROTC contract and enlist in the Army were voluntary actions.  His voluntary enlisted service in the Army was not an authorized remedy for debt repayment under the terms of his ROTC contract.  The command recommended disapproval of his request.

13.  The advisory opinion was forwarded to the applicant for acknowledgement and/or rebuttal and on 21 November 2006, the applicant responded.  The applicant reiterates the terms of his ROTC contract.  He states that he feels that the remainder of his five year enlistment, and approximately $2,000.00 he has paid toward his loan, is more than adequate to cover the rest of his debt.  The applicant continues by explaining his choice of military occupation specialty 18D (Special Forces Medical Sergeant) as a way of “serving my country.”  In closing he compares the three years he would have been obligated to the Army under the ROTC program vice the five years of his enlistment contract and opines that his service to the country more than compensates his ROTC contractual agreement. 

14.  In accordance with Army Regulation 135-210, former ROTC cadets, when ordered to active duty, will be ordered to report to the U. S. Army Reception Battalion, bypassing the recruiting function where enlistment options are offered and negotiated, and will be ordered to active duty in pay grade E-1. 

15.  Army Regulation 145-1 provides, in pertinent part, that a scholarship or non-scholarship cadet under consideration for involuntary call to active duty for breach of contract will be so ordered within 60 days after they would normally complete baccalaureate degree requirements or the cadet is no longer enrolled in school.  The cadet will not be discharged/disenrolled from ROTC until determination has been received from Headquarters, Cadet Command.  If it is determined that the cadet will be ordered to active duty, the cadet will not be discharged, but Headquarters, Cadet Command, will issue orders ordering the cadet directly to active duty.

16.  Army Regulation 37-104-3 (Finance Update) provides the policies and provisions for entitlements and collections of pay and allowances of military personnel.  Chapter 59, currently in effect, provides for recoupment of educational expenses, e.g., ROTC, United States Military Academy, and advanced civilian schooling under a previous agreement when obligated active duty service has not been completed.

17.  Title 10, United States Code, section 2005, serves as the authority for reimbursements for advanced education assistance.  It states, in pertinent part, that individuals who fail to complete the terms of their advanced education assistance agreement will reimburse the United States for the unserved portion not fulfilled.

DISCUSSION AND CONCLUSIONS:

1.  The applicant’s contention that his enlistment in the Regular Army for 5 years and his 2,000.00 payment towards his ROTC debt should fulfill his obligation under this breached ROTC contract was considered.  However, the applicant’s ROTC contract called for an expeditious order to active duty through ROTC channels at the needs of the Army without the benefit of enlistment options or other incentives, which he received.  



2.  Had the applicant elected an expeditious order to active duty to repay his debt for breaching his ROTC contract, he would have been assigned against the needs of the Army, in pay grade E-1, and not allowed any enlistment options.  However, the applicant enlisted in the Army in the grade of E-3, and was authorized a $19,000.00 enlistment bonus.  The prospect of negating his debt for the education he received from the Army without becoming an officer, plus allowing him to receive an enlistment/reenlistment bonus, would be a windfall.

3.  As such, it would be appropriate to deduct the bonus the applicant received from his ROTC debt if his request was to be approved.  Applying this reasoning there is no basis for granting the applicant’s request.  The applicant’s enlistment bonus exceeds his ROTC debt.

BOARD VOTE:

________  ________  ________  GRANT FULL RELIEF 

________  ________  ________  GRANT PARTIAL RELIEF 

________  ________  ________  GRANT FORMAL HEARING

__MT ___  ___JH___  ___DL __  DENY APPLICATION

BOARD DETERMINATION/RECOMMENDATION:

The evidence presented does not demonstrate the existence of a probable error or injustice.  Therefore, the Board determined that the overall merits of this case are insufficient as a basis for correction of the records of the individual concerned.




______Marla Troup_________
          CHAIRPERSON



INDEX

CASE ID
AR20060011931
SUFFIX

RECON
YYYYMMDD
DATE BOARDED
20070221
TYPE OF DISCHARGE
(HD, GD, UOTHC, UD, BCD, DD, UNCHAR)
DATE OF DISCHARGE
YYYYMMDD
DISCHARGE AUTHORITY
AR . . . . .  
DISCHARGE REASON

BOARD DECISION
DENY
REVIEW AUTHORITY

ISSUES         1.
112.00
2.

3.

4.

5.

6.