RECORD OF PROCEEDINGS


	IN THE CASE OF:	  


	BOARD DATE:	  1 May 2008
	DOCKET NUMBER:  AR20070015263 


	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.  




Director



Analyst

      The following members, a quorum, were present:




Chairperson



Member



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 $9,549.60 be terminated.  He also requests, in effect, reimbursement of any money paid toward the debt. 

2.  The applicant states, in effect, that his disenrollment from the ROTC was due to personal reasons.  He was informed he would either have to pay back his scholarship money or in lieu of payment he could serve his active duty term.  The applicant continues that he fulfilled his obligation by being commissioned in the U.S. Army.

3.  The applicant provides his ROTC disenrollment paperwork; a DA Form 
597-3 (Army Senior Reserve Officers’ Training Corps (ROTC) Scholarship Cadet Contract), dated 4 October 2000; a DD Form 4 (Enlistment/Reenlistment Document - Armed Forces of the United States), dated 5 September 2006; a DA Form 71 (Oath of Office-Military Personnel), dated 22 March 2007; a letter from the Defense Finance and Accounting Service, dated 12 September 2007; a letter from the applicant addressed to whom it may concern, dated 22 October 2007; a memorandum from a Professor of Military Science from the U.S. Army ROTC Battalion University of Central Florida, dated 22 August 2006; a DA Form 
3286 (Statement for Enlistment U.S. Army Enlistment Program), dated 
14 September 2006; a Cadet Record Brief, prepared on 11 March 2008; a DD Form 214 (Certificate of Release or Discharge from Active Duty), with the period ending 21 March 2007; Headquarters, U.S. Army Infantry Center Orders 53-39, dated 22 February 2007; and a two page college transcript from the University of Central Florida, prepared on 23 August 2006.

CONSIDERATION OF EVIDENCE:

1.  The applicant enlisted in the U. S. Army Reserve Control Group (ROTC) on 
4 October 2000.  Paragraph 7d of the applicant's DA Form 597-3 states, "I understand and agree that if I am disenrolled from the ROTC program or if I fail to accept a commission, if offered, the Secretary of the Army or his designate may order me to active duty as an enlisted Soldier for a period of not more than four years or, in lieu of being ordered to active duty, may require me to reimburse the United States through repayment of an amount of money plus interest, equal to the entire amount of financial  assistance paid by the United States for my advanced education from the commencement of this contractual agreement to the date of my disenrollment or refusal to accept a commission."



2.  Paragraph 8 of the applicant's DA Form 597-3 states, "if I am called to active duty for breach of contract under the provisions of paragraph 7, above, I will be ordered to active duty for one of the periods listed below, based upon the year during the breach occurs: a. During Military Science (MS) II; 2 years; b. During MS III, 3 years; c. During MS IV, 4 years."

3.  Paragraph 10 of the applicant's DA Form 597-3 states, "I agree that if I am disenrolled from the ROTC Program…any money I am determined to owe the United States that is not paid in a lump sum on the date it is due, shall bear interest at the rate equal to the highest rate being paid by the United States on securities…and shall accrue from the day that I am first notified of the amount I owe to the United States as reimbursement under this contract.  I also agree that, if the debt is not paid in a lump sum, I will be required to pay it in monthly installments over a period not to exceed 36 months, in an installment payment amount of not less than $50, unless approved otherwise by the Defense Finance and Accounting Service – Indianapolis Center (DFAS)."  

4.  The applicant was disenrolled from ROTC on 27 August 2004, while he was in Military Science (MS) III.  He was informed the total amount of monies spent in support of his educational assistance was $9,141.50.  He declined to accept expeditious call to active duty.  On 27 September 2004, the applicant signed an addendum to his scholarship contractual agreement promising to make repayment of the total amount owed, $9,141.50, in monthly installments, plus interest.

5.  On 5 September 2006, the applicant enlisted in the Delayed Enlistment Program.  On 14 September 2006, he enlisted in the Regular Army for 3 years, in pay grade E-4.  He requested the enlistment options U.S. Army Officer/Warrant Officer Program and the U.S. Army Loan Repayment Program.  On 22 March 2007, the applicant was appointed in the Regular Army as a second lieutenant out of officer candidate school.

6.  A memorandum from DFAS addressed to the applicant, dated 12 September 2007, indicated that their records showed his indebtedness was in the principal amount of $9,549.60 for recoupment of education expenses paid on behalf of his participation in the ROTC program.

7.  In the processing of this case, an advisory opinion was obtained from the Deputy Chief of Staff, U. S. Army Cadet Command.  That office noted that the applicant breached the terms of his ROTC (scholarship) contract.  The terms of his contract required that he repay the debt monetarily or agree to be ordered to 

active duty based on needs of the Army.  He declined expeditious call to active duty and elected to repay the debt in installments.  The Deputy Chief of Staff further stated that the applicant's enlisted service in the Army was not an authorized remedy for debt repayment under the terms of the ROTC contract and his actions should not eliminate his debt to the government.

8.  In his rebuttal to the advisory opinion, the applicant stated in part that he understood that he violated the terms of his contract.  He did begin to repay the debt while he finished his online programs.  The applicant stated that he enlisted in the Army with the intent to satisfy the debt he owed to the government.  If he had known that enlisting and then commissioning for 3 years would not satisfy his obligation, he would have gone a different route.  When he enlisted, he accepted a Student Loan Repayment option that was to his understanding of the program to pay off debts incurred while in school.

DISCUSSION AND CONCLUSIONS:

1.  There is no evidence of Government error or injustice in this case.  The applicant was properly disenrolled from ROTC and he agreed to repay the amount due plus interest in monthly installments. 

2.  However, his 14 September 2006 enlistment in the Regular Army and his 
22 March 2007 appointment as a second lieutenant in the Regular Army serve the same purpose as his successful completion of ROTC would have done.  The Army is still getting the benefits of his service.  As a matter of equity it would be appropriate to consider his September 2006 enlistment and March 2007 appointment as a commissioned officer in the Regular Army to have met the military service obligation required by his ROTC scholarship contract.  

3.  The applicant has already repaid a portion of his ROTC scholarship debt.  Because these funds were collected to satisfy a financial obligation that had not yet come due and payable under the contract as it is to be amended, that portion must be returned to the applicant until such time as a debt is incurred.  If the applicant serves his 3-year obligation, no debt will accrue.

4.  If the applicant fails to complete the period of obligated service as outlined in the terms of his ROTC scholarship either voluntarily or because of misconduct, his ROTC debt would be required to be recouped on a pro-rated basis.





BOARD VOTE:

___XX __  __XX____  __XX ___  GRANT FULL RELIEF 

________  ________  ________  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 relief.  As a result, the Board recommends that all Department of the Army records of the individual concerned be corrected by amending the applicant’s ROTC scholarship contract to show that he would satisfy the service obligation under the original terms of the ROTC contract as an enlisted Soldier and a commissioned officer in the Regular Army.

2.  That as a result of the above correction, the applicant paid a financial obligation that had not yet come due and payable.  Therefore, recommend the Defense Finance and Accounting Service refund that portion of the ROTC scholarship debt he paid.  If the applicant serves his 3-year obligation, no debt will accrue.  If the applicant fails to complete the period of service obligated as a result of his amended ROTC scholarship contract either voluntarily or because of misconduct, his ROTC debt would then be required to be recouped on a pro-rated basis.




      _____XXX_____
                CHAIRPERSON


ABCMR Record of Proceedings (cont)                                         AR20070015263


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DEPARTMENT OF THE ARMY
BOARD FOR CORRECTION OF MILITARY RECORDS
1901 SOUTH BELL STREET, 2ND FLOOR
ARLINGTON, VA  22202-4508