IN THE CASE OF:	  

		BOARD DATE:	  4 June 2009

		DOCKET NUMBER:  AR20080014757 


THE BOARD CONSIDERED THE FOLLOWING EVIDENCE:

1.  Application for correction of military records (with supporting documents provided, if any).

2.  Military Personnel Records and advisory opinions (if any).


THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE:

1.  The applicant requests, in effect, that her Reserve Officers' Training Corps (ROTC) debt be reviewed and that she be afforded a waiver of that debt.

2.  The applicant states, in effect, that she incurred a debt as a result of her disenrollment from the ROTC program in 2005.  She made arrangements to repay this debt at a rate of $90.00 per month.  Following her disenrollment, she enlisted in the Ohio Army National Guard (OHARNG) and participated in the State officer candidate program.  She was commissioned as a second lieutenant in the Ohio ARNG.  Upon entering active duty, her ROTC debt was transferred to an in-service debt and she was forced to pay two-thirds of her disposable income until it was paid off.  Attempts to return to the original repayment plan or put a hold on the withholding failed.  This has caused her significant financial problems.  She was advised that she might be entitled to receive a waiver of the ROTC debt through the Army Board for Correction of Military Records (ABCMR).  The applicant indicates that upon completion of her period of mobilization in November 2009 she is slated to assume an Active Guard Reserve (AGR) position.

3.  The applicant provides copies of her ROTC contract, ROTC disenrollment documents, ARNG enlisted discharge and commissioning order, her Oaths of Office, her acceptance of command of the 838th Military Police Company, her Federal recognition orders, two sets of orders to active duty for training, and four Leave and Earnings Statements (LESs).


CONSIDERATION OF EVIDENCE:

1.  On 26 August 2003, the applicant signed a DA Form 597-3 (Army Senior ROTC Scholarship Cadet Contract).

2.  Paragraph 1 of the applicant’s DA Form 597-3 states that the Army agreed to pay for a period of 3 academic years up to an annual amount of $17,000 in tuition and educational fees.

3.  Paragraph 5 of the applicant’s DA Form 597-3 states that if the applicant were disenrolled from the ROTC Program for a listed reason, including for breach of contract or for misconduct, the Secretary of the Army could order her to active duty in an enlisted status.  In lieu of being ordered to active duty, she could be ordered 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 her advanced education from the commencement of the contractual agreement to the date of her disenrollment or refusal to accept a commission.

4.  Paragraph 6 of the applicant’s DA Form 597-3 stated that if she were called to active duty for breach of contract under the provisions of paragraph 5, she would be ordered to active duty for 2 years in an enlisted status if the breach occurred during Military Science II year and 3 years if the breach occurred during Military Science III year.

5.  On 1 June 2005, the applicant was disenrolled as a Military Science II year ROTC student due to failure to meet the Army weight requirements.  Her scholarship indebtedness is shown to be $9,108.87.

6.  On 11 June 2005, the applicant provided an addendum to her scholarship contractual agreement acknowledging her debt of $9,108.87.  She agreed to repay the total amount owed in monthly installments plus interest based on a repayment schedule established by the Defense Finance and Accounting Service (DFAS) to liquidate the debt.

7.  The applicant entered into a repayment agreement with DFAS to repay the debt at the rate of $90.00 per month.

8.  With the applicant's disenrollment from the ROTC, she enlisted in the OHARNG.  She served in an active duty enlisted status, completing basic training on 30 September 2005.  The applicant was accepted for and commenced the OHARNG State Officer Candidate program on 1 May 2006.
9.  On 18 August 2007, the applicant was discharged from the OHARNG to accept a commission in the OHARNG as a second lieutenant (2LT) in the Military Police (MP) Corps.

10.  The applicant was commissioned as a 2LT MP and received Federal recognition effective 19 August 2007.

11.  On 1 October 2007 the applicant assumed command of the 838th MP Company (Rear) in Youngstown, Ohio.

12.  The applicant was ordered to active duty for training for the period from 8 June 2008 through 25 July 2008 to attend the Basic Officer Leadership course.

13.  The applicant was ordered to active duty for training for the period from 3 August 2008 through 17 October 2008 to attend the MP Officer Leadership course.

14.  The applicant's LESs show a withholding of monies toward her ROTC scholarship debt during August 2008 of $450.00 per pay period and during September 2008 of $294.44 and $90.09, respectively.

15.  The applicant was ordered to active duty in support of Operation Iraqi Freedom by OHARNG Orders 254-234, dated 10 September 2008, for a period not to exceed 400 days.  Her reporting date was 8 November 2008.  The record shows she was assigned for duty as a member of the 135th MP Company (Combat Support) and is still on active duty and serving in Iraq.

16.  In an advisory opinion, dated 3 November 2008, the U.S. Army Cadet Command stated that the terms of the scholarship contract required that a cadet either repay the debt monetarily or agree to be ordered to active duty through the ROTC channels.  The applicant was offered these options at the time of her disenrollment and elected to repay the debt.  Her current active duty commitment is not a result of being ordered to active duty through ROTC channels in satisfaction of her ROTC contractual obligation.  She should be required to repay the scholarship benefits she received.

17.  A copy of the advisory opinion was forwarded to the applicant but no response is of record.


18.  The applicant was promoted to first lieutenant effective 19 February 2009.  Her promotion orders show assignment to the 135th MP Company.

19.  There is no indication that the applicant ever failed to make her debt payments at any time or that she received any monetary enlistment bonus.

DISCUSSION AND CONCLUSIONS:

1.  The applicant requests, in effect, that her ROTC debt be reviewed and she be afforded a waiver of that debt.

2.  Had the applicant accepted entry onto active duty in lieu of repaying her ROTC debt, she would have been obligated to serve on active duty in an enlisted status for 2 years.

3.  Since her June 2005 enlistment in the OHARNG, the applicant has served approximately 4 years in an active status in both an enlisted and a commissioned officer status with the OHARNG.  Of this period, she has served on active duty for training for approximately 4 months and in a mobilized status for approximately 7 months.  She is currently serving on active duty in Iraq with a projected demobilization in October or November 2009.

4.  The applicant entered into a contractual agreement to repay her educational debt plus interest at a rate of $90.00 per month.  However, upon commencement of her OHARNG commissioned service her entire debt was transferred to an in-service debt and she was required to pay it at a rate far in excess of her contractual agreement with DFAS.  It appears from the last LES provided that the $90.00 per month repayment level was restored.

5.  Although not provided for in her DA Form 597-3, service on active duty (emphasis added) in the ARNG serves the same purpose as would have been served had she been ordered to active duty under the terms of her ROTC contract.  Further, the Army has gotten the benefit of her active participation the ARNG for approximately 3 years and will benefit from having her serve on active duty as a commissioned officer for over a year.

6.  As a matter of equity, it would be appropriate to consider her active duty service, other than for training, to proportionally meet the active duty service obligation required by her ROTC scholarship contract.


7.  Additionally, should the applicant continue on active duty or enter into the AGR Program upon completion of her current active duty mobilization period, upon her completion of a total of 2 years of combined active duty, the full amount of obligated service should be shown to have been met and any recoupment of monies be reimbursed to her at that time.

8.  In light of this modification and her current status on active duty, DFAS should hold in abeyance further debt recoupment until the applicant is released from active duty and waive that portion of her debt equal to her active duty service.

BOARD VOTE:

________  ________  ________  GRANT FULL RELIEF 

____x____  ____x____  ____x____  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:

	a.  amending the applicant's ROTC scholarship contract to show that she would satisfy the service obligation under the original terms of the ROTC contract if she serves on active duty in an ARNG or AGR status for a period of 2 years;

	b.  showing that the applicant's current mobilization period has satisfied a portion of the original service obligation with her current period of active duty;

	c.  showing that if, upon completion of her current period of active, she either continues on active duty or is assigned to an AGR position, upon completion of 2 years of service her ROTC service obligation will be considered to have been met; 

	d.  suspending any further ROTC debt collection; and

	e.  reimbursing the applicant any and all monies recouped as a result of the ROTC debt collection upon completion of her period of active duty equal to her original ROTC service obligation.
2.  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 a complete waiver of her ROTC debt at this time.





      ___________x______________
       	     CHAIRPERSON
      
I certify that herein is recorded the true and complete record of the proceedings of the Army Board for Correction of Military Records in this case.
ABCMR Record of Proceedings (cont)                                         AR20080014757



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ABCMR Record of Proceedings (cont)                                         AR20080014757



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