BOARD DATE:	  26 February 2014

		DOCKET NUMBER:  AR20130011773 


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 his Reserve Officers' Training Corps (ROTC) scholarship debt of $98,528.00 be forgiven.

2.  The applicant states according to the Defense Finance and Accounting Service (DFAS) website, individuals who entered active duty service in any branch, with a debt that originated from the Army, may apply to this Board for termination of the debt.  He was enrolled at Embry-Riddle Aeronautical University for 3 complete years.  Toward the end of his second year, he began to suffer from mild depression due to the death of his grandfather and breakup with his fiancée.  He did not seek counseling until it was too late.  He was disenrolled from ROTC during his third year.  He requested enlistment in lieu of paying the debt, but in August 2011 he received a letter stating that the Army again denied his request for enlistment.  He applied to DFAS for a deferment of his debt and DFAS approved it.  During this time, he decided to enlist.  After entering the U.S. Navy (USN), he learned of the procedure to terminate a debt and he was told he could submit this request and that his debt would be deferred by DFAS for 
2 years. 

3.  The applicant provides:

* Cadet DD Form 4 (Enlistment/Reenlistment Document)
* DA 597-3 (Army Senior ROTC Scholarship Cadet Contract)
* Disenrollment approval memorandum
* Letter from DFAS
* DFAS Internet printouts 
* History of Assignments in the USN
* DD Form 4 (Enlistment/Reenlistment Document)
* Statement from his commanding officer

CONSIDERATION OF EVIDENCE:

1.  The applicant enlisted in the U.S. Army Reserve as a cadet for a period of 8 years on 27 September 2007.  In connection with this enlistment, he executed a DA 597-3 and agreed to receive scholarship benefits for a period of four academic years, including tuition and fees, books, laboratory expenses, and monthly subsistence, at Embry-Riddle Aeronautical University, Florida, in exchange for appointment as a Reserve of the Army upon successful completion of all academic, military, and other requirements of the Army ROTC program.

2.  Paragraph 5 (Terms of Disenrollment) of his DA Form 597-3 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 service the cadet agreed to serve or was ordered to serve.

3.  Paragraph 6 (Enlisted Active Duty Service Obligation) of his DA Form 597-3 states that if he were called to active duty for breach of contract under the provisions of paragraph 5, he would be ordered to active duty for 2 years if the breach occurred during Military Science (MS) II; 3 years if the breach occurred during MS III; or for 4 years if the breach occurred during MS IV.

4.  On 14 May 2010, his Professor of Military Science (PMS) notified him by memorandum of the initiation of disenrollment action from the ROTC and placement on leave of absence due to his failure to pass the Army Physical Fitness Test (APFT) and his lack of interest in military training as evidenced by his frequent absences.  He was advised of his rights to request a hearing and also notified that he retained the status of cadet until disenrollment and discharge action were complete and as such may not enlist in any other military service or component or sign any other scholarship contract.  He was further informed that as a scholarship cadet he could be called to active duty in an enlisted rank/grade of private (PV1)/E-1 or required to repay scholarship benefits in the amount of $98,528.00 in lieu of a call to active duty.

5.  On 24 May 2010, the applicant acknowledged receipt of the disenrollment memorandum.  He waived his right to a hearing and acknowledged that the amount and validity of the debt as stated on the disenrollment notification is correct.  He also waived his right to appeal the disenrollment and/or the amount of the debt.  He did not make an election regarding payment of the debt or accepting/declining expeditious call to active duty. 

6.  Also on 24 May 2010, he accepted expeditious call to active duty in fulfillment of his contractual obligation and indicated he understood he would normally be ordered to active duty within 30 days and this option is contingent on his eligibility for active duty.  

7. On 24 May 2010, the PMS recommended the applicant's disenrollment from the ROTC Program.  He also recommended the applicant be ordered to active duty in order to repay his scholarship debt.  The PMS opined that the applicant was experiencing some time management issues while having normal college adjustment problems.  He still had great potential for enlisted service.  

8.  On 24 June 2010, the Brigade Deputy Commander also recommended approval of the disenrollment but did not concur with the PMS' recommendation to support the applicant's request for call to active duty.  The Brigade Deputy Commander opined that the applicant had shown he lacked the self-discipline to pass the APFT.  He recommended the applicant repay the debt.  

9.  On 5 August 2010, the Commanding General, U.S. Army Cadet Command, ordered the applicant disenrolled from the ROTC program in accordance with Army Regulation 145-1 (Senior ROTC Program: Organization, Administration, and Training), paragraph 3-43a(15) due to breach of ROTC contract based on his failure to maintain the APFT standards and indifferent attitude as evidenced by his frequent absences from military science classes and physical training.  

10.  The applicant was provided an addendum to his scholarship contractual agreement with options to be ordered to active duty, repayment of the debt in a lump sum, or repayment in monthly installments.  

11.  He responded on 13 August 2010 by signing an Addendum indicating his promise to repay the total amount owed, $98,528.00 in monthly installments, plus interest on the amount owed.  He also indicated he understood DFAS would provide him with a repayment schedule to liquidate the debt. 

12.  It appears that subsequent to this action DFAS officials notified the applicant of his scholarship debt in the amount of $98,528 with options to make installment payments.


13.  In December 2010, he received correspondence from DFAS indicating that in order to consider his request for financial hardship and/or reduced payment on his debt, he would need to provide the Promissory Note to Pay in Installments and the Department of Justice Financial Statement.  

14.  He provided DFAS with a signed Promissory Note to Pay in Installments and promised to pay the principal amount of $98,528 with simple interest.  

15.  On 6 October 2010, he enlisted in the U.S. Navy Reserve for 8 years under the Delayed Entry Program.  His DD Form 4 shows:

* he enlisted in the pay grade of E-3
* he enlisted for a bonus in the amount of $15,000

16.  He enlisted in the U.S. Navy for 4 years on 26 May 2011.  He also agreed to extend his enlistment on that date by 24 months for training in an Advanced Electronic Field/Advanced Technical Field program and advancement to E-4.  

17.  He provides a signed statement from the Commanding Officer, USS Truxtun who states: 

	a.  The applicant is stationed aboard the USS Truxtun as an Electronics Technician.  

	b.  Upon review of the applicant's military file it was determined the applicant had not received any monetary incentive to enlist as an Advanced Electronics/ Computer Field Technician.  He was initially offered a $15,000 bonus to enlist in the nuclear field; however, he was dropped from the program due to prior service and indebtedness and he did not receive a bonus.  

	c.  From his knowledge, the only incentives the applicant received were accelerated promotion to E-4 upon completion of Electronics Technician Training and eligibility for the Montgomery GI Bill.  

18.  Army Regulation 145-1 prescribes polices and general procedures for administering the Army’s Senior ROTC Program.

	a.  Paragraph 3-31 states the Army ROTC Scholarship Program provides financial assistance to those students who have demonstrated academic excellence and leadership potential.  The U.S. Army Scholarship Program’s purpose is to provide for the education and training of highly qualified and motivated young men and women who have a strong commitment to military service as commissioned officers.
	b.  Paragraph 3-39 states a non-scholarship cadet may be disenrolled by the PMS and a scholarship cadet may be disenrolled only by the Commanding General (CG), ROTC Cadet Command.  Nonscholarship and scholarship cadets will be disenrolled for a variety of reasons.

	c.  Paragraph 3-43a(12) states a cadet may be disenrolled due to misconduct, demonstrated by disorderly or disrespectful conduct in the ROTC classroom or during training, or other misconduct that substantially interferes with the ROTC mission, including participation in unlawful demonstrations against the ROTC, illegal interference with rights of other ROTC students, or similar acts.

	d.  Paragraph 3-43a(15) states a cadet may be disenrolled due to an indifferent attitude or lack of interest in military training as evidenced by frequent absences from military science classes or drill, an established pattern of shirking, failure to successfully complete an established weight control program, or similar acts.

19.  Army Regulation 37-104-3 (Financial Administration – Military Pay and Allowances Policy) 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, U.S. Military Academy, and advanced civilian schooling under a previous agreement when obligated active duty service has not been completed.

DISCUSSION AND CONCLUSIONS:

1.  The evidence of record confirms the applicant was accepted into an Army ROTC scholarship program.  However, he failed to satisfy the contractual requirements of this program based on his failure to pass the APFT and his lack of interest in military training as evidenced by his frequent absences which constituted a breach of contract.

2.  He was disenrolled from the ROTC program and he was subsequently found in breach of his ROTC contract.  He was advised of his rights and elected expeditious call to active duty that would have ordered him to active duty in lieu of paying his debt.  The CG approved the disenrollment but disapproved the applicant's call to active duty.  He accepted this decision and promised to pay the debt back in installments.

3.  The terms of the ROTC scholarship contract required a cadet to either monetarily repay the debt or agree to be ordered to active duty (emphasis added) as an enlisted Soldier through ROTC channels based on the needs of the Army. 

4.  He enlisted for 4 years on 26 May 2011 in the U.S. Navy in the grade of E-4 and extended his enlistment on that date for 2 years in exchange for specialized training and accelerated advancement to E-4.  His commanding officer verified that the applicant did not receive a monetary bonus.  

5.  The applicant acknowledges his error, and his May 2011 enlistment in the Regular U.S. Navy serves the same purpose as it would have had he been ordered to active duty in the U.S. Army.  In other words, the Department of Defense is still getting the benefit of his service (for a period of 6 years whereas his ROTC contract would have required only 4 years of active duty).  Therefore, as a matter of equity only, it would be appropriate to consider his enlistment in the U.S. Navy to have met the active duty obligation required by his ROTC scholarship contract. 

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

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 amending his ROTC scholarship contract to show he would satisfy the service obligation under the original terms of the ROTC contract as a U.S. Navy enlisted Soldier.

2.  That DFAS determine if he has been paid or is due to be paid an enlistment bonus.  In the event that he has received an enlistment bonus or becomes due for payment of an enlistment bonus, that bonus payment should be recouped to offset an equal portion of his ROTC scholarship debt.

3.  If he fails to complete 4 years 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 forgiving his entire 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)                                         AR20130011773



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ABCMR Record of Proceedings (cont)                                         AR20130011773



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