BOARD DATE:	  7 October 2014

		DOCKET NUMBER:  AR20140003275 


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 remission of his Reserve Officers' Training Corps (ROTC) debt in the amount of $15,670.51. 

2.  The applicant states, in effect:

   a.  He is disputing his ROTC debt of $15,670.51 that was initiated by the U.S. Army Cadet Command (USACC) and is carried as an unpaid debt and a larger amount of debt in the amount of $20,058.02, which includes added fees, interest, and penalties.

   b.  While he did not fulfill his obligations, there were indicators upon his discharge that he would bear no further indebtedness.

	c.  Orders 101103-01, dated 3 November 2010, discharging him from the ROTC Control Group, stated he was discharged without further obligation.  He sent an email to Ms. NC acknowledging receipt of these orders and asked the question "I just want to make sure that I do not have to enlist or repay" the debt.  "Ms. NC replied that is correct."  Ms. NC was listed as the point of contact (POC) for his disenrollment from the ROTC program.

	d.  In addition, it took 2 years for the paperwork to be processed through the University of Washington (UW), Department of Military Science, to Headquarters, USACC.  The disenrollment paperwork was signed by Lieutenant Colonel (LTC) BMR on 11 February 2009 and Major General (MG) JMN signed the final paperwork on 15 February 2011.  He was never given this paperwork nor did he expect to after being told he had no further obligation.  He received both documents from the Defense Finance and Accounting Service (DFAS) in November 2013.  

	e.  He was no longer living in the State of Washington and had not physically been there since 2008.  The paperwork from the UW ROTC program took almost a year after he departed the university to be processed.  It should be understood that he could not respond to the available options in those letters since he had not received them.

	f.  There had been no contact or interaction with the ROTC program or with DFAS concerning the collection or reimbursement of funds until he was contacted by the U.S. Treasury Debt Management Service on 20 February 2013 for collection.  That was a 27-month lapse in contact.  The USACC did submit a letter to DFAS on 22 May 2012 to begin collection of his debt but he never received the letter.  With the lapse of time, orders stating he had no further obligation, and an email acknowledging he did not have to enlist or repay the debt would make a logical person believe they had been cleared of any debt or obligation by the Army.

	g.  He truly believed he did not owe a debt.  It is also his belief that he was cleared of any debt and is being charged not only for a balance that he does not owe, but he is also being charged false fees, interest, and penalties.

3.  The applicant provides four memoranda, orders, an email, and two letters.

CONSIDERATION OF EVIDENCE:

1.  The applicant enlisted in the U.S. Army Reserve (USAR) Control Group (ROTC) on 26 September 2007.  His DA Form 597-3 (Army Senior ROTC Scholarship Cadet Contract) shows the date his education commenced was 26 September 2007 with a completion date of 11 June 2011.  His academic major was computer science.  He was enrolled in UW, Seattle, WA.

2.  Paragraph 1 (Department of the Army Agreements) of his DA Form 597-3 states he would be paid scholarship benefits for a period of 4 academic years.  Paragraph 5 (Terms of Disenrollment) states he understood and agreed that once he became obligated and was disenrolled from the ROTC program for breach of contractual terms the Secretary of the Army or his/her designee could order him to active duty as an enlisted Soldier for a specified period of time; or in lieu of being ordered to active duty, he could be required to repay the dollar amount, plus interest, equal to the entire amount of the financial assistance paid by the United States to the cadet. 
3.  On 18 February 2009, LTC BMR, his Professor of Military Science (PMS), notified him by memorandum of the initiation of disenrollment action from the ROTC program based on his failure to maintain above a 2.0 grade point average (GPA) during Autumn Quarter 2007, Spring Quarter 2008, Autumn Quarter 2008, and his failure to enroll in UW classes for the Winter Quarter 2009.  He was informed he was being placed on a leave of absence pending disenrollment and he could request a hearing by a board of officers or an investigating officer to hear his case.  He was further informed that as a scholarship cadet, he could be called to active duty in an enlisted rank/grade of private (PVT)/E-1 or be required to repay scholarship benefits in the amount of $15,310 in lieu of call to active duty in fulfillment of his contractual obligations.

4.  This memorandum was addressed to the applicant and listed both his local address in Seattle and his permanent address in Fayetteville, NC; the address he used when submitting this application to the Board.

5.  The applicant provides part of a memorandum, undated, addressed to the PMS, ROTC Instructor Group, UW, subject:  Disenrollment from the ROTC Program - [The Applicant].  This memorandum stated the applicant was disenrolled from the ROTC program due to his failure to maintain a quarter academic GPA of 2.0 on a 4.0 scale.  It further instructed that discharge orders be published and a copy of the orders be provided to the applicant.  The POC for USACC was listed as Ms. NC.

6.  Orders 101103-01, dated 3 November 2010, issued by the 8th Brigade, Cadet Command, UW, Seattle, discharged the applicant from the USAR ROTC Control Group effective 3 November 2010 without further obligation [to serve in the ROTC program].

7.  The applicant provides an email, dated 4 November 2010, to Ms. NC, USACC, wherein he stated "I received the attached file because I disenrolled from the Army ROTC at the UW.  I just wanted to make sure that I do not have to enlist or repay."  The response he provided from Ms NC, dated 4 November 2010, stated "That is correct."

8.  The applicant provides:

	a.  A memorandum written to him, dated 15 February 2011, by MG JMM, Commander, USACC, which stated the applicant was disenrolled from the ROTC program due to failure to maintain a quarter academic GPA of 2.0 on a 4.0 scale. It further stated when the ROTC scholarship contract is breached any obligation to the Army must be satisfied by repaying the cost of assistance provided by the Army.  The total amount owed was $15,634.  He could elect to pay the total amount in one lump sum or initiate a repayment plan.  He had 14 days from the date of the letter to submit his election.  Failure to respond may result in the initiation of involuntary collection action.  This memorandum was addressed to the applicant at a Seattle, WA, address.  A copy of the memorandum was sent to the PMS, UW, and the Commander, 8th Brigade.

	b.  A memorandum written to the Resource Management Director, USACC, dated 22 May 2012, from the Chief, Cadet Actions and Standards Division, USACC, stated the Chief requested the applicant's case be processed to establish a debt with DFAS.  It further stated an addendum was not enclosed since the applicant failed to respond.  

	c.  A letter written to the applicant, dated 7 November 2013, from DFAS, wherein it stated the applicant would need to contact his former ROTC command to protest his debt.  If they deemed the debt had been satisfied DFAS would need an official debt cancelation memorandum to show this.  They were prohibited from discussing aspects of his account because it was with the private collection agency.  This memorandum was addressed to the applicant at his Fayetteville, NC, address.

	d.  A letter written to the applicant, dated 13 January 2014, from the Deputy Chief of Staff, G-1, USACC, wherein it stated a debt had been established with DFAS.  Legal restrictions precluded the Commander, Cadet Command from granting a waiver of a properly-established debt for recoupment of scholarship funds arising from a breach of the ROTC contract.  Enclosed with the memorandum was a DD Form 149 (Applicant for Correction of Military Record).  

9.  On 20 March 2014, by email, a DFAS official verified the applicant owed an ROTC debt in the amount of $15,634.

10.  Army Regulation 145-1 (Senior ROTC Program: Organization, Administration and Training) prescribes policies and general procedures for administering the Army’s Senior ROTC Program.  Paragraph 3-43, in part, states that scholarship cadets will be disenrolled for a breach of contract.  Breach is defined as any act, performance, or nonperformance on the part of a student that breaches the terms of the contract regardless of whether the act, performance, or nonperformance was done with specific intent to breach the contract or whether the student knew that the act, performance, or nonperformance breaches the contract.  Paragraph 3-43a states a cadet may be disenrolled for failure to maintain a minimum academic GPA of 2.0.


11.  Title 10, U.S. Code, section 2005(f) states that the Secretary concerned shall require, as a condition to the Secretary providing financial assistance under section 2107a (financial assistance program for specially selected members:  Army Reserve and Army National Guard; i.e., ROTC) of this title to any person, that such person enter into an agreement described in subsection (a).  In addition to the requirements of clauses (1) through (4) of such subsection, any agreement required by this subsection shall provide (1) that if such person fails to complete the education requirements the Secretary shall have the option to order such person to reimburse the United States in the manner provided for without the Secretary first ordering such person to active duty as provided for under clause (2) of such subsection.

DISCUSSION AND CONCLUSIONS:

1.  The evidence of record confirms the applicant enlisted in an ROTC program.  He agreed if he were disenrolled from the ROTC program for any reason, he could be ordered to repay his scholarship debt.  The evidence of record also shows he failed to satisfy the contractual requirements of this program due to his failure to maintain academic standards and his withdrawal from UW.  Therefore, he was found in breach of his ROTC contract and was accordingly notified of his disenrollment from the program.

2.  His contention that he was told by the USACC POC that he did not have to enlist or repay his debt is noted; however, USACC personnel do not have the authority to forgive an ROTC debt.  He was notified in February 2009 that he could be called to active duty or be required to repay the $15,634 he owed in scholarship benefits.  This memorandum was also sent to his Fayetteville, NC address.  In February 2011, he was notified he owed the debt of $15,634 due to his disenrollment.  Although the second memorandum was addressed only to his Seattle address, it was also sent to his former ROTC commander and PMS.  It is reasonable to presume it would have been forwarded to him by his former unit and/or PMS.  

3.  Regardless, he entered into a valid contract and received educational assistance but failed to complete the requirements of this contract.  He agreed that if he was disenrolled from the program he could be ordered to active duty as an enlisted Soldier or be obligated to repay the amount of assistance provided.  He was subsequently disenrolled from the ROTC program due to his failure to meet academic standards and his withdrawal from UW.  The fact that it took 
2 years to establish his debt with DFAS does not invalidate the debt.  He breached his ROTC contract and the evidence of record confirms his ROTC debt in the amount of $15,634 plus any interest due is valid.

4.  In view of the foregoing, he is not entitled to the requested relief.

BOARD VOTE:

________  ________  ________  GRANT FULL RELIEF 

________  ________  ________  GRANT PARTIAL RELIEF 

________  ________  ________  GRANT FORMAL HEARING

___X_____  __X______  _X___  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.



      _______ _  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)                                         AR20140003275



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