IN THE CASE OF:  	  

		BOARD DATE:  23 June 2015	  

		DOCKET NUMBER:  AR20140015684 


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 active service as a commissioned officer in the U.S. Navy (USN) since 16 April 2010 be accepted in lieu of his Reserve Officers' Training Corps (ROTC) scholarship debt of $43,404.97.

2.  The applicant states he received an Army ROTC scholarship while at Methodist University from August 2002 to May 2006.  He opted to repay his scholarship in lieu of active duty service due to personal reasons.  He became an English teacher in August 2006 and he received his first notification from the Defense Finance and Accounting Service (DFAS) on 22 November 2006.  His debt balance was $43,404.97 at that time.

3.  On 10 April 2010, the Department of Treasury notified him his debt was $50,265.20 after the 4.97 percent (%) interest had accumulated.  Treasury then added a standard 30% interest to that amount making his debt $65,344.76.  He entered into a payment plan with the Department of Treasury that lasted through April 2014.  His debt is now $52,651.78.

4.  In January 2010, he was accepted in the Navy Officer Candidate School (OCS) Program and on 16 April 2010 he was commissioned in the USN.  He has already served more than 4 years of active service in the USN and he agreed to serve at least 6 more years when he requested his Surface Warfare Revised Junior Officer Critical Skills Retention Bonus.  The bonus requires he serve two 18-month department head tours from year 7.5 to 10.5.

5.  The Department of Treasury will not accept any arrangement except a payment of $1,462.54 per month.  If he does not accept the arrangement then his debt will be placed in collections and his wages would be garnished.  His security manager informed him that this could potentially harm his security clearance and negatively impact his otherwise successful USN career.

6.  The applicant provides:

* DA Form 5315-E (U.S. Army Advanced Education Financial Assistance Record), dated 5 April 2006
* a letter, dated 22 November 2006, from DFAS
* a letter, dated 10 April 2010, from the Department of the Treasury Financial Management Service
* a certificate, dated 16 November 2011, for qualification as a Surface Warfare Officer
* a certificate, dated 28 February 2013, for the award of the Navy and Marine Corps Achievement Medal
* a letter, dated 24 October 2013, from the applicant to the Commander, Navy Personnel Command
* email, dated 12 and 13 May 2014, between the applicant and Waivers and Remissions, Indianapolis, IN
* DD Form 2789 (Waiver/Remission of Indebtedness Application), dated 
1 July 2014
* two letters, dated 18 July 14 and 7 August 2014, from the Commanding Officer, USS Winston S. Churchill (DDG 81)

CONSIDERATION OF EVIDENCE:

1.  The DA Form 597-3 (Army Senior ROTC Scholarship Cadet Contract) he signed when he enrolled in the ROTC Program represents an agreement entered into between the United States Army and the applicant to effect his participation in the ROTC Program.  The applicant’s DA Form 597-3 is not available for review.  The DA Form 597-3 would have stated:

	a.  If he were disenrolled from the ROTC Program the Secretary of the Army could order him 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 his advanced education from the commencement of the contractual agreement to the date of his disenrollment or refusal to accept a commission.  

	b.  If he were disenrolled from the ROTC Program for any reason or if he failed to accept a commission, the Secretary of the Army could order him to active duty as an enlisted Soldier or, in lieu of being ordered to active duty, could require him 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 his advanced education.

	c.  If he were called to active duty for a breach of contract he would be ordered to active duty for 2 years if the breach occurred during Military Science II, for 3 years if the breach occurred during Military Science III, or for 4 years if the breach occurred during Military Science IV.

	d.  He understood and agreed that if he voluntarily or because of misconduct failed to begin or failed to complete any period of active duty that he may have incurred under the contract, he would be required to reimburse the United States an amount of money, plus interest, that is equal to or bore the same ratio to the total cost of the financial assistance provided him as the unserved portion of such duty bore to the total period of such duty he was obligated to serve.

2.  Most of the applicant’s disenrollment paperwork is not available.  A DD Form 785 (Record of Disenrollment from Officer Candidate - Type Training) shows he entered the ROTC program on 27 May 2003 and he was disenrolled on 
5 October 2006.

3.  A DA Form 5315-E, dated 5 April 2006, for the applicant shows the total Army ROTC Scholarship benefits paid was $43,404.97.

4.  A letter, dated 22 November 2006, from DFAS notified the applicant of his debt in the amount of $43,404.97 for his ROTC education tuition assistance.

5.  A letter, dated 10 April 2010, from the Department of the Treasury Financial Management Service notified the applicant his unpaid delinquent debt had been referred to the Department of Treasury for collection.  His current debt was shown as $50,265.20.  He was informed collection action would continue unless he made payment with 10 days in the amount of $56,344.76.

6.  A certificate, dated 16 November 2011, shows he qualified as a surface warfare officer while serving on the USS Ramage (DDG 61).

7.  On 28 February 2013, he was awarded the Navy and Marine Corps Achievement Medal for professional achievement while serving on the USS Ramage (DDG 61) during the period June 2010 to February 2013.

8.  In a letter, dated 24 October 2013, from the applicant to the Commander, Navy Personnel Command he agreed, contingent upon acceptance of his application for a Surface Warfare Revised Junior Critical Skills Retention Bonus, not to tender a resignation that will be effective prior to the completion of two department head tours or one fleet-up tour.

9.  On 1 July 2014, he submitted a request to the Chief of Naval Personnel for waiver/remission of his ROTC debt.

10.  A letter, dated 18 July 2014, from the Commanding Officer, USS Winston S. Churchill (DDG 81) to the ABCMR fully endorses the applicant's request for remission of his indebtedness.  The commanding officer stated:

	a.  The applicant incurred his debt upon exiting the Army ROTC program while at Methodist University in May 2006.

	b.  He was commissioned through Navy OCS on 16 April 2010.

	c.  He has completed 4 years as a surface warfare officer.

	d.  He has been selected and signed a contract to become a department head, which obligates him to at least 10 years of commissioned service, well beyond the minimum service requirement for an ROTC scholarship.

	e.  The financial debt unduly burdens an officer who has served honorably on active duty for 4 years and will continue to serve for at least another 6 years.

11.  On 7 August 2014, the applicant received a letter of appreciation for his support as a midshipman running mate during the summer of 2014.	

12.  Title 10, U.S. Code (USC), section 2005, provides the law on reimbursement requirements for educational assistance from the Armed Forces.  It provides that the Secretary concerned may require any person provided advanced education assistance to reimburse the United States in an amount that bears the same ratio to the total cost of advanced education provided.  It also provides that any amount owed by such person to the United States under such agreement shall bear interest at the rate equal to the highest rate being paid by the United States on the day on which the reimbursement is determined to be due and shall accrue from the day on which the member is first notified of the amount due.

13.  Title 10, USC, section 2005(a) states that the Secretary concerned may require, as a condition to the Secretary providing advanced education assistance to any person, that such person enter into a written agreement under the terms of which such person shall agree:  (1) to complete the educational requirements specified in the agreement and to serve on active duty for a period specified in the agreement; and (2) that if such person fails to complete the education requirements specified in the agreement, such person will serve on active duty for a period specified in the agreement.

14.  Title 10, USC, 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 (emphasis added) 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 certificate for qualification as a surface warfare officer, certificate for award of the Navy and Marine Corps Achievement Medal, and the letter from the Commanding Officer, USS Winston S. Churchill (DDG 81) are sufficient to show the applicant has been serving on active duty in the USN in a commissioned status since 16 April 2010.

2.  Although not provided for in his DA Form 597-3, the applicant’s commissioned service on active duty in the USN since 16 April 2010 serves the same purpose as would have been served had he been ordered to active duty in the U.S. Army albeit in a different branch of service.  The DOD is still getting the benefits of his service for the last 4 years and will continue to get benefits for the next 6 years whereas his ROTC contract required only 4 years of active duty based on his date of disenrollment.  As a matter of equity it would be appropriate to consider his commissioned service in the USN to have met the active duty obligation required by his ROTC scholarship contract.

BOARD VOTE:

____X___  ____X___  ____X___ GRANT FULL RELIEF 

________  ________  ________  GRANT PARTIAL RELIEF 

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION
BOARD DETERMINATION/RECOMMENDATION:

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 his ROTC scholarship contract to show that he satisfied his $43,404.97 ROTC debt under the original terms of the ROTC contract by successfully serving on active duty in the USN in a commissioned status for more than 4 years.



      _______ _   _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)                                         AR20140015684



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ABCMR Record of Proceedings (cont)                                         AR20140015684



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