PROCEEDINGS

	IN THE CASE OF:       

	BOARD DATE:             11 March 1999               
	DOCKET NUMBER:     AC98-09413
                                                AR1998001126

	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.  

	Mr. Loren G. Harrell		Director	
	Mr. Clark .		Analyst	

  The following members, a quorum, were present:

	Ms. Celia L. Adolph		Chairperson	
	Mr. Van B. Cunningham		Member	
	Mr. Curtis L. Greenway		Member	

	The applicant and counsel if any, did not appear before the Board.

	The Board considered the following evidence:

	Exhibit A - Application for correction of military 
                records
	Exhibit B - Military Personnel Records (including
	            advisory opinion, if any)

FINDINGS:

1.  The applicant has exhausted or the Board has waived the requirement for exhaustion of all administrative remedies afforded by existing law or regulations.

2.  The applicant requests that she be relieved of her responsibility to repay her Army ROTC scholarship loan in the amount of $7,950.00.  She states that she does not feel that she should have to repay the loan since she is fulfilling her military obligation by serving as an officer in the Marine Corps.

3.  On 23 August 1995, at age 19, the applicant signed an ROTC contract and was enlisted in the Army Reserve as a cadet.  On 31 October 1996, she requested disenrollment from the Army ROTC in order to enter the Navy ROTC program and her request was approved.  At that time she was notified that she was in breach of contract and had incurred a debt of $7,950.00 (which, on 
7 March 1997, she elected to repay in monthly installments); and that failure to repay that amount would result in her being ordered to active duty in the Army.

4.  On 10 March 1998 she was appointed a second lieutenant in the Reserve of the United States Marine Corps.

5.  On 19 January 1999 the Board was advised by the Army Review Boards Agency Legal Advisor that legally the ROTC contract in question was between the applicant and the Department of the Army; that she understood that her financial and service obligation was to the Army; that she agreed to repay her scholarship monies in lieu of being called to active duty in the Army; and that there is no change in circumstances which would warrant relief from the debt.  However, there was no objection to granting relief as a matter of equity.

CONCLUSIONS:

1. As a matter of law, the applicant is not entitled to the relief requested.  She signed a valid Army ROTC contract and is therefore bound by the terms of that contract.

2.  Although she willingly breached her ROTC contract with the Army and was aware that she would have to repay Army ROTC scholarship funds that she had received, she did so with the sole intention of serving in another branch of service.  She subsequently completed her ROTC contract with the Navy and was commissioned as a second lieutenant in the Marine Corps.  

3.  Although the Board does not approve of the applicant's breach of contract, regardless of the basis for such action, her military service to the country, beginning in the grade of second lieutenant, warrants both equity and compassion consideration.

4.  In view of the foregoing, the applicant’s records should be corrected as recommended below.

RECOMMENDATION:

That all of the Department of the Army records related to this case be corrected:

a.  by voiding the $7,950.00 debt incurred by the individual concerned as the result of her Army ROTC scholarship loan; and

b.  by returning to her the amount of any payments that she made on this loan.

BOARD VOTE:  

CLA_____  VBC____  CLG____  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

		______________________
		        CHAIRPERSON

INDEX

CASE ID	AC98-09413/1998001126	
SUFFIX		
RECON	YYYYMMDD	
DATE BOARDED	1999 March 11	
TYPE OF DISCHARGE	(HD, GD, UOTHC, UD, BCD, DD)	
DATE OF DISCHARGE	YYYYMMDD	
DISCHARGE AUTHORITY	AR . . . . .  	
DISCHARGE REASON		
BOARD DECISION	GRANT 	
REVIEW AUTHORITY		
ISSUES         1.	128.10	
2.		
3.		
4.		
5.		
6.