PROCEEDINGS

	IN THE CASE OF:        

	BOARD DATE:            13 February 2001
	DOCKET NUMBER:    AR2000037517

	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. Carl W. S. Chun		                      Director	
	Mr. Walter Avery, Jr.		                      Analyst	

  The following members, a quorum, were present:

	Ms. June Hajjar		Chairperson	
	Mr. Harry B. Oberg		Member	
	Ms. Shirley L. Powell		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 his debt to the Army be waived.

3.  The applicant states that the idea of serving an active duty contract while simultaneously repaying a Reserve Officer Training Corps (ROTC) scholarship seems unfair.  He acknowledges that he is not serving in the Army as dictated by the terms of the contract, but believes that his service in the Marine Corps (USMC) should be considered as satisfaction of his debt to the Department of Defense. 

4.  The applicant’s military records are not available.  The applicant provided the documents herein.

5.  On 5 March 1996 the applicant acknowledged that he had received written notification on 21 December 1995 that he was in breach of his 3-year Army ROTC Scholarship.  The applicant promised to repay his scholarship in lieu of being ordered to involuntary active duty in an enlisted status.  His request was accepted and he was directed to repay $18,369.00 in scholarship funds.

6.  Evidence submitted by the applicant shows that he enlisted in the USMC Reserve on 11 January 1997, entered active duty on 8 June 1997, and after completing the Officer Candidate Course was commissioned and is currently a first lieutenant on active duty in the USMC.

7.  On 2 February 2000 the Defense Finance and Accounting Service (DFAS) informed the applicant that $627.50 a month for 24 months would be withheld from his pay to satisfy his ROTC indebtedness.

8.  As part of a scholarship enlistment in the ROTC, an individual must sign a 
DA Form 597-3, which is the agreement between the Army and a potential ROTC cadet.  That form contains the promises made between the Army and the potential cadet, and includes what action the Army will take in the event that a cadet fails to successfully complete the terms of the contract.  The applicant acknowledged that he understood and agreed that if he was disenrolled from the ROTC program during Military Science IV he could be called to active duty for a period of 4 years.

DISCUSSION:  Considering all the evidence, allegations, and information presented by the applicant, together with the evidence of record and applicable law and regulations, it is concluded:

1.  The applicant argues that his service in the USMC should be taken into consideration, and the prospect of repaying a ROTC scholarship while serving on active duty is unfair.  In actuality, if the applicant had been ordered into the Army as a Private E-1 in 1997, in accordance with the terms of his ROTC contract, his base pay would have been $833.00 monthly, not the $1,725.00 of a 2LT.  In this sense, the applicant has obtained a financial advantage from the Department of Defense because he obtained the benefits of a college education, declined to repay the money the taxpayers expended on his education and seeks to escape the breach of contract sanctions by still declining to repay the money while serving as an officer – a position he would not hold had the sanctions been applied.

2.  Nonetheless, it is the opinion of the Board that the applicant’s service in the USMC, while not an authorized method of repayment of an ROTC debt, should be taken into consideration.  The applicant had an option of being ordered to active duty to satisfy his ROTC debt and he has now served in excess of 3 years on active duty in the USMC.  The Board accepts his USMC service toward repayment of his Army ROTC scholarship debt and will recommend suspension of repayment.

3.  The Board’s finding for suspension of repayment will become effective upon the date of approval of these Proceedings.

4.  Suspension will remain in place pending the applicant’s successful completion of at least 4 years of continuous active duty as an officer.  If the applicant fails to complete the 4 years of active duty service, beginning from 8 June 1997, collection will be resumed with credit granted at the rate of 25 % for each year already served.

5.  Furthermore, at the completion of the applicant’s 4 years of service the debt will be remitted and any monies already collected will be returned to him.

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

RECOMMENDATION:

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

	a.  suspending collection efforts as of the approval date of these Proceedings pending the individual’s successful completion of at least 4 years of active duty service as an officer;

	b.  showing that upon completion of 4 years of active duty service his debt is remitted and any monies already collected will be returned to him;

c.  correcting his Army ROTC contract to show that he will satisfy the service obligation under the original terms of the contract as a commissioned officer in the USMC;
	d.  monitoring the applicant’s status to ensure he completes 4 years of active duty service.  If he fails to complete 4 years of service, DFAS will initiate recoupment action but grant him credit of 25% for each year already served; and

2.  That so much of the application as is in excess of the foregoing be denied.

BOARD VOTE:  

____jh___  ___hbo__  ___slp__  GRANT AS STATED IN RECOMMENDATION

________  ________  ________  GRANT FORMAL HEARING

________  ________  ________  DENY APPLICATION

		______________June Hajjar_______
		               CHAIRPERSON

INDEX

CASE ID	AR2000037517	
SUFFIX		
RECON	YYYYMMDD	
DATE BOARDED	20010213	
TYPE OF DISCHARGE	(HD, GD, UOTHC, UD, BCD, DD, UNCHAR)	
DATE OF DISCHARGE	YYYYMMDD	
DISCHARGE AUTHORITY	AR . . . . .  	
DISCHARGE REASON		
BOARD DECISION	 	
REVIEW AUTHORITY		
ISSUES         1.	128.10	
2.		
3.		
4.		
5.		
6.