BOARD DATE: 28 February 2017 DOCKET NUMBER: AR20150015542 BOARD VOTE: _________ _______ ________ GRANT FULL RELIEF ________ ________ ________ GRANT PARTIAL RELIEF ________ ________ ________ GRANT FORMAL HEARING _____x___ ___x_____ ___x____ DENY APPLICATION 2 Enclosures 1. Board Determination/Recommendation 2. Evidence and Consideration BOARD DATE: 28 February 2017 DOCKET NUMBER: AR20150015542 BOARD DETERMINATION/RECOMMENDATION: The evidence presented does not demonstrate the existence of a probable error or injustice. Therefore, the Board determined 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. BOARD DATE: 28 February 2017 DOCKET NUMBER: AR20150015542 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 forgiveness of his Reserve Officers' Training Corps (ROTC) scholarship debt in the amount of $6,044.00 and reimbursement of all payments he made toward this debt. 2. The applicant states he was an ROTC cadet under contract in 2007. He ceased his [academic] enrollment to enlist in the Regular Army (RA). He was aware his tuition costs would have to be paid back unless he repaid the debt through active duty service (expeditious call to active duty). He spent approximately 7 years on active duty, far exceeding the required 3 years, and his service was outstanding. Although his decision to disenroll from ROTC was in violation of his contract, his 7 years of active duty service should be more than sufficient to meet his debt obligation. When he disenrolled from the ROTC program, neither his recruiter nor his ROTC cadre informed him of the proper steps to enlist and repay his debt. He understands he was a scholarship cadet and he made the decision to enlist vice being commissioned. He is proud of that decision and he believes his debt has been paid by his service. He received notification from the Internal Revenue Service that he owed a debt to the government. 3. The applicant provides: * ROTC disenrollment notification memorandum dated 14 December 2006 * DD Form 214 (Certificate of Release or Discharge from Active Duty) ending on 3 January 2014 * Internal Revenue Service debt notification dated 19 February 2015 CONSIDERATION OF EVIDENCE: 1. The applicant enlisted in the U.S. Army Reserve (USAR) on 31 August 2005. In connection with this enlistment, the applicant executed a DA Form 597-3 (Army Senior ROTC Scholarship Cadet Contract) on 1 September 2005. This form shows: a. Paragraph 5 (Terms of Disenrollment), 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 duty the cadet agreed to serve or was ordered to serve. b. Paragraph 6 (Enlisted Active Duty Service Obligation), if the cadet were called to active duty for a breach of contract under the provisions of paragraph 5, he/she 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. 2. On 14 December 2006, following academic and performance counseling, the applicant's Professor of Military Science (PMS) notified him by memorandum of the initiation of disenrollment action from ROTC and placement on a leave of absence based on his withdrawal from the academic institution. He was advised of his right to request a hearing. He was 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 informed that as a scholarship cadet he could be called to active duty in an enlisted rank/grade of private (PV1)/E-1 or be required to repay scholarship benefits in the amount of $6,044.00 in lieu of a call to active duty. The PMS further advised him the final decision was with the Commander, U.S. Army Cadet Command (USACC). 3. On 19 December 2006, the applicant acknowledged receipt of the disenrollment memorandum and waived his right to a hearing and personal appearance in order to respond to the validity of the debt. In doing so, he acknowledged that: * the amount and validity of the debt as stated in the disenrollment memorandum is correct * by waiving his right, he waived the opportunity to present matters regarding his disenrollment and the amount/validity of the debt * waived his right to appeal the disenrollment and/or the amount and validity of the debt 4. Additionally, the applicant accepted a call to active duty within 60 days after completion of his current projected graduation date or upon withdrawal/dismissal from school, whichever came first and he also accepted an expeditious call to active duty. 5. The applicant's battalion commander recommended approval of the disenrollment with expeditious call to active duty. He further recommended the applicant repay his scholarship benefits. His senior commander also recommended approval with expeditious call to active duty 6. On 23 March 2007, the Commanding General (CG), USACC, approved the request for disenrollment and ordered the applicant disenrolled from the ROTC Program under the provisions of Army Regulation (AR) 145-1 (Senior ROTC Program: Organization, Administration, and Training), paragraph 3-43a(4), based on the applicant's withdrawal from the academic institution. The CG ordered him to repay the debt in its entirety ($6,044) and the CG's memorandum notified the applicant that: a. When the ROTC scholarship contract is breached, an obligation to the Army must be satisfied by repaying the cost of advanced educational assistance provided by the Army and that the amount of monies spent in support of his education was $6,044. b. The DA Form 5315-E (U.S. Army Advanced Education Financial Assistance Record) was provided to detail the debt and order the applicant to elect an option as far as paying the full amount in one lump sum payment or initiate a repayment plan. He was notified that the addendum with his election must be received within 14 days of his receipt and failure to respond by the suspense date may result in the initiation of involuntary collection action. 7. The applicant's available records show he neither acknowledged or signed the Addendum nor made an election of the method to fulfill his contractual obligation (agreeing to pay the debt in one lump sum payment or in installments). 8. On 7 February 2007, the applicant voluntarily executed an 8 year enlistment contract in the USAR under the Delayed Entry Program and on 20 February 2007, he executed a 5 year and 17 week enlistment contract in the RA. His enlistment contract shows: * he enlisted in the rank/grade of private first class (PFC)/E-3 * he enlisted for an $11,000 cash bonus, the U.S. Army High Grad bonus, the U.S. Army Airborne bonus, and the U.S. Army College Fund ($62,100) 9. He completed training and held military occupational specialty 11B (Infantryman). He served two tours in Afghanistan. He reenlisted on 29 March 2011 receiving a $2,400 Selective Reenlistment Bonus. 10. He was honorably released from active duty on 3 January 2014 to attend civilian school. He completed 6 years, 10 months, and 14 days of active service. Among his awards and badges are the Army Commendation Medal (3rd Award), Army Good Conduct Medal (2nd Award), Combat Infantryman Badge, and the Afghanistan Campaign Medal with two bronze service stars. 11. On 19 February 2015, he received written notification from the Internal Revenue Service showing he had a debt of $1,314 owed to DFAS and that this debt would be collected by reducing his federal income tax refund as provided by law. REFERENCES: 1. AR 145-1 prescribes policies and general procedures for administering the Army's Senior ROTC Program. a. Paragraph 3-39 states the CG, USACC, is the approving authority for termination of scholarship and/or disenrollment. Paragraph 3-39c identifies the exception pertaining to 4-year scholarship winners discharged early from active duty. A scholarship will be terminated and the cadet disenrolled for any of the reasons listed in paragraph 3-43. b. Paragraph 3-43 states that non-scholarship and scholarship cadets will be disenrolled for a breach of contract. Sub-paragraph 3-43a states 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. One reason for disenrollment is a cadet's withdrawal from the academic institution. 2. Title 10, U.S. Code, 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. 3. 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 accepted an Army ROTC scholarship. He fully understood and accepted the terms of his enrollment. He then made a personal decision to withdrawal from the academic institution. As a result, disenrollment action from the USAR and ROTC program was initiated by his chain of command. 2. He agreed that if he were disenrolled from the ROTC Program for any reason, he would have to repay his scholarship debt or be ordered to active duty in the rank/grade of PV1/E-1 for an appropriate number of years. He failed to satisfy his contractual requirements of this program. As he was found in breach of his ROTC contract, he was accordingly notified of his disenrollment from the program. He waived consideration of his case by a disenrollment board. His disenrollment was ultimately approved by the appropriate official who ordered him to repay the debt. 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. He was not ordered to active duty. Instead, he voluntarily enlisted in the RA on 7 February 2007. His enlistment contract shows: * he enlisted in the rank/grade of private first class (PFC)/E-3 * he enlisted for an $11,000 cash bonus, the U.S. Army High Grad Bonus, the U.S. Army Airborne Bous, and the U.S. Army College Fund ($62,100) 4. In January 2014 upon his request, he was honorably was separated. He had completed 6 years, 10 months, and 14 days of active service, which far exceeded what he would have had to complete if he were ordered to active duty. On the surface, the applicant's enlistment and service in the RA appear to have served the same purpose as it would have had he been ordered to active duty. In other words, the Department of Defense received the benefit of his service. 5. However, by voluntarily enlisting, he received benefits that far exceeded what he would have received had he been ordered to active duty. His cash bonus alone ($11,000) far exceeded his debt. The evidence indicates that relieving him of his ROTC scholarship debt or any remaining portion thereof would amount to a windfall in light of the enlistment incentives he received. 6. He entered into a valid Army Senior ROTC Cadet Contract. He received advanced educational assistance in the form of ROTC scholarship monies from the U.S. Government in the amount of $6,044.00 that constituted a valid debt to the U.S. Government. //NOTHING FOLLOWS// ABCMR Record of Proceedings AR20150000953 Enclosure 1 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS ABCMR Record of Proceedings (cont) AR20150015542 2 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS Enclosure 1 ABCMR Record of Proceedings (cont) AR20150015542 6 ARMY BOARD FOR CORRECTION OF MILITARY RECORDS RECORD OF PROCEEDINGS Enclosure 2