Indebtedness for Nonfulfillment of Active Duty Commitment

A doctor requested reconsideration of a decision in which GAO concluded that he was indebted to the United States for the $17,137.08 which he received in scholarship benefits while participating in the Armed Forces Health Professions Scholarship Program. In return for being provided with the cost of books, tuition, miscellaneous fees, and a monthly stipend, program participants must promise to fulfill an active duty obligation of at least 1 year for every year of participation in the program after graduation from professional school, or reimburse the full cost of the financial assistance. The doctor, in this case, applied for and was granted a discharge from the Navy as a conscientious objector. The doctor maintained that he was obligated to repay only the amount that represented tuition, books and miscellaneous fees, and contended that the stipend constituted a salary which was not within the scope of other educational costs. GAO found that the stipend was part of the total benefits since participants in the Navy program are not required to perform military duties while attending school other than while on active duty. Active duty is paid for separately, therefore, the stipend was part of the total benefit paid to the doctor and must be repaid. The prior decision was affirmed.