The Department of Defense funded Science, Mathematics, and Research for Transformation (SMART) Scholarship-for-Service Program provides merit-based scholarships to bachelor’s, master’s and doctoral students pursuing STEM degrees. The application process is rigorous and each scholar incurs a service obligation of one year for every academic year funded.

As part of the program, scholars are assigned to a Sponsoring Facility (SF). It is there that they will both complete their summer internship and work following graduation. Oftentimes, however, a scholar finds themselves placed in a SF that is not the right fit for their skill set. Denial of a scholar’s request for transfer to a new SF forces the scholar to make a difficult decision: either complete the service agreement, or withdraw from the program and subject themselves to monetary recoupment of the scholarship.

For those who have ended their relationship with SMART prior to completing their service obligation, a debt is established on a prorated basis; any unearned funds will be recouped by the government. However, a scholar does have the right to contest the validity of the debt or request a waiver of any valid debt.

How Can I Appeal My SMART Scholarship Debt?

A request for review of the validity of the debt received in a timely manner will stay the referral of the debt to the Defense Finance and Accounting Service (DFAS). This temporarily halts the initiation of collection activity, pending the review outcome. The same holds true for waiver requests.

When appealing a SMART debt, it is important to have a profound understanding of the program itself and the laws governing its implementation. One must be aware not only of the circumstances surrounding an individual’s debt, but also be versed in all factors the Agency considers when determining if a waiver is appropriate in any given case.

Those facing debt following their participation in the SMART Program are not encouraged to appeal on their own. Any misstep in the appeal process—such as failing to raise specific arguments—could result in a debt of hundreds of thousands of dollars: a financial burden which might have been alleviated otherwise.

Tully Rinckey attorneys understand that issues involving financial issues can be challenging and they will handle your matter with the attention it deserves. If you have additional questions about the financial issues faced by military personnel, our team of attorneys is available to assist you today. Please call 8885294543 to schedule a consultation, or schedule a consultation online.

Eric Duncan is an Associate in Tully Rinckey PLLC’s Buffalo office, where he focuses his practice around military law. Prior to joining Tully Rinckey, Eric served in the Infantry of the United States Marine Corps. After transitioning from military service, Eric completed law school, where he conducted research into veteran groups and resources and worked as a founding member of the Veterans Legal Practicum at the University at Buffalo School of Law. Eric takes pride in defending our nation’s men and women in uniform.