Repudiated contracts

I figured something like this would happen to someone.

Among the officers selected for involuntary separation are 40 who had "GRADSO" contracts. This means they had agreed, upon commissioning, to an additional service obligation in return for the promise of attending graduate school at the Army's expense.

Unfortunately for them, "The separation decision is administratively final, and, as a result of that separation, there is no mechanism for compensation," according to the an Army spokesman. [Source]

It doesn't matter how much of their additional service obligation they've completed. The Army is simply abrogating the contract.

This concerns me because I has an additional service obligation for my post 9/11 GI Bill. In return for continuing my service through 2018, I get to pass on my college benefits to my children.

However, if I get handed a pink slip at any point, it doesn't look like I'll get to do that. At this point, I'm not really at risk, but still ... thumbs down.