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Military Services

Policies and Procedures: VA Overpayment and
Debt Management

VA Overpayment and Debt Management

Students using VA education benefits may encounter overpayments when there are changes to the enrollment. Depending on when the enrollment changes happen, the VA could assign the debt to the student or the school. Here are ways you can identify who will be responsible for returning the overpayment to VA.

School is responsible when:

  • The student never attended any classes for which he or she was certified regardless of the reason for non-attendance
  • The student completely withdraws on or before the first day of the term (FDOT)
  • The school received payment for the wrong student
  • The school received a duplicate payment
  • The school submitted an amended enrollment certification, or an Amendment in VAONCE, and reported reduced tuition and fee charges, reduced Yellow Ribbon amount, or reduced both.
  • The student died during the term, or before start of the term
  • VA issued payment above the amount certified on the enrollment certification that was used to process the payment (VA data entry error)

 

Student is responsible when:

  • The student withdraws after the first day of the term
  • The student reduces hours whether the reduction occurred before or during the term
  • The school submitted a change in enrollment (on VA Form 22-1999b, or an Adjustment through VA-ONCE) and reported a reduction in tuition, fees, and/or Yellow Ribbon due to student action reducing or terminating training.
  • If a student drops a course and adds a course so that there is no net change in training time, any change to tuition, fees, and/or Yellow Ribbon is a student debt

 

Notification of debt:

  • VA will mail an overpayment letter outlining the debt and the academic period the debt is for
  • The Debt Management Center (DMC) then sends a letter with a remittance stub and instructions for returning the overpayment.
  • Overpayment must be returned to VA or the funds will be collected under the Treasury Offset Program, or a collection agency.

If you have questions about your debt, please contact the DMC.

Debt Management Center

Phone: 1.800.827.0648

Email: dmcedu.vbaspl@va.gov

 

Please be advised that if you received an overpayment for books and supplies or housing, the VA will assign the debt to the student. Only tuition and fees will ever be assigned to the school following the seven reasons above under school responsibility.