Policies and Procedures: VA Overpayment and
Debt Management

On January 5, 2021, the President signed into law the Johnny Isakson and David P. Roe, M.D. Veterans Health Care and Benefits Improvement Act of 2020 [Public Law 116-315: https://www.congress.gov/bill/116th-congress/house-bill/7105]. Under Section 1019, this changes the way education overpayments and debts are handled by the Department of Veterans Affairs (VA).

Public Law 116-315 Section 1019.  Overpayments to eligible persons or veterans.

The new law requires schools to be financially responsible, instead of the student, for returning tuition and fees overpayment under Post 9/11 GI Bill® (including under the Edith Nourse Rogers STEM Scholarship) and Yellow Ribbon program.  Walden University will return the funds to the VA on the student’s behalf, but any debt owed on the student’s account at Walden University will remain the student’s responsibility.

These are the reasons for which a debt will be established on Walden University: 

• The student withdrew from the course and received a W or F grade.
• The student received a non-punitive grade. Non-punitive grades are W and U grades.

Walden University will now be liable to return any unearned Post 9/11 GI Bill® (including under the Edith Nourse Rogers STEM Scholarship) and Yellow Ribbon program to the VA. This means that once the overpayment has been returned, there may be a balance on your account less than, or equal to the amount VA has requested to be returned.  Any balance owed will be due and payable to Walden University.

Students will continue to be responsible for returning the book stipend and housing payments to the VA. 

If you are impacted by this change after you withdraw from a course or receive a non-punitive grade, VA will mail you an overpayment letter that will explain the debt amount. If you have any questions, please feel free to call the VA at 1-888-442-4551.

Notification of debt

• VA Regional Processing Office will mail an overpayment letter to the school and send a copy to the student outlining the tuition and fee debt and the academic period.  Students are responsible for making payment to Walden University directly for any payments Walden submitted to the VA on their behalf.
• The Debt Management Center (DMC) then sends a letter with a remittance stub to Walden University with instructions for returning the overpayment.
• Walden University will return the tuition and fee overpayment to DMC. If student received a DMC letter for the book stipend or housing overpayment, student will need to return funds to DMC by following the instructions in the DMC letter.

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

Department of Veterans Affairs Education Center

Phone: 1.888.442.4551

Debt Management Center

Phone: 1.800.827.0648
Email: dmcedu.vbaspl@va.gov

GI Bill® is a registered trademark of the U.S. Department of Veterans Affairs (VA). More information about education benefits offered by VA is available at the official U.S. government Web site at http://www.benefits.va.gov/gibill.