Overpayment of Benefits

*Proactive communication with your Academic Advisor and School Certifying Official will help prevent most overpayment debt situations with VA.

Repayment of benefits may be necessary under the following conditions:

  • Drop/withdrawal below required credit load
  • Receipt of benefits for courses not applicable to current program
  • Receipt of grade for which no credit is earned, such as “F”, “I”, “NB”
  • Being academically disqualified/suspended from degree program

Mitigating circumstances

These are circumstances beyond the student’s control that prevent the student from continuing in school. Some examples: prolonged illness or injury, death in the immediate family or an unavoidable change in employment. ¬†Proof of circumstances must be provided to School-Certifying Official before it can be reported to VA.

Steps when you receive an overpayment notice

  • Contact VA immediately
  • Contact School Certifying Official

Actions if overpayments are not paid:

  • Add interest charges and collection fees
  • Withhold future benefits to be applied to debt
  • Debt turned over for collection
  • Federal lawsuit for collection of debt
  • Withhold approval of VA home loan guarantee
  • Garnish federal income tax return