Overpayment of Benefits


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



Repayment Situations

Repayment 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 a “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
  • Unavoidable change in employment

Proof of circumstances must be reported directly to the VA for review.

Action steps to take if you receive a debt letter from the VA

  • Call VA immediately at 1(888)442-4551
  • Contact MSC Campus Cache

The following situations may be applicable if debt is assigned to MSC due to changes in enrollment:

  • Academic holds prohibiting registration to be applied to student account.
  • 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