Avoiding Overpayments
As a Department of Veterans Affairs (VA) educational benefits recipient, it is
important for you to understand what you can do to help yourself avoid the financial burden that accompanies an overpayment. Try to follow the guidelines listed below. Hopefully, they will help.
Report Changes in Enrollment
Promptly report any changes in your enrollment to the school and to the VA. If you notify the school, and not the VA, it may take longer to correct your payments. If you let the Veterans Representative at WVU-P know about any changes as soon as they happen, he or she will report them to the VA promptly. The sooner VA is notified, the greater the possibility that an erroneous check can be prevented.
Remember that a VA payment for a month of school attendance is normally made during the following month, e.g. the check for attending school in October will normally be received in November. If you receive a check during the month following a change in your enrollment, make sure that you are entitled to the check before cashing it. If the dollar amount has not changed from the previous check and you have reduced the rate of your training (i.e.. went from full-time to 3/4 time.), then you are probably not entitled to the full amount on this check. If this is the case, you are receiving an overpayment and will eventually have to pay the money back to the VA.
Understand the Consequences of Changes
Understand the school's grading system. The school may have "nonpunitive grades." VA defines "nonpunitive grades", as those not used in computing the requirements for graduation. Common examples are as follows:
* An "I" grade for an incomplete course that is not made up during the time period required by the school.
* A "W" grade for withdrawing from a course.
* A "FIW" Failure Irregular Withdrawal.
* A "FW'" Failure Irregular Withdrawal.
Check on your school's grading policy with the registrar.
If you receive a nonpunitive grade, reduce or terminate your enrollment, the school will notify VA. Upon receipt of the notice, VA will reduce or terminate your benefits.
If you change your enrollment after the regular add/drop period at the school, VA will ask YOU for a statement explaining the events surrounding the change. The law states that no payments will be made for a course from which you withdraw, or for which you receive a nonpunitive grade, unless there are "mitigating circumstances" surrounding the change. VA defines "mitigating circumstance" as unanticipated and unavoidable events that interfere with a student's pursuit of a course.
Examples of events that VA may accept as mitigating are:
* Prolonged illness or serious injury.
* Severe illness or death in your immediate family.
* Unscheduled changes in your employment which were beyond your control.
* Unanticipated difficulties with child care arrangements made for the purpose of allowing you to go to school.
Examples of events that VA will not accept include:
* Withdrawal to avoid a failing grade.
* Dislike of the instructor.
* Too many courses attempted.
NOTE: You will normally be required to submit evidence to support your statement that the event was not anticipated and was beyond your control. For example, if you state that you had to withdraw from school due to an unscheduled change in your employment, you may be required to furnish a letter from your employer.
If you fail to provide a statement or supporting evidence or the reasons you give are not accepted as "mitigating circumstances," VA will reduce or terminate your benefits from the start of the term. You will be given the opportunity to provide a statement explaining a change in your enrollment before a final decision is made.
If An Education Overpayment Is Created
VA is required to take prompt and aggressive action to recover overpayments. The following are actions that may be taken if an overpayment is not promptly liquidated:
* Adding interest and collection fees to your debt.
* Withholding future benefits to apply to your debt.
* Referring your debt to a private collection agency
* Offsetting the debt from your federal income tax refund.
* Offsetting the debt from your salary if you are a federal employee.
* Filing a lawsuit in federal court to collect the debt.
*Withholding approvals of a VA home loan guarantee pending payment of the debt.
Further Information
For further information concerning overpayment, contact your local VA regional office at 1-800-827-1000.
WVU Parkersburg
Veterans Affairs Office
Room 1207
(304) 424-8210
