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An overpayment is a debt which the student owes the Department of Veterans Affairs. Most commonly, overpayment is the result of withdrawal from a course or courses after courses have been certified to the DVA.
To avoid overpayments, promptly report any changes in your enrollment to the school and VA. The sooner the change is reported, the greater the possibility that an erroneous check can be prevented.
Remember, VA payment for a month of school attendance is normally made during the following month. If you receive a check during the month following a change in your enrollment, make sure that you are entitled to the check before negotiating it. If the amount has not changed from the previous check and you have reduced the rate of your training, the chances are good that you are not entitled to this check. You should contact the DVA.
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 salary if you are a federal employee.
- filing a lawsuit in federal court to collect the debt.
- withholding approval of a VA home loan guarantee pending payment of the debt.
This information was taken in part from the VA Pamphlet 22-90-1 May 1990 issued by the Department of Veterans Affairs.
For more information, you may visit the Department of Veterans Affairs at http://www.gibill.va.gov.