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Withdrawal Policy

WHAT HAPPENS WITH MY VA EDUCATION BENEFITS IF I DROP A CLASS?

Chapter 33 Post 9/ GI Bill®: The VA will pay the school directly for tuition and fees. The students will incur an overpayment with the VA for changes in enrollment. The VA will charge back tuition and fees to the school and will change back any differences in the adjusted housing allowance to the student. The student will also incur a debt with the school for tuition and fees.

Example:

  • Student is enrolled in the Fall for 12 credit hours in which is considered full-time
    • Tuition and fees total $1,956
    • The student is receiving $1,254 per month BAH

  • The student is failing math and wishes to drop the 3-credit hour class in October
    • The student will in incur an overpayment of $489 ($163 per credit hour) for the dropped class
    • The student's BAH will decrease from $1,254 per month to $1,003 per month AND he/she will owe back the difference in the adjusted housing allowance for the previous months.

Chapters 30, 1606, & 35: students will incur an overpayment with the VA based on differences in the adjusted housing allowance. The VA DOES NOT pay the school directly for tuition and fees.

Example:

  • Student is Chapter 30 and is enrolled in the fall for 12 credit hours in which is considered full-time
    • The student is receiving $2,210 per month BAH

  • The student is failing math and wishes to drop the 3-credit hour class in October
    • The student's BAH will decrease from $2,210 per month to $1,658 per month AND he/she will owe back the difference in the adjusted housing allowance for the previous months.

ALL students using Veteran Education Benefits - if the student remains in class and completes the course, the VA will pay for the class and continue paying the BAH, but the student's GPA will be affected. If the student fails a class and receives a “punitive grade” …i.e. F, the punitive grades doesn't count towards earned credit, but it used in determining progress toward graduation requirements. Since this grade counts toward graduation progress, the student is not required to repay any GI Bill®money back. The student may take the class again in an attempt to receive credit towards graduation.

When an account has an overpayment or debt you can expect the VA to take the following steps to collect the debt:

  1. The Regional Processing Office (RPO) that processed your payment will send a letter to you and/or your school explaining the debt and amount. The letter also indicates that you will receive further communication from the Debt Management Center (DMC) Note: Make sure your address information is up-to-date;

  2. Debt payments processed at RPOs are electronically transmitted to the DMC for the collection process. It generally takes 30 days for DMC to establish an account receivable in your name. Note: After you receive a debt notification letter from DMC, all payments should be sent to DMC and not the RPO;

  3. The school will receive a debt letter for your tuition and fees if using Chapter 33 benefits, in which the school will sent funds back to the VA on your behalf. Once funds have be submitted back the VA on your behalf you will incur a debt with the school for your tuition and fees. You will still have a debt with the VA for differences in housing allowance  

  4. You will receive an initial debt notification letter including your rights and obligations regarding the debt. You have 30 days to contact DMC and repay the entire debt, establish a repayment plan or request a waiver of debt. If you haven't contacted DMC within 30 days, they will begin to offset the debt amounts from future GI Bill®payments. Note: If you did not contact DMC within 30 days of receiving the initial letter, additional notification letters will be sent from DMC explaining collection efforts and what will be expected;

  5. Credit reporting agencies are notified approximately 90 days after initial notification of the debt only if the you do not contact DMC;

  6. Debt is referred to the Department of the Treasury approximately 90 days after initial notification of the debt only if you do not contact DMC.

If at any time during this process, you contact DMC to dispute the debt, request a waiver, or fulfill your debt obligation, the steps listed above are either suspended or amended.

Why is my check less than the amount I was told the monthly rate would be?

  • The most common reason a check may be less than the monthly rate is that checks are prorated based on the number of days in the month for which you are enrolled.

  • An overpayment was deducted from your payment

  • You reduced your training time after you received your award letter.

What should I do if I don't get my check?

First, verify that payment has been issued by contacting VA (you can use the "Ask a Question" tab or call 888- GIBILL-1 [888-442-4551]). In order for VA to reissue a check, at least one week must have passed since the original check issue date. Once the one-week period has passed, please call an Education Case Manager at 888- GIBILL-1 (888-442-4551) to assist you in getting another check. This process could take up to 6 weeks.

If you have a checking or savings account Direct Deposit is a simple, safe option for receiving your education benefits. Also, errors involving Direct Deposit can be corrected more quickly than a check can be reissued.

 

Contact Information:

Debt Management Center- 800-927-0648 or e-mail them at dmc.ops@va.gov.

Veteran Education Call Center- 800-442-4551

Eric Valdez - School Certifying Office- 815-835-6315 or eric.p.valdez@svcc.edu