An overpayment is a debt which the student owes the Department of
Veterans Affairs (DVA) . 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 MSU VA office. The sooner the change
is reported, the greater the possibility that an erroneous check can be
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.
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.