Emergency Advance Payment Recovery Details

Last month, the Veteran's Administration (VA) sent out letters to those who received GI Bill emergency advance payments explaining how the VA plans to recover the money. The VA's Debt Management Center is heading up the money recovery program, which involves numerous steps.

Veterans have three basic repayment options:

• Those who are receiving benefits may choose to have the VA deduct $750 per month (starting in April) from the GI Bill monthly benefit until the debt is repaid.
• Payment plans may be set up directly with the VA Debt Management Center for those who cannot afford the $750 per month deduction.
• Those who are not receiving benefits, or will graduate before the debt is repaid, should contact the Debt Management Center to arrange a payment plan.

Should one of these repayment options not be selected, the VA will recoup the money it advanced veterans in one of two ways:

• Automatically deduct $750 from each monthly veterans GI Bill benefit check, until the debt is repaid.
• Deduct funds from future income tax refunds until the advancement amount is paid in full.

The VA Debt Management Center letter explains veteran’s rights, options, and responsibilities. Those who do not contact this organization and state their preferable repayment plan should be prepared to accept the automatic deductions the VA will set in place to retrieve funds. Servicemembers have until April to re-structure their budgets and find ways to make up for the lower amount they’ll receive until their debts are repaid.

Share This

Email