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Dear School Partners,
On January 5, 2021, the President signed the Johnny Isakson and David P. Roe, M.D. Veterans Health Care and Benefits Improvement Act of 2020 into law [Public Law 116-315: https://www.congress.gov/bill/116th-congress/house-bill/7105]. This new law provides for the improvement and/or expansion of various GI Bill® programs.
Please be aware that the law has changed regarding the way education overpayments and debts are handled by the Department of Veterans Affairs (VA). VA is presently working through implementation of this new provision and its complexities. We are committed to providing you with regular updates through briefings, direct email campaigns and social media about VA’s effort to implement these new changes.
Public Law 116-315 Section 1019. Overpayments to eligible persons or veterans.
The new law requires schools and training providers to be financially responsible, instead of the student, for benefits paid directly to an educational institution for Post-9/11 GI Bill and other VA education programs. This applies to tuition and fee payments and Yellow Ribbon program payments under the Post-9/11 GI Bill (including under the Edith Nourse Rogers STEM Scholarship) and to advance payment of benefits under the various GI Bill programs. This applies without consideration of whether the overpayment was the result of the willful or negligent reporting failure of the school and it applies even if the debt is due to the student dropping one or more classes.
It should also be noted that debts created by VA follow the laws governing GI Bill programs, and they may be more than, less than, or equal to the amount the school would refund under its refund policy.
We will be discussing the changes in PL 116-315 during the Office Hours schedule for January 28 and 29, 2021.
What does this mean for Schools?
Currently, VA payment systems for the Post-9/11 G.I. Bill establish debts against students or schools. A school debt is established when a student terminates enrollment on or before the first day of the term and VA has paid the institution tuition and fees (and in some cases Yellow Ribbon). A student debt is created after the first day of the term when the student reduces or terminates during the term. When a debt is established, either the student or the school is notified of the debt and next steps to address the overpayment.
Changes to the Overpayment and Debt Process
Section 1019 modifies the way overpayments associated with benefits paid directly to the school are treated. The law now treats overpayments of tuition and fees or Yellow Ribbon payments made directly to the school as debts against the educational institution and not the student. Educational institutions will be held liable when overpayments are created as the result of:
- the willful or negligent failure of an educational institution to report, as required by law, to VA excessive absences from a course, or discontinuance or interruption of a course by the Veteran or beneficiaries or;
- the willful or negligent false certification of enrollment by an educational institution; or
- a benefit payment sent directly to an educational institution on behalf of an eligible Veteran or beneficiary, such as tuition and fees, Yellow Ribbon, Advance Payment or the STEM Scholarship.
What do schools need to do?
At this time, VA recommends that you do not refund any payments sent directly to your institution to GI Bill beneficiaries regardless of your institution’s refund policy. Until VA updates its information technology systems and processes, schools will not be immediately notified of these additional debts. VA will notify you of these additional debts at a future date. As stated previously, these debts may be more than, less than, or equal to the amount that your institution would otherwise refund to a student under your institution’s policies.
If you have any questions, please contact the Education Call Center at 1-888-442-4551, Monday – Friday, 7:00 a.m. – 6:00 p.m. Central Time so we may work with you and the school to take action. We will be actively monitoring our Education Call Centers and social media outlets for any questions or concerns.
Respectfully,
Education Service
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