Dear GI Bill® Student,
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). This new law provides for the improvement and/or expansion of various GI Bill® programs.
Please be aware that the law has changed the way GI Bill program 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 direct email campaigns and social media about VA’s efforts to implement these new changes.
What does this mean to me?
The new law requires schools and training providers to be financially responsible, instead of the student, for benefits paid directly to an educational institution. 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.
Currently, VA payment systems for the Post-9/11 GI 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 payments). A student debt is established when the student reduces or terminates enrollment after the first day of the term. When a debt is established, either the student or the school is notified and provided next steps to address the overpayment.
What do I need to do?
At this time, there is no action required from you. If you have a change of enrollment which results in an overpayment of benefits associated with tuition and fee charges, you will still receive an automated notification from VA indicating the tuition and fee and/or Yellow Ribbon debt amount to be collected. However, VA will not collect the debt(s) from you. Rather, VA will collect this amount from your school. In turn, your school may require you to pay any outstanding balance for tuition and fees. VA will no longer manage your tuition and fee debts at that point - schools will hold these debts. You will have to go through your school if you owe money for dropping a class or withdrawing enrollment and your school may reach out to you for the debt. It is important that you work with them to resolve any issues.
You will still be responsible for repaying any debts associated with the monthly housing allowance and the books and supplies stipend to VA.
If you have questions or concerns:
Please contact the Education Call Center at 1-888-442-4551, Monday – Friday, 7:00 a.m. – 6:00 p.m. Central Time.
Respectfully,
Education Service
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