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Dear School Certifying Official (SCO),
Effective July 8, 2024, certain tuition and fees and Yellow Ribbon debts will be recouped from subsequent, congruent (there is at least one day of overlap) payments for the same student. There will be no formal notification (such as a letter or email) that the funds were recouped.
Example:
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SCO certifies the term 09/01/2024 – 12/15/2024 for 12 in-residence credits with a tuition and fees of $10,000.00 for a student.
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The Department of Veterans Affairs (VA) pays the certification and releases $10,000.00 to the school for the student.
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The student drops prior to the start of the term. The same student signs up for and is certified for the mini-term of 10/01/2024 – 11/15/2024 for 6 in-residence credits with a tuition and fees of $5,000.00.
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The VA will not release any tuition and fees payment for the mini term but will instead reduce the outstanding tuition and fees debt for that student by $5,000.00.
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No special correspondence will be sent to the facility regarding this term other the initial debt letter.
If the facility has already submitted a repayment of $10,000.00 to the Debt Management Center (DMC), VA will send the $5,000.00 to the facility.
Additionally, the following information is being shared from the DMC.
As you have been previously notified, the VA payment system will undergo modernization upgrades to facilitate the integration of Post-9/11 GI Bill (Chapter 33) payments processing from the Benefits Delivery Network (BDN) to the Enterprise Management of Payments, Workload, and Reporting (eMPWR) system. DMC will experience impacts to their systems during the period beginning June 26, 2024, through July 8, 2024.
Schools will see delays in payment application during the system transition. DMC anticipates payments received information will update during the week of July 8, 2024, through July 12, 2024. They request you contact them after July 12, 2024, if you have been unable to verify application of a payment during this time. Your payment will not be considered late and will reflect the date DMC received it once it is posted.
Once system updates are completed, beginning July 8, 2024, schools should be aware of the following additional changes:
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Debts for different terms will be established and collected separately in the VA system. Instead of one debt balance per student per facility, VA’s system will have a separate debt balance per term per facility per student.
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DMC letters will reflect the use of additional deduction codes other than 75 for school debts which impacts pay.va.gov payments. It will be critical for schools to use the correct deduct code from the top right of their DMC letter as well as the correct payee in order for payment to apply to the proper debt.
 The SCO Handbook will be updated to incorporate these new processes. If you have any questions related to your institution’s Post-9/11 GI Bill tuition, fees, or Yellow Ribbon debt(s) with VA, please contact DMC using https://ask.va.gov using the subject “Veterans Affairs-Debt” and the topic “A School Official.”
VA thanks you for your patience during this process.
Respectfully,
Education Service
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