VA is aggressive in its efforts to collect justified debts and is serious about ensuring that Federal funds are not misused or expended fraudulently.
The student should pay legitimate overpayment debts in full within 30 days after the VA sends notification of the debt to the student. If the debt is not repaid promptly, VA may take the following actions:
- add interest charges and collection fees to the debt
- withhold future benefits and apply them to the debt
- turn the debt over to a private collection agency
- file suit in federal court to collect the debt
- withhold approval of the veteran's VA home loan guarantee
- collect the debt from the student's federal income tax refund.
For instructions on how to repay an overpayment debt, go to http://www1.va.gov/debtman/.