It’s payback time: VA starts collecting $3,000 emergency funds
The good news: VA apparently is “more efficiently” cutting checks for veterans to attend college this semester. In fact, as of Feb. 5, almost 90 percent of enrollments for the 167,000 veterans submitted to VA for the Post-9/11 GI Bill had been paid out, VA said. And all those claims submitted by Jan. 19 were paid.
The not-so-good news? VA already is pursuing repayment of the $3,000 advance payments of Post-9/11 GI Bill benefits it made to ease the burden on students waiting for delayed benefits payments. According to a report by Rick Maze in Military Times, VA wants the $3,000 back, interest free, within one year, and requires a monthly payment plan, which would mean monthly payments of $250.
The names of anyone who does not respond to VA’s request for recoupment will be turned over the Treasury Offset Program, which can garnish salaries or tax refunds to collect money owed the federal government, the story said.
It all just seems a bit aggressive, especially given the months of financial hardship and uncertainty many of the first crop of Post-9/11 GI Bill recipients went through while waiting for their payments last fall semester. Many students were forced to live off of savings or credit cards, or even drop out of school, while waiting for payments that often were months overdue.
Many colleges and universities — already cash-strapped themselves in our tough economy — also felt the strain for extending a helping hand to veterans in the form of emergency loans or generous deadline extensions on due dates for student bills.
The $3,000 advance payments should, of course, be paid back. Unfortunately, many of those who were forced to take the payments in the first place likely still are struggling to regain their financial footing.
VA is offering an alternate payment plan for those experiencing financial hardship. Being a successful college student is difficult enough when all conditions are ideal. Let’s hope veterans will consider the alternate repayment route to avoid another financially stressful semester.
March 31st, 2010 at 12:09 pm
I see that you have listed the repayment plan as being $250 per month. This week’s Navy Times Edge Booklet fatured a note indicating that the repayments would be defaulted to $750 per month. Indeed I phoned the VA today and was told that my BAH would be reduced by $750 per month until the entire $3,000 was recouped. I was one of the many that you mentioned that were experiencing severe delays at the beginning of the program. And you are correct in that I am still trying to recover from months with no benefits. A loss of $750 per month will be no less than devastating to my budget. Guess we’re right back where we started…
March 31st, 2010 at 12:10 pm
I meant “featured.”