College veterans get more time to pay back Uncle Sam for overpayments

VA extends Post-9/11 GI Bill overpayment period
By Rick Maze - Staff writer
Posted : Thursday Jun 2, 2011 12:02:16 EDT
Student veterans required to give back Post-9/11 GI Bill overpayments will get more time to do so under a new Veterans Affairs Department policy.

Previously, GI Bill overpayments had to be repaid before the end of the term, which in some cases left students paying thousands of dollars in a few months. The new policy gives them up to a year to make repayments.

The new repayment policy took effect on April 20 without fanfare. Sen. Jon Tester, D-Mont., who has pushed for the change, announced the new repayment rules on May 24. VA confirmed the rule change on Thursday.

Tester had pushed VA to change the rules after receiving complaints that students, who often were not at fault when excess tuition and fees was paid to a college or university, were given very little time to repay the money. In some cases, students were put in a position of repaying VA out of their own pockets while waiting on their school to pay them.

Although pleased that VA is giving veterans more time to pay, Tester said he still is not satisfied. He wants safeguards put in place to protect the credit records of veterans who end up owing money because of clerical errors, and he wants VA to come up with a way for schools that receive overpayments to directly reimburse the government without getting the student involved.
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GI Bill overpayment period