Overpayment of Benefits | Chandler-Gilbert Community College
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 Veterans Services

Overpayment of Benefits

 What Causes an Overpayment?

Veterans may receive an overpayment of educational benefits, and as a result, owe funds back to the Department of Veterans Affairs for the following reasons:

  • Complete withdrawal from school
  • Withdrawal from one or more courses which changes enrollment status
  • A non-punitive grade is received
    (Non-punitive grades at CGCC are I(Incomplete), Z(No credit),
     and W (withdrawal))
  • Change in dependency status
  • Taking courses that do not apply to the declared degree program

This list is not all inclusive and other reasons may also cause an overpayment.

What is Next?

If any of the above circumstances should occur, promptly notify Veterans Services so that the proper steps can be taken. Under certain circumstances, the VA will allow some of the money to be kept, depending on mitigating circumstances. Mitigating circumstances are circumstances beyond the student's control that prevent the student from remaining in class. If you feel your situation warrants mitigating circumstances, you must notify the CGCC Veterans' Services Office or the Department of Veterans' Affairs.
How Will I Be Notified?

When an overpayment is created, the Muskogee Regional Processing Center sends a letter to the student explaining the debt, followed within a few days by a letter from VA Debt Management. This letter contains a payment remittance slip with a tracking number, which should be included if you send payment to the VA.

There is contact information for Debt Management in the letters. If the VA does not hear from the student, the overpayment will be recouped from future monthly benefits, possibly with interest charges added to the unpaid balance due.
If you have any questions concerning the amount of an overpayment, you should contact the Department of Veterans Affairs at 1-888-442-4551.