We all know the vital importance of checking out that LES, right? Overpayments, underpayments, missing money and magic money just happen sometimes. The military is a huge bureaucracy and so it is to be expected. My advice has always been if you receive an overpayment set the money aside and start the trail of phone calls. Eventually all overpayments will catch up with you and it will most likely happen at the most inconvient time.
The new GI Bill seems to be experiencing some of the same problems (no surprises there) but a system glitch is also not fully crediting accounts that are paid back and this is causing some GI Bill reeipients to possible lose their benefits when they need them the most!
Below is a snippet regarding the ordeal that an Army spouse went through with repayment of an overpayment — an overpayment she recognized and tried to get stopped, but was unable. She paid it all back but was still being threatened with a stop on her benefits — it took elected officials and a news story in order to get the mess cleared up.
If you are having any problems of this nature, leave your story in the comment section.
Fix of GI Bill overpayment snafu doesn’t end issue
EXCERPT–snip–
Kargus had several overpayment issues, but the nagging one involved the one-time book allowance and four months of living stipends she received erroneously last year.
She tried to get the payments stopped days after she got the first one. But like others, Kargus said she had problems last year when she tried to call a GI Bill hot line established by VA to answer questions.
She said she called as often as 15 times in one day without getting through to anyone. When calls were answered, Kargus said VA workers “were courteous, but did not have the power to do anything about my problems.”
“Every time I would call VA and ask them to please stop the payments, I was told that no mechanism was in place to resolve the issue and that I shouldn’t send any additional repayments because it would only clog the system,” she said.
Kargus said the friendly but unhelpful VA assistance continued through Aug. 9, when she spoke to an employee at the debt management center to try to figure out why she was still being threatened with a cutoff of benefits after repaying the $2,140 she had been told she owed.
Her check had been cashed, but VA officials could not explain what had happened to $791 of the payment.
Kargus said the call telling her that her debt finally was canceled came from Dan Osendorf, who heads the VA’s debt management center.
“He assured me my debt was cleared,” she said.
He also said the call center employee who told Kargus on Aug. 9 that he couldn’t help her “was new and made an error when telling me he could not fix my account.”
Kargus is hardly the only person with GI Bill overpayment and repayment problems. The House voted July 28 to set aside $100,000 in the 2011 budget for VA to pay for a report on how it accounts for payments and repayments.
Rep. Baron Hill, D-Ind., said he sponsored the amendment ordering the study after hearing many complaints.
“I understand that VA legitimately requires some payments to veterans and universities to be returned,” he said. “There can be instances of a student taking fewer classes than what was originally thought, accidental duplication payments. This is reasonable, to an extent.”
The trouble, he said, is that veterans and schools have difficulty getting an accurate account of payments and collections.
“In some instances, this has resulted in VA withholding further Post-9/11 payments to the student in question as they are credited with an outstanding debt, despite having already paid back the necessary accounts,” he said, describing a situation exactly like what Kargus faced.
“This is even after the returned checks have been cashed by the VA,” Hill said — again, exactly what Kargus said happened to her.
The report requested by Hill, and added to the 2011 VA funding bill by voice vote, would be due by Jan. 1. SOURCE LINK
My gripe is with the vague correspondence I receive from the VA, and my inability to get any clarification. The debt management center recording (the best I have done in getting through to them) refers you to the educational call centers that can do nothing to help and sending an e-mail elicits no response. I have received a letter stating that payments that I have proposed to wipe out a debt are acceptable, but it goes on to say that any benefits awarded to me in the future may be withheld until the debt is paid in full. Is this actually saying anything? I received a letter previously telling me that the payments I had proposed to pay back the 3K advance were acceptable, but they simply withheld my entire housing allowance to pay off that debt. I think that since it is pretty much impossible to get in touch with these folks, they could at least dispose of the ambigous writing in their letters and explain whether the payments will be deducted from future benefits or if the person is considered to be in default if they miss the first payment (by sending it in themselves…is that what is required?) If I could afford to send in these payments without receiving at least some of my housing allowance, I wouldn’t be so concerned about even having a payment arrangement.
I have been going through the same ordeal as Kargus went through for the past year. This last summer, I dipped into my savings and just kept sending the Debt Management Center (in MN) money until they stopped sending bills. I even have letters from them saying that I’m paid in full. However, they have reported to the VA in St.Louis that I am still delinquent (and they’ve reported the same to the credit bureaus). I just found out today that my education benefits are being withheld until I pay my “debt!” I don’t know what to do. I’ve contacted an advocate of Senator Klobuchar, but he tried helping me last year on the same issue with little success. The only difference now is that they are withholding all my benefits and I don’t have much savings left. Frankly, I’m at my wit’s end. If anyone reading this column knows who I can contact for help, I would be very appreciative.
My son was overpaid a portion of GI Bill money, and was able to call them BEFORE they even notified him he was overpaid. He suggested a deduction from his full time technician pay, which was accepted and completed within two months. Upon checking his credit report to purchase a car, he was denied, as the VA placed a garnishment on his report. To date, he has either called or email the VA every day since Nov 2010, with not one response to his request that the negative report be removed.
As a paralegal for the military and former finance employee, only a legal judgement sent to the payroll office qualifies as a garnishment. Anything else is just a debt repayment – which would not trigger a negative credit report. Also – the garnishment still isn’t showing as repaid.
I am concerned that the VA has so little value in our Soldiers they can’t even answer emails or the phone.
Who is taking care of our Soldiers?
I am also having an overpayment problem. I was told I was overpaid half of my tuition, which I believe is a mistake since two other veteran students are receiving almost double what the VA is telling me I’m supposed to be receiving. Then I get a letter from the debt management center that says my housing allowance is going to be repaid and when I call them they tell me that I had 30 days to have appealed in order to not having my housing allowance repaid, but that I was a week over that deadline. I explained that I never received word on only having 30 days but there was nothing that could be done. The question I have is whether or not there is any better way to resolve this…the VA is impossible to work with. I was told I would hear back from the VA regarding my appeal in 60-90 days and it’s been over 100 days and not a word. Where can we get help with this?!
I am having the same problem as all of the above people. I tried calling and got no answers also I , fax and have written letter for a appeal. any nothing! The system is a joke.