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Education and Training

Debt Management Center

1.   I am curious as to why it is necessary for the Debt Center to send a letter then an invoice?

The RPO sends a detailed letter explaining the changes in benefit eligibility. DMC sends the first notice of indebtedness (NOI) with the payment coupon approximately 2- 10 days later

2.   Why can't it be done all in one letter?

DMC and VBA are currently investigating this.

3.   Why would they send both the 1st and 2nd NOI at the 30-day mark?

The first DMC letter or 1st NOI is sent 2-10 days after debt is created by RPO. The 2nd NOI is sent 30 days after the 1st NOI (unless a dispute is received; which delays the next letter until after the dispute is resolved).

4.   Are there any plans to offer self-service options for schools to check for electronic payments or to check to see if returns to the DMC have been processed?

We are currently working with OIT to create a self-service portal for Veterans. At this time, we are unsure how schools will be impacted by this effort.

5.   Items to include on the inquiry/dispute?

Items to include when submitting a dispute:

 ● Student’s first name, middle initial, last name
 ● Last 4 digits of student’s SSN or file #
 ● School name and facility code
 ● Debt amount disputing
 ● Detailed explanation of dispute

6.   Can we send uncashed checks to the DMC from chapter 31 benefits?

No, DMC does not deal with Chapter 31 benefits paid to schools. Please contact the RO for instructions on how to return those payments.

7.   How would a school make sure the DMC has the correct mailing address for debt letters?

DMC debt letters are sent to the address on record in WEAMS. Please work with the SAA and ELR to ensure the correct address is listed in WEAMS.

8.   Information to be included in a Debt Management inquiry?

Items to include when submitting a dispute:

 ● Student’s first name, middle initial, last name
 ● Last 4 digits of student’s SSN or file #
 ● School name and facility code
 ● Debt amount disputing
 ● Detailed explanation of dispute

9.   Will the debt management center ever have an "SCO hotline" like the education benefits side does? It is really helpful!

Thank you for the feedback – we will take this idea into consideration.

10. Can you pay DMC thru ACH return payment if you are not returning the full payment for a student (i.e., student's fees changed)?

No, the ACH return payment only allows the school to return the full payment.

11. I am wanting to bring up the issue that you receive a debt letter for a debt for an enrollment period. Time starts ticking as to when the payment must be paid before it goes to the treasury. The issue is if when a separate debt is created, the time doesn't start over for the new debt. It is added to original debt and much less time is given to make the payment. I would like to see each debt to have their own timeline. We have had to rush payments because we went right to the last debt letter notice giving 60 days to make payment on a new debt just created.

We understand the challenge this can cause for schools and can work with schools individually if they contact us before referral via email. VA’s future financial management system is being upgraded to facilitate individual debt referrals to TOP rather than an aggregate amount.

12. For Debt Letters is it possible to send the letters to the Certifying Officer? We sometimes have difficulty with delayed communication as we work at a large University and the letters are sent to the University, not a specific department of contact person.

DMC debt letters are sent to the address on record in WEAMS. Please work with the SAA and ELR to ensure the correct address is listed in WEAMS.

13. Our auditors are wanting us to show proof of student debt instead of college debt. Is there a way to receive the student debt letter and the college debt letter?

Due to student privacy, we are unable to provide student debt information to the schools.

14. What can SCOs do with overpayments that need to be refunded to the student if the SCO or the school is unable to reach the student to receive the refund? Funds are returned to VA but is sent back to the school because there is no active debt on the student to apply the returned funds. This specifically applies for students who were charged tuition and fee debts when they were intended for the school.

In some cases, DMC can apply funds to student debts if the school requests and a debt balance exists. Otherwise, DMC is unable to assist.

15. Is there anything in the works for this situation? A military member transfers entitlement to a dependent, but doesn't meet obligation date. Debt Management charges the student the debt, should the debt be charged to the veteran?

The law is specific that TOE debts are owed by both the Veteran and the dependent. Current procedure is to create the debt under the dependent’s SSN, system limitations prevent DMC from collecting from both parties concurrently.

VA’s future financial management system is being upgraded to facilitate this type of collection.

16.   I'm sorry. Why would someone who passes owe a debt? Shouldn't it be forgiven?

Unable to answer without additional context.

17. For DMC - If a debt has been referred to TOP when will it fall off the school’s debt report?

A debt will remain on a school’s debt list until it has been paid in full. It can take 2-3 weeks between when the TOP offset occurs and when funds are transferred to DMC to apply.