Further Actions Needed To Resolve VA's Education Assistance Overpayment Problem

HRD-78-45: Published: Feb 17, 1978. Publicly Released: Feb 17, 1978.

Additional Materials:


Office of Public Affairs
(202) 512-4800

The Veterans Administration's (VA) educational assistance programs provide funds for tuition and living expenses to veterans and eligible dependents while in training. Since 1973, overpayments of these benefits have become a serious problem. During the 3.5 years ended December 31, 1975, overpayments totaled almost $1.3 billion, of which $298.2 million remained uncollected on December 31, 1975.

At the VA Los Angeles Office, overpayments were caused by delays in reporting training changes, issuance of special payments, poor processing practices, and the prepayment and advance payment provisions of the VA educational assistance law. The VA has taken some actions on recommendations in the March 1976 GAO report, but it still needs to: acquire additional compliance survey specialists; change its listing of overpayments to show accurate current balances; identify schools which may be liable for overpayments so that prompt collection action can be taken if the courts uphold the authority of VA to do so; conduct an additional test program which considers costs and benefits for automating the processing of status changes; further reduce special payments; make better determinations of the use of teletype notices to stop overpayments; implement improvements in collection letters; and set a date for completion of a data system on overpayment collection costs. If VA concentrated on minimizing causes of overpayments, its need for an elaborate collection system would be lessened.

Feb 11, 2021

Feb 1, 2021

Jan 14, 2021

Dec 10, 2020

Dec 9, 2020

Nov 12, 2020

Sep 30, 2020

Sep 28, 2020

Sep 21, 2020

Looking for more? Browse all our products here