Graphic of an application for a VA home loan with the words "NOT APPROVED" in red written across the application.
Overpayment Penalties
VA will make every effort to collect justified debts and to ensure that VA benefits are not abused.

When an overpayment is created in a student's account, VA may take the following actions:
  • Add interest charges and collection fees to the overpayment debt.
  • Withhold future benefits and apply them to the debt.
  • Turn the debt over to a private collection agency.
  • File suit in federal court to collect the debt.
  • Withhold approval of the Veteran's VA home loan guarantee.
  • Collect the debt from the student's federal income tax refund.
The Debt Management Center is responsible to collect overpayments. The phone number is 1-800-826-0648. The website is www1.va.gov/debtman.