Backstory: DH is enrolled in an online degree program for his MBA. The school is eligible to disburse VA education benefits (GI Bill). Due to the way the school's "semesters" work, according to the VA, DH is enrolled 1/2 time.

Back in November, when he re-enrolled for his 2nd semester, DH received a letter from the VA stating that they had overpaid him over the previous year, and that as a result he now owed them over $6000. Based on the fact that the school certified him as 1/2 time, DH certified himself as 1/2 time, and the VA still paid him for full time, as well as the fact that repayment of the debt would present a significant financial burden (DH only works part time, so his GI Bill payments account for nearly 1/3 of our monthly income), he filed a request for a waiver/forbearance of the debt.

We have not heard anything about his waiver request (sent over 8 weeks ago). In the meantime, they have been taking his entitlement every month to pay the debt.

About 2 weeks ago, he receives 2 letters from the VA on the same day. One states that his debt has been reduced by $1300 (the 2 months of entitlement they've taken), thanks for making payments. The other states that he owes the original amount, and they will start collection procedures if he does not arrange payments within 30 days.

He calls every day, only to be on hold for sometimes several hours. We have no idea what's going on. If we still owe the original amount, where has the money they've been taking gone? Since they have the ability to seize all federal payments, will they begin to take his reserve pay, as well as our tax refund to repay the debt?

Does anyone have any experience with owing the VA a debt? Or requesting a waiver of such a debt? If they were to grant the waiver, would they repay what they've already taken from us? Any suggestions on what we should do? The only thing I've been able to come up with is to continue to call and hope that he's able to get through the hold queue, and write another waiver request. Any suggestions would be greatly appreciated.

I was in a similar situation. Mine was waived because it was 100% their error. It took me a about 90 days to get it all cleared up...then i check my credit, i have a negative account on my report from VA which lists zero dollars owed to them and zero paid. Im in the process of getting that fixed now. Headaches.