VETERANS EDUCATION DEBT MANAGEMENT BENEFITS ADMINISTRATION Debt Resolution

VETERANS EDUCATION DEBT MANAGEMENT BENEFITS ADMINISTRATION Debt Resolution – Collections VETERANS BENEFITS ADMINISTRATION APRIL 17, 2013

OBJECTIVES • Review the common reasons for VA Education debts • Identify agencies supporting the VA Debt Management process • Outline VA debt resolution process • Detail the Debt Management Center function • Detail the Treasury Offset Program • Detail the Return Check Team function • Identify debt resolution best practices VETERANS BENEFITS ADMINISTRATION 1

Why does my school have a VA debt? • Student never attended classes • Student completely withdraws before or on the first day of the term • School received payment for the wrong student • • Duplicate payments • VA payment above the • certification amount VETERANS BENEFITS ADMINISTRATION Student died during the term or before the beginning of term Reductions/amendments to tuition & fee charges 2

Debt Management Team VA Regional Office • • • Debt Creation Debt Amendments Debt Notification National Return Check Team • • • Debt Management Center Research unresolved DMC matters Checks received without identifying info Research duplicate debt payments made to DMC VETERANS BENEFITS ADMINISTRATION • • Debt Collection Service Debt Collection Notification Department of Treasury • Treasury Offset Program 3

VA Regional Processing Office Western Regional Processing Office (Muskogee, OK) VETERANS BENEFITS ADMINISTRATION 4

Debt Resolution Process • VA Regional Office creates debt and notifies school. • Debt Management Center initiates collection of debt. (30 days) • Debt Management Center sends second notice to school to attempt collection of debt. (30 days) • Debt Management Center makes debt collectable after 60 days • National Return Check Team - research unidentified checks to DMC • Department of Treasury - collection of delinquent debts VETERANS BENEFITS ADMINISTRATION 5

Debt Management Center • Send two debt collection notices to schools. • Collection notices include a payment coupon. • Payment coupon should be returned with each payment. • Payment must include the student’s full name and SSN. • Payments made with incomplete information could result in incorrect application of funds • Debt dispute process can be initiated with DMC • Unassociated payments will be forwarded to the National Return Check Team for research/resolution. VETERANS BENEFITS ADMINISTRATION 6

Department of Treasury (DOT) • • DMC refers all unsuccessful debt collection accounts to The DOT’s Financial Management Service Offset Program The associated taxpayer identification number (TIN) is intercepted Debts can be collected from both Federal and state sources The TIN debt is collected, any remaining funds is disbursed to the payee $17. 00 fee will be charged to the associated TIN Debts will be collected from state Branch institutions using a corporate group TIN will be affected collectively Blocked Fedwire transactions should be requested via Automated Clearing House (ACH) VETERANS BENEFITS ADMINISTRATION 7

National Return Check Team • DMC refers all received checks with unassociated information • Review of check information sent from the school • Make contact with schools to determine the associated student • Amendments and corrections • Initiate debt waivers • Initiate school payments • Any unsuccessful school contact will result in returned funds • Switching school debts to student debts VETERANS BENEFITS ADMINISTRATION 8

Best Practices • Submit changes to enrollment within 30 days of change • Be proactive with debt notifications from DMC • Ensure student identification on all documentation submitted to DMC • Send proof of duplicate payments to DMC • Respond to Nation Return Check Team calls VETERANS BENEFITS ADMINISTRATION 9

Contacts VA Regional Office • • 1 -888 -GI BILL-1 1 -855 -225 -1159 (SCO Hotline) http: //www. gibill. va. gov 125 South Main Street, Muskogee, OR 74401 National Return Check Team • Debt Management Center 1 - 918 -781 -5600 VETERANS BENEFITS ADMINISTRATION • • 1 -800 -827 -0648 1 -612 -970 -5782 (fax) DMC (389), PO Box 11930, St. Paul, MN 55111 -0930 www. pay. va. gov Department of Treasury • • 1 -800 -304 -3107 (TOP Call Center) 1 -202 -874 -6937 (Treasury Offset Division) 10

Debt Management Recap • • Common reasons for VA Education debts Agencies supporting the VA Debt Management process VA debt resolution process Debt Management Center function Treasury Offset Program Return Check Team function Debt resolution best practices VETERANS BENEFITS ADMINISTRATION 11

Discussion VETERANS BENEFITS ADMINISTRATION 12