How To Refund A Veteran Discount From Muskogee

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1 Department of Veterans Affairs 0 Reporting and Processing Tuition and Fees This presents a broad overview of Chapter 33 and may not be relevant in all situations. Please contact the Education Service office in San Diego for any needed clarification

2 The advent of the Post-911 GBILL has added layers of complexity to VA education benefits. Depending on your schools organizational structure, other departments may need to understand VA regulations pertaining to refunding and returning VA funds and how financial aid can impact the veteran s benefit. It is imperative that your institution understand the rules for returning tuition and fees to the VA and refunding tuition and fees to the student. In addition, schools must understand how to properly report tuition and fees when financial aid is a factor. 2

3 Important Points Covered Reporting tuition and fees with applied discounts Rules for returning funds to the VA Handling erroneous payments from Muskogee Rules for refunding the student Returning checks/eft funds to the VA 3

4 Reporting Tuition and Fees With Applied Discounts Public Law changes the amount of tuition and fee charges which should be reported to VA. For periods of enrollment beginning on or after August 1,201 1, you should report the following charges: The actual net cost for in-state tuition and fees assessed by the institution for the program of education after the application of any waiver of, or reduction in, tuition and fees; and any scholarship, or other Federal, State, institutional, or employer-based aid or assistance (excluding loans and title IV funds) that is provided directly to the institution and specifically designated for the sole purpose of defraying tuition and fees. VER062509ELR 4

5 Example: Student gross in-state charges = $4,000 Veteran Discount -400 Tuition Scholarship -$2,000 Title IV (ex. Pell Grant) (2,500) General Scholarship (l,000) Net in-state Charges = $1,600 Report the tuition and fees listed on the students invoice. If the invoice shows a discount from any source (other then Title IV monies), then you MUST report the discounted monies. If a discount is applied after certification, an Amendment must be submitted, reporting the reduced tuition/fees with the applied discount. The school will be responsible for any resulting debt 5

6 Note: As the certifying official, you must be aware of discounts that can affect reported tuition. The complexities involved with accurately reporting tuition require good communication with your institutions financial aid department. In order to accurately report tuition and fees, certifying officials must have a complete picture of financial aid a veteran is receiving for the certified period of enrollment. 6

7 When Is The School Responsible For Returning Funds To The VA? The student did not attend classes as certified for the enrollment period (the student dropped to 0 units on or before the first day of the certified enrollment period) The school submitted an amended 1999 showing a reduction in tuition and fee charges or a reduction in Yellow Ribbon amount, or both The student is not enrolled in your school 7

8 VA submitted duplicate payments for this enrollment period The student died during the term and was due a refund VA paid more than the amount reported on the certified enrollment (the next slide will clarify this situation) 8

9 If you believe you have received an overpayment from Muskogee 1) Create a Right Now Web or call the SCO number ) Muskogee will process your inquiry and create a debt if necessary. 3) You will receive a debt letter with the exact amount to return to the VA. Note: Generally, it is best not to return monies to Muskogee if there is no existing debt. Returning monies to Muskogee without a debt letter will only complicate matters. 9

10 If you believe you have received an underpayment from Muskogee, the same rule applies. 1) Create a Right Now Web or call the SCO number ) Muskogee will process your inquiry and send out a payment if necessary. 10

11 When Is The School Responsible For Refunding Funds To The Student? If a student attends any portion of the certified enrollment period past the first day of the term, schools should follow their established student refund policy if the student reduces units. The student will be responsible for any resulting debt 11

12 Example: 1) Student is in pursuit from 08/23/10-12/22/10 for 12 units and reduces to 9 units effective 08/22/10. Who is responsible for any resulting overpayment? The student 2) Student is in pursuit from 02/01/11-05/25/11 for 12 units and reduces to 0 units effective 02/02/11. Who is responsible for any resulting overpayment? The student 12

13 Returning Funds to VA Schools should wait to refund payments to VA until a collection notice from the VA Debt Management Center (DMC) is received. In those instances where schools are responsible for making a remittance to VA for excess Tuition, Fees, or Yellow Ribbon payments, schools may make a refund to VA in one of five options. 1. Schools may send a check, payable to the US Department of Veterans Affairs, to the VA Debt Management Center. It is essential that schools include the student s name and VA file number when making a payment to VA. If you have received a collection notice from DMC, VA requests the tear off sheet from the collection notice be included with the payment. The address to the VA Debt Management Center is: 13

14 VA Debt Management Center Bishop Henry Whipple Federal Building P.O. Box St Paul, MN Schools may make a payment using a major credit card, debit card, or by electronic funds transfer from a checking or savings account. You may do this on-line by visiting the DMC website or by calling the DMC toll free number at Schools paying on-line or by phone will be required to provide details from the DMC collection notice. 3. Schools may also send a payment to VA from any Western Union Agent location, or by visiting The Western Union Agent or the website will require a host city code, which is VADMC. You will need the code to complete the transaction. 14

15 4. Should the school receive payment in the form of a paper check, the school may return the uncashed Treasury check to: U.S. Department of the Treasury Financial Management Service P.O. Box Philadelphia, PA Should the school receive payment via Electronic Funds Transfer, schools may refund VA electronically via Automated Clearing House (ACH). To do so, schools shall request their banks return the full payment amount using an R31 ACH return code. Each bank has its own procedures and time constraints for returning direct deposit payments. Please speak with your bank s representative to obtain specific instructions on this process. 15

16 Refunds to VA not submitted in one of the approved methodologies may result in delays in debt processing. These delays may result in erroneous collection notices to students and/or schools and possibly referral of the debt to private collection agencies and the credit reporting bureaus. 16

17 Rules To Follow When Returning Checks Do not send funds to VA if you have no debt letter Include the payment stub from the DMC debt letter when returning funds. Do not send a copy of the payment stub. Send the original. You must include the students full name and social on the check, payable to the dept of Veterans Affairs 17

18 Common Problems With Reporting and Refunding/Returning Funds The finance office is sending funds back to the VA without understanding VA procedures The certifying official is not aware of financial aid a student is receiving and/or does not understand how financial aid can impact tuition and fees reporting. Schools returning funds without an explanation 18

19 School returning funds to the VA when no outstanding debt exist Schools returning funds that should have been refunded to the veteran 19

20 Questions GI Bill Website ( GI Bill Hotline: GIBILL-1 20