Will I Be Able to Make Monthly Payments?
Q: When will I receive notification to pay back the Chapter 35 payments made to my daughter, since she dropped out mid-way through the semester? Will I be able to make monthly payments on this?
A: I don’t know that you will receive notification as the contact information for her Chapter 35 benefits is most likely in her name. Be sure she keeps you informed of any correspondence she has with the VA.
If you are required to pay back the Chapter 35 money she received, then the notification will come from the VA Debt Management Center in St. Paul, MN. Yes you will be able to set-up a payment plan and pay back the money in installments according to an approved plan you will have to work out with the VA.
Depending on why your daughter had to drop out, you may not have to pay back anything or at least a lesser amount. The VA usually allows a one-time drop up to six credits without the user incurring a financial obligation to pay it back. If the reason your daughter had to drop was not within her control (mitigating circumstances) then she most likely won’t have to pay anything back. If her reason was non-mitigating, then she will incur some type of financial responsibility. Mitigating means her reason for dropping was something out of her control that prevented her from attending class to the point she had to drop or fail.