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Vtlclallo AUIlllIUSUablVll set up machinery for recovering GI Bill subsistence allowance overpayments from schools which willfully or negligently fail to report veteran-students’ excessive absences, drop-outs or interruptions of training.
The machinery, authorized under Public Law 610, applies only in those cases where willful or negligent failure to inform V-A entered the picture at any time after July 13, I960, effective date of the law.
In all other cases, VA said, veterans still can be held liable for subsistence overpayments which they receive for periods when they should have been cut off GI training rolls.
The fact of a school’s willful or negligent failure to report has to be proved at a hearing before a VA Committee on Waivers before VA can take action to recover the overpayment from the school, VA pointed out.
Once that fact has been established, VA can recover the money by (1) offset from amounts otherwise due the school, or (2) direct collection from the school. ‘
VA cited an example of a case in which it might bring its newlycreated machinery into play. It would do so if a school, with a record of repeated failures to furnish information^ or otherwise comply with VA regu^Hbns, again allegedly failed to report a veteran’s excessive absences, discontinuances ~'ot Interruptions. But - ‘ ftrabj vf sciwbf wdulif have a chance to be heard before the Committee oh WaiverA
On the other hand, VA would not necessarily take action if the failure to report appeared to be an isolated incident, and the school otherwise had a smoothlyrunning reporting system.
|Jnder the law, if a veteran refunds to VA a subsistence overpayment after VA had recovered that amount from a school, VA would be required to return the amount of overpayment to the eehoe^^.tf j :> •*. „ ■>»
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