VA Debt


Why do I have a Debt?

The VBA is responsible for awarding benefits, issuing benefit payments, and establishing debts.  Once established, debts are sent to the VA Debt Management Center (DMC) for collection.

Debt types collected by the DMC include:

·       Compensation 

·       Pension

·       Education

·       Home Loan

·       Vocational Rehabilitation

Common reasons for debts:

·       Change in income or net worth

·       Change in active duty status

·       Change in dependency

·       Incarceration or fugitive felon status

·       Withdrawal from class

·       Class non-attendance

·       Duplicate or erroneous payment

How am I notified?

In most cases, VBA will notify you that a debt has been established via U.S. mail.  This notification will explain why the debt was established.

Once the debt is established by VBA, the VA Debt Management Center will send letters via U.S. mail updating you regarding the collection status of the debt, changes in the balance, actions the DMC could take regarding the debt, and your due process rights afforded by law.  

What are my options?

Options below are available on the DMC’s website:

Pay in Full

The DMC accepts checks, money orders, and Western Union Quick Collect.  Credit card, debit card, and EFT payments can be made at or through the call center by phone.

Benefit Offset

If you are receiving VA education compensation, or pension benefits, your benefits could be offset to resolve the debt.  Contact the DMC to request a reduced offset amount and set up a repayment plan.

Payment Plan

If you are not receiving VA benefits and cannot pay the debt in full, the DMC will work with you to set up a repayment plan.  

Dispute the Debt’s Validity or Amount

If you believe you do not owe the debt, or you feel the amount is incorrect, you can dispute the existence or amount of the debt.

Request a Waiver

Under certain circumstances, a request to waive part or all of the debt can be granted.  If a waiver request is granted, it means that you will not be required to pay the amount waived.

Offer a Compromise

You may propose a lesser amount as full settlement of a debt, this is known as a compromise offer.

What if I take no action?

If you are receiving VA benefits:

·       Your VA benefits will be offset in full until the debt is repaid.

·       If you are not receiving benefits and the DMC does not receive regular payments, the DMC is required to:

·       Report the debt to credit reporting agencies.

·       Refer the debt to the Department of the Treasury for collection.  Treasury may offset federal and state payments, garnish non-federal wages, and/or refer the debt to private collection agencies.

·       Report the debt to the Credit Alert Interactive Verification Reporting System (CAIVRS).  CAIVRS is a database which allows Federal agencies and approved private lenders to pre-screen applicants for loans issued or guaranteed by the Federal Government.

Whom do I contact?


Call Center

Toll-free 800-827-0648

Hours 6:30 am to 6:00 pm CST


Mailing Address

Department of Veterans Affairs

Debt Management Center – 389

P.O. Box 11930

St. Paul, MN 55111-0930



Pay Online




Valencia College physical campus locations are currently closed to students, staff, and faculty. The VA office staff is working remotely during this time and will reply to your email as soon as possible.

Thank you for your patience.

Instructions to Request a Lower Withholding from Current VA Benefits

To request a lower Withholding: Complete and sign the Financial Status Report - VA Form 5655. Specify "Lower Withholding" in Block "3" of Financial Status Report and enter amount of the monthly withholding amount you are requesting in block "24B".

If you are requesting a Partial Refund of a benefit that was already taken and applied to the debt, please state "Lower Withholding/Refund" in Block "3" of the Financial Status Report.

Instructions to Request a Waiver

To request a Waiver: Complete and sign the Financial Status Report - VA Form 5655. Specify "Waiver" in Block "3" of Financial Status Report. In addition to completing the Financial Status Report, please write a letter on a separate sheet of paper stating that you are "Requesting a Waiver".

NOTE: The word "waiver" must be included in your letter. Explain why you are requesting the waiver and why you don’t feel you should be held responsible for this debt. You may include supporting documentation you feel will help your case.

  • Remember to put your file number and name on the top of each page of documentation.
  • Please Note: You have 180 days from the date of the first notification letter to request a waiver.

Instructions to Establish a Monthly Payment Arrangement Where Payments Would Be Submitted to VA to Credit the Debt

To request a lower Payment Plan: Complete and sign the Financial Status Report -VA Form 5655. Specify "Payment Plan" in Block "3" of Financial Status Report and enter the monthly payment amount you are requesting in block "24B".

You will receive notification from Debt Management Center either agreeing to the requested amount or advising you of the amount we would be able to accept.

Instructions to Submit the Financial Status Report — VA Form 5655, or Any Additional Information to Debt Management Center

You can submit the Financial Status Report and any additional documents the following ways:

  • Via Fax: 612-970-5798
  • Via Mail:
    VA Debt Management
    P. O. Box 11930
    St. Paul, MN 55111-0930
  • Via Email:
    Note: This and email box in the correspondence unit. They will process your request in the order it is received. If you send via Email, please indicate the purpose of the Email on the "Subject" line i.e.: REPAY, WAIVER, PAYMENT PLAN or REPAY and WAIVER.

Make sure to keep a copy of all documents you send to the Debt Management Center.