The GI Bill provides incredible education benefits to help veterans and their families pursue academic and career goals. However recipients need to understand the repayment requirements if they withdraw from classes or school after receiving Post-9/11 GI Bill benefits. This article outlines the key policies around paying back GI Bill funds in withdrawal situations for housing allowances and tuition/fees.
Post-9/11 GI Bill Benefits Impacted by Withdrawals
The Post-9/11 GI Bill (Chapter 33) provides financial assistance to cover various education-related costs. Two main categories of benefits may need to be repaid if a student withdraws:
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Monthly Housing Allowance (MHA) – Money paid directly to the recipient to help cover rent, mortgage, and living expenses.
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Tuition/Fees – Funds sent to the school to cover the cost of tuition, university fees, and Yellow Ribbon program contributions
Other Post-9/11 benefits like books/supplies stipends are not impacted by withdrawals.
Repaying the Monthly Housing Allowance
Recipients are paid a monthly housing allowance as part of the Post-9/11 GI Bill. This money is sent directly to the student.
If you withdraw from all courses after receiving MHA payments, you will need to repay a prorated portion back to the VA.
When MHA Repayments Are Required
You must repay MHA funds if:
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You withdraw on or before the first day of the term
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You reduce your course load to less than full time and receive a lower MHA rate
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You withdraw at any point during the term
The portion you must repay will depend on the timing of your withdrawal or course load reduction during the term.
Calculating the MHA Repayment Amount
The VA prorates MHA repayments based on the number of days you attended school during the term.
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If you withdraw at the very start of term, you’ll owe back the entire MHA amount.
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If you withdraw with only a few weeks left, the repayment will be smaller.
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The later you withdraw, the lower the repayment.
You can use the VA’s MHA repayment calculator to determine the specific amount owed based on your situation.
Steps to Repay the VA for MHA Funds
If you owe the VA for MHA repayments, here is the process:
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The VA will send you a debt letter stating the amount you need to return.
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You can pay this back to the VA via check, money order, debit/credit card, or bank transfer.
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The VA provides options if you can’t immediately repay in full. You may request a payment plan to pay back incrementally over time.
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If your repayment request is denied, you can file an appeal within one year.
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Failure to repay the MHA funds could result in collection fees or impacts to your credit rating.
Recouping Tuition/Fees from Schools
Tuition, university fees, and Yellow Ribbon contributions are paid by the VA directly to the school under the Post-9/11 GI Bill. If you withdraw, the school may need to refund a portion back to the VA.
Situations When Tuition/Fees Are Recouped
Schools must return GI Bill funds to the VA if:
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The student officially withdraws during the term.
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The student reduces enrollment status to below full time.
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The student stops attending classes without officially withdrawing.
The Refund Calculation Process
To determine the refund amount, schools follow their established institutional refund policy:
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Most schools have a standardized withdrawal refund schedule based on when a student withdraws during the semester. For example:
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Withdraw in first 2 weeks = 100% refund
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Withdraw in weeks 3-4 = 75% refund
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Withdraw in weeks 5-6 = 50% refund
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Later withdraws may get 0% refund
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The percentage dictates the portion of tuition, fees, and Yellow Ribbon aid paid by the VA that the school must refund.
Steps for Schools to Process Tuition/Fee Refunds
Schools must return recouped GI Bill funds to the VA via these steps:
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Calculate the refund amount owed based on their institutional refund policy.
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Report the student’s change in enrollment status to the VA.
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Process and submit refunds for tuition, fees, and Yellow Ribbon aid to the VA.
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Communicate with affected students on impacts to their enrollment and financial aid.
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Update school records to reflect adjusted tuition balances and revised GI Bill benefits.
Key Takeaways for Students
Students using Post-9/11 GI Bill benefits should remember:
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Review school withdrawal policies before classes start. Understand refund schedules and deadlines.
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Report any withdrawals or course load reductions to your VA school certifying official ASAP.
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Expect to repay prorated MHA funds if you withdraw during a term.
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Check with the financial aid office on impacts to tuition payments or Yellow Ribbon aid.
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Keep the VA informed if your enrollment status changes to avoid running into debt.
Careful planning and quick communication about any mid-semester withdrawals can help students navigate GI Bill repayments smoothly and responsibly.
Can I get a refund for the MGIB $600 Buy-Up program?
No. The $600 Buy-Up isn’t refundable.
Can I get a Montgomery GI Bill refund?
You may be able to get a Montgomery GI Bill refund if you meet the requirements listed here.
One of these must be true:
- You entered active duty after June 30, 1985, or
- You served a combination of at least 2 years of active-duty service and 4 years of Selected Reserve service after June 30, 1985
And all of these must be true:
- You paid the $1,200 MGIB buy-in when you joined the military, and
- You chose to use your Post-9/11 GI Bill benefits instead of your MGIB benefits, and
- You had unused MGIB benefits when you started using Post-9/11 GI Bill benefits instead, and
- You’ve used all of your Post-9/11 GI Bill benefits, and
- You were receiving a Post-9/11 GI Bill monthly housing allowance on the day your entitlement ended
Retro-Active Pay for GI Bill | theSITREP
FAQ
Do you have to repay the GI Bill?
Can I get my GI Bill money back?
Do I have to pay back GI Bill if I drop a class?
Do you have to pay back the VA if you fail a class in chapter 35?
Do I need to pay back my GI Bill benefits?
If you’re using Montgomery GI Bill Active Duty (MGIB-AD), Montgomery GI Bill Selected Reserve (MGIB-SR), or Survivors’ and Dependents’ Education Assistance (DEA), you may need to pay us back the benefits we’ve paid directly to you. And your school will likely ask you to pay them back for any debt we charged to them.
Do I have to pay back GI Bill if I fail a class?
No. If you finished the class, you won’t have to pay back the GI Bill benefits you used for that class. This is because we count a failing grade (or “punitive grade”) as progress toward graduation requirements even though you don’t get any credit for it. Note: If you fail a class, you can take the same class again using GI Bill benefits.
When will I get my GI bill payment?
The payment will include the first partial month and the first full month of your enrollment. Example: If your enrollment starts on August 25, the advance payment will cover August 25 through September 30. Since GI Bill benefits are paid at the end of the month, you’ll get your next payment for October 1 to 31 in early November.
Do I have to pay GI Bill if I take a class?
Since this grade counts towards your graduation progress you are not required to repay any GI Bill money you received for that class. And, according to the VA, you may take the class again in an attempt to receive credit towards graduation or raise your grade for it and you may receive GI Bill payment for the retaking of the class.
Can I get a GI Bill advance payment?
This depends on which GI Bill program you’re using. If you’re using the Post-9/11 GI Bill, you can’t get an advance payment. If you’re using a GI Bill program other than the Post-9/11 GI Bill, you may be able to get an advance payment. You’ll need to meet all of the requirements listed below. You must:
Will VA pay GI Bill if I get no credit?
So, since you get no credit, the VA will come after you to get any GI Bill payment you received for that class back from you. Since non-punitive grades don’t count towards your degree you may be required to repay any GI Bill money you received for such classes. What if You Just Stop Going to Class?