Table of Contents
The Department of Veterans Affairs (VA) runs programs to help Veterans manage or reduce debts owed to the VA or related to VA-backed benefits. Seeking VA debt relief can feel overwhelming at first. However, knowing your rights and understanding how to access real, life-changing support can be simple with the right resources. VA support is there to help you avoid drowning because of unpaid medical bills and loans. The VA may even be able to help you keep your home if it’s under threat of foreclosure.
In this article, we cover all of the VA-managed and VA-approved debt-relief programs, excluding third-party companies that operated outside of the VA’s oversights. Come learn what you need to know to achieve debt relief through approved VA pathways.
How Does VA Debt Relief Work?
VA debt help is available for any debts you might owe to the VA. This includes things like:
- Overpayments
- Copay bills (exemption from future copays)
- Outstanding VA-backed loans
Several avenues for managing VA debts are available. Depending on your circumstance, the VA may offer you full debt forgiveness, debt pause under hardship, repayment assistance, waivers, or compromise offers that settle your debt for less than the full amount owed. It’s important to remember that there isn’t a one-size-fits-all avenue for getting your debt forgiven through the VA. Taking time to learn about the different programs is important. If one avenue isn’t the right fit, don’t give up.
Veterans meeting different eligibility criteria based on factors like disability or financial hardship are able to get at least partial forgiveness or repayment restructuring approved to help them overcome the debt that is causing them stress and worry.
Is VA debt relief legit?
Veteran debt relief through the VA is 100% legitimate. The Department of Veterans Affairs personally administers and oversees these programs. This means you do not need to shop around for VA debt programs from third-party companies that charge fees. In fact, it’s important that you only engage through official VA channels found through VA.gov or the VA Debt Management program to avoid scams or fees. Debt relief programs advertised online for Veterans are not approved by the VA. While some of these programs may be legitimate in nature, they are intended for everyday consumers who do not have the option to use VA debt forgiveness plans to manage their debts. It cannot be stressed enough that Veterans do not need to apply for debt forgiveness using third-party debt consolidators or companies that claim to handle VA debt forgiveness.
How to get VA debt relief help?
There are several options. Veterans can contact the VA Debt Management Center (DMC) to discuss payment plans, hardship requests, or debt waivers. You can submit requests online through VA.gov or send written documentation explaining your financial situation.
VA Debt Relief Programs for Veterans
You can request help with VA debt for overpayments and copay bills online at VA.gov using Financial Status Report (VA Form 5655). This program is available to you if:
- You’re a Veteran (some benefits also apply to spouses)
- You need to request a repayment plan of more than five years or debt relief (a waiver or compromise offer)
- You need to request help for a VA disability compensation, pension, GI Bill benefit overpayment, or a VA health care copay debt
Next, learn about program nuances and eligibility. Depending on your circumstance, you may be granted complete forgiveness, a compromise offer, or a repayment plan. Once the application process begins, be thorough about verifying eligibility and properly documenting every step.
Understanding VA debt assistance programs eligibility
The VA offers debt relief and assistance programs for Veteran financial hardship. Eligible debts can be tied to education, compensation, or healthcare. Note that veterans must provide income verification and a hardship statement when applying. Depending on the program you’re applying under, the VA may request financial and work information that includes income verification (recent pay stubs), work history for the past two years, bank statements, and a list of assets that includes cash, checking, and savings.
VA medical debt relief: How does it work
Veterans who owe medical copays or fees can request debt forgiveness, repayment plans, or waivers through the VA Health Resource Center. If you are unable to pay your copay bills due to low income, you can request a waiver for all or part of your balance. If the request is granted by the VA, collection will be stopped and debt will be forgiven. If the VA makes a compromise offer, you may be asked to agree to a smaller one-time payment to settle your debt. A copay exemption may also be granted if your income has dropped significantly.
How does disability affect VA debt relief options?
Veterans with disability status may have their eligibility for VA debt relief expedited. Service-connected disabilities can entitle Veterans to faster approval for waivers or full forgiveness tied to medical or benefit overpayment debts. Be sure to have all of your medical records and testimonies prepared and organized ahead of time to make the process of applying for debt relief tied to a service-related disability as smooth and quick as possible.
Available VA Debt Forgiveness Options
The VA can forgive certain types of debts entirely under hardship conditions. Special determinations of eligibility are made based on whether a Veteran is applying for debt relief tied to medical, housing, education, or credit.
VA disability debt forgiveness: How does it work
Veterans with severe and permanent disabilities can qualify to have 100% of their debts discharged through the VA. Applications for forgiveness or full waiver are processed through the VA Debt Management Center. Extensive medical documentation is required.
VA home loan debt forgiveness: How does it work
Veterans with delinquent or pre-foreclosure mortgages can seek assistance through a VA loan modification, repayment plan, forbearance, or compromise sale. While the VA doesn’t directly offer mortgage relief, it will partner with loan officers to support Veterans. The VA also offers a lot of help and guidance along the way if you think you may be headed toward struggling to pay your mortgage long before foreclosure becomes an imminent possibility.
The VA will provide you with counseling for avoiding losing your home if you’re a Veteran or the surviving spouse of a Veteran. The VA will even provide this counseling to you if the loan you used to purchase your home isn’t a VA-backed loan. If you do have a VA-backed loan, you’re free to reach out to the VA at any time to discuss any concerns or questions you have about the loan. If you’re getting into trouble with paying back your VA-backed loan, the VA acts quickly to give you the best chance possible of keeping your home. If your VA-backed loan is 61 days past due, the VA automatically assigns a loan tech to spring into action to review the specifics of your loan with you.
VA student debt forgiveness: How does it work
While the VA doesn’t directly forgive student loans, it does work with the Department of Education to assist Veterans with total and permanent disabilities who are unable to repay federal student loans. It’s possible to have your federal student loan discharged automatically with proper documentation.
VA Debt Relief FAQs
Here’s a look at some frequently asked questions about getting debt forgiveness through the VA. Contact the VA directly for specific questions regarding your eligibility and the process for submitting the type of claim that applies to your case.
Yes, the VA offers a wide breadth of programs designed to help Veterans manage or eliminate dates owed to the VA. This includes overpayments, copays, and loans. There is no one-size-fits-all VA debt forgiveness program. First, you’ll need to determine how you qualify for VA debt relief help. The VA approves applicants based on factors like financial hardship and disability. Depending on your repayment ability and the specifics of any service-related disabilities, you may qualify for full forgiveness and complete waivers, compromise offers that ask you to settle a larger debt with a smaller lump sum, or a repayment plan that makes your monthly repayments more manageable for your current income.
Yes, the VA offers a wide breadth of programs designed to help Veterans manage or eliminate dates owed to the VA. This includes overpayments, copays, and loans. There is no one-size-fits-all VA debt forgiveness program. First, you’ll need to determine how you qualify for VA debt relief help. The VA approves applicants based on factors like financial hardship and disability. Depending on your repayment ability and the specifics of any service-related disabilities, you may qualify for full forgiveness and complete waivers, compromise offers that ask you to settle a larger debt with a smaller lump sum, or a repayment plan that makes your monthly repayments more manageable for your current income.
VA.gov is the most reliable source for information related to VA forgiveness. In addition, you can contact the VA Debt Management Center (1-800-827-0648) or reach out to an accredited Veteran Service Officer (VSO). The VA provides a simple online portal where you can locate a VSO locally to help you. The role of a VSO is to help you file a claim or request a decision review from the VA. You may see companies online advertise that they can help you get VA student debt forgiveness, VA home loan debt forgiveness, VA disability debt forgiveness, or other types of VA relief help. Veterans should avoid using third-party companies claiming to act on behalf of the VA. At best, these companies charge fees for services that you could do alone or with help from a VSO through the VA. At worst, they are using deceitful practices to try to charge you fees to move your debt to a repayment plan disguised as VA debt relief help.
Yes, disabled Veterans can see VA debt forgiveness for medical bills. Full or partial medical debt forgiveness is available through the VA. A Veteran’s chance for full VA debt forgiveness is especially high if their service-related disability limits their income or earning potential. While it will be necessary to submit proper medical paperwork and proof documenting your injuries or disability status, the process is generally very straightforward.
VA debt relief programs are designed to help Veterans get relief from unpaid bills owed to the VA. These programs can be essential for avoiding entering collections or losing your home to foreclosure. In addition, VA debt relief help gives Veterans a much-deserved helping hand when financial stress threatens their peace and well-being. Additionally, utilizing VA debt relief programs as soon as you realize that you’re struggling to back pay your VA debt can help to protect your access to your essential VA benefits.
The federal government invests billions into VA programs each year. That funding includes VA debt relief programs. Relief programs operated by the VA are prioritized because they provide structured and legitimate ways for Veterans to regain financial stability directly through federal support instead of being forced to “shop around” for debt relief or consolidation options that can be predatory.
VA debt relief is available: Access free and official help through the federal government
VA forgiveness information is something that you’re entitled to receive as a Veteran. That’s why there’s never any reason to seek out help from third-party companies offering debt relief or consolidation for your VA debts. Real, legitimate, and no-strings-attached VA debt relief is available for free to veterans facing hardships. Many VA debt forgiveness programs are simple enough to simply apply to on your own by using the online form provided or submitting a letter with the necessary paperwork to the VA. However, more complicated cases can sometimes require the support of a VSO.
Are you struggling to make payments on a debt you owe to the VA? Contact the VA Debt Management Center or use the VA website to search for local VSO for help with applications or appeals. VA debt relief programs are there to make sure our nation’s heroes don’t have to struggle in silence with financial hardships. Take the first step to preserving your hard-earned, well-deserved benefits. Learn about the VA debt forgiveness program that’s right for you today.