(a) Prevention of overpayments. In administering benefits payable under 38 U.S.C. chapter 30, VA will apply the provisions of §21.4008. See §21.7133.

(Authority: 38 U.S.C. 3034, 3690(b))

(b) Liability for overpayments.

(1) The amount of the overpayment of educational assistance paid to a veteran or servicemember constitutes a liability of that veteran or servicemember.

(2) The amount of the overpayment of educational assistance paid to a veteran or servicemember constitutes a liability of the educational institution if VA determines that the overpayment was made as the result of willful or negligent:

(i) False certification by the educational institution; or

(ii) Endorsement of a veteran's or servicemember's false certification of his or her actual attendance.

(Authority: 38 U.S.C. 3034, 3685)

(c) Recovery of overpayments. In determining whether an overpayment should be recovered from an educational institution, VA will apply the provisions of §21.4009 (except paragraph (a)(1)) to overpayments of educational assistance under 38 U.S.C. chapter 30.

(Authority: 38 U.S.C. 3034, 3685)

Cross Reference: Entitlement charges. See §21.7076(c).

[62 FR 55761, Oct. 28, 1997. Redesignated at 68 FR 35180, June 12, 2003.]