The law requires that the VA collect all benefits paid to a veteran or a dependent for a course or courses for which the grade assigned was not used in computing the requirements for graduation ("W" or "X"), including a course from which the veteran/dependent withdraws, unless there are mitigating circumstances.
Mitigating circumstances are defined as unanticipated and unavoidable events or situations beyond a student's control that prevent him or her from completing a course with a creditable grade. In most cases, if mitigating circumstances are not shown, the student will be forced to repay the VA, or have the overpayment deducted from future benefits. The following are some general categories of mitigating circumstances (though the list is not complete):
The VA expects documentation to substantiate the student's claim for mitigating circumstances. The student must submit a description and the supporting evidentiary documents to the VA within one year of being notified of an overpayment.
Examples of unacceptable mitigating circumstances include withdrawal to avoid a failing grade, dislike of instructors, and too many courses attempted. If the VA does not accept the claim, the student may appeal the decision in writing (see Appendix C).
The Six-Credit Exclusion: The VA waives the mitigating circumstances provision the FIRST time a student using educational benefits withdraws from courses. This applies to a maximum of six credit hours. In this case, the student is not required to show proof of mitigating circumstances. The six-credit exclusion only applies to the first instance of withdrawal. It does not apply across-the-board for the entire semester of a student's first withdrawal. In order for the full six hours to be accepted, the last date of attendance must be the same for all six hours. For Chapter 31s, contact your case manager.