I just got my free annual credit report, and I saw one adverse listing, from “U.S. DEPT OF VETS AFFAIR.” This is because I receive the Montgomery GI bill. At the beginning of the spring semester I told them I was going to be a full time student, and indeed I was. But at the last possible instant, I decided to drop a class. They told me I owed them 1/4 of the money they had given me up to that point and transferred me to their debt department. So I found myself in this odd situation of being in debt to a government institution that has agreed to put aside a pool of money to help me pay for college. Even as they continue to give me money from this pool, I am in debt to them and slowly paying this off out of that pool. And now I just found that they are reporting this debt as outstanding to the credit bureaus, and this is the only negative mark I have.
I’m not just offended, I’m confused. Why are they doing this, and why is it legal for them to do so? How does this involve credit?
I am also having a problem with the GI bill folks at the VA.
I was overpaid by about $1800 and was told I had up to a year to pay it back. Last week I got my quarterly credit review, and they had me as behind in payments at 90 days! What the fuck, indeed!
I have a call in to one of the supervisors there…to see if there is any appeal or reversal of fortune for this. I paid it off with a credit card as soon as I found out, but was told in no uncertain terms by the “nice” “gentleman” that this would not remove the item from my credit report.