February 25, 2021

The VA Extends Suspension of Debt Collection Through September 2021

In response to the global pandemic, the Department of Veterans Affairs suspended debt collections on benefits overpayments and medical co-pays in April of 2020. That suspension expired at the beginning of January 2021 – causing lawmakers and veterans advocacy groups to pressure VA officials to show continued leniency. On February 18, the VA announced it would extend this suspension through September of 2021. Denis McDonough, the recently confirmed VA Secretary explained his top priority is providing real relief to the 2 million veterans who currently owe debts to the VA to ensure the financial stress caused by the pandemic isn’t compounded by VA debt collectors. In tune with this goal, VA officials also extended a moratorium on evictions and foreclosures for all properties backed by VA-guaranteed loans until the end of June. In addition to these delays, veterans may also seek extended repayment plans, debt waivers, and hardship suspensions.