Title 38Veterans' BenefitsRelease 119-73

§7505 Repayment for failure to satisfy requirements of agreement

Title 38 › Part PART V— - BOARDS, ADMINISTRATIONS, AND SERVICES › Chapter CHAPTER 75— - VISUAL IMPAIRMENT AND ORIENTATION AND MOBILITY PROFESSIONALS EDUCATIONAL ASSISTANCE PROGRAM › § 7505

Last updated Apr 6, 2026|Official source

Summary

You must pay back the part of a scholarship you didn’t earn if you fail to follow the agreement you signed for the program, unless the Secretary allows an exception. The Secretary will write rules that explain how to figure the repayment amount and when exceptions can be given. The Secretary can waive or pause a repayment or service duty if your failure was beyond your control or if waiving it is in the United States’ interest. Any required repayment is a debt to the United States. If a bankruptcy order is entered less than five years after the agreement ended, that bankruptcy does not cancel the debt.

Full Legal Text

Title 38, §7505

Veterans' Benefits — Source: USLM XML via OLRC

(a)An individual who receives educational assistance under the scholarship program under this chapter shall repay to the Secretary an amount equal to the unearned portion of such assistance if the individual fails to satisfy the requirements of the agreement entered into under section 7504 of this title, except in circumstances authorized by the Secretary.
(b)The Secretary shall establish, by regulations, procedures for determining the amount of the repayment required under this section and the circumstances under which an exception to the required repayment may be granted.
(c)The Secretary shall prescribe regulations providing for the waiver or suspension of any obligation of an individual for service or payment under this chapter (or an agreement under this chapter) whenever—
(1)noncompliance by the individual is due to circumstances beyond the control of the individual; or
(2)the Secretary determines that the waiver or suspension of compliance is in the best interest of the United States.
(d)An obligation to repay the Secretary under this section is, for all purposes, a debt owed the United States. A discharge in bankruptcy under title 11 does not discharge a person from such debt if the discharge order is entered less than five years after the date of the termination of the agreement or contract on which the debt is based.

Reference

Citations & Metadata

Citation

38 U.S.C. § 7505

Title 38Veterans' Benefits

Last Updated

Apr 6, 2026

Release point: 119-73