Title 38, Veterans' BenefitsRelease 119-110

§7505 Repayment for Failure to Satisfy Requirements of Agreement

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

Last updated Sep 22, 2026|Official source

Summary

If you get scholarship help under this program and you do not meet the terms of the agreement you signed, you must pay back the part of the aid you did not earn, unless the Secretary allows an exception. The Secretary will make rules that say how much you must repay and when exceptions can be granted. The Secretary can also waive or pause your duty to serve or pay if you could not comply for reasons beyond your control or if the Secretary decides a waiver is in the best interest of the United States. Any repayment you owe is a debt to the United States. If you file for bankruptcy, that debt is not wiped out if the bankruptcy order is entered less than five years after your agreement ended.

Full Legal Text

Title 38, §7505

Veterans' Benefits, Source: USLM XML via OLRC

(a)In General.—

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)Amount of Repayment.—

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)Waiver or Suspension of Compliance.—

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)Obligation as Debt to United States.—

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 38, Veterans' Benefits

Last Updated

Sep 22, 2026

Release point: 119-110