USMA Separated & Recoupment

Discussion in 'Military Academy - USMA' started by mrod305, Jul 16, 2011.

  1. mrod305

    mrod305 New Member

    Joined:
    Jul 16, 2011
    Messages:
    2
    Likes Received:
    0
    Hi,

    I was separated from USMA in 2005. Part of this meant paying recoupment (174,000 for four years).

    Well, the Army never got to me and never sent me a bill. Until now, in 2011, six years later!

    So, needless to say, I'm freaking out because I've gone about and lived my life and have a family and all now. I just want to know what to expect here, how one repays this stuff, what your experience has been with DFAS.

    Is there anyone in this boat, or similar boat? Anyone who's been dealing with recoupment payments?


    I could really, really, use your advice. I just want to settle anxiety as to what this is all going to entail.

    - ex cadet, 2005
     
  2. rkrosnar

    rkrosnar Member

    Joined:
    Jan 27, 2010
    Messages:
    676
    Likes Received:
    16
    USMA Seperated & Recoupment

    mrod305

    If I understand what your saying here you seperated after you began your junior (2C) year. It is my understanding that when you are going to begin your 3rd year. You must sign another set of documents, which states if you leave for any reason. You must pay the SA (ie; government back.) I have had some folks tell me too, that should this happen. They might give you an option in go into the enlisted ranks. I strongly suggest that you review any documentation, that you signed from when you started all this from applying to the academy to seperation. As far as them catching up to you now. Well, they have now. Let us know, how it turns out. Two words we all need to remember accountability and responsibility.

    RGK
     
  3. equestriangrl93

    equestriangrl93 Member

    Joined:
    Feb 23, 2011
    Messages:
    77
    Likes Received:
    0
    Why were you separated from West Point?
     
  4. SeaMars

    SeaMars Member

    Joined:
    Jan 27, 2010
    Messages:
    85
    Likes Received:
    0
    The easiest way to scare off a new poster -- who may actually have something valuable to add to discussion -- is to bombard with reprimand and intrusive questioning that doesn't bear on the issue he/she brought to the table.

    Cadets are separated for many reasons -- academic, permanent medical conditions (e.g., discovery of flat feet), failure of physical fitness testing -- in addition to the disciplinary causes that jump first to many people's minds. With some separations, the cadet must perform service as an enlisted; with others, he or she must reimburse the Army, as here; still others can walk away without further obligation.

    This former cadet isn't asking to avoid responsibility, but for anyone's experience in managing a huge debt payable at once to a faceless government agency-- a frightening proposition for a twenty-something with other responsibilities to face. If you got a tax bill that size, you would try to find out whether there were possibilities for partial forgiveness, payment over time, or other arrangements that made something other than bankruptcy a choice. This forum tends to have two or three "lurkers' for every one who posts. The outcome of his situation may well affect the decisions of other young men and women come cow year. If you can help with advice and experience, please add it. Let's not scare him off.
     
  5. kp2001

    kp2001 USMMA Alumnus

    Joined:
    Jun 9, 2006
    Messages:
    2,153
    Likes Received:
    113
    In my experience with having to pay back the gov't (I've been overpaid more times that I care to remember) they have allowed me to set up various payment plans. The most I've ever been offered was a three year plan for when they overpaid me nearly $15,000 over a year.

    I have no direct experience with recoupment for your type of situation, but my guess is they will either offer you a plan of some type or you may be forced to take out a personal loan if they want it all in one lump sum.
     
  6. Luigi59

    Luigi59 Banned

    Joined:
    Apr 1, 2007
    Messages:
    4,628
    Likes Received:
    5
    Monies owed because cadet did not fulfill a later military service requirement are not dischargable under Chapter 7 or Chapter 13 bankruptcy.
     
  7. scoutpilot

    scoutpilot Member

    Joined:
    Apr 29, 2010
    Messages:
    4,276
    Likes Received:
    609
    Having never dealt with this myself, I can't offer much in the way of specifics. Perhaps you might contact USMA? I'm sure someone there in the personnel offices is at least somewhat familiar with this. That might put a face/name to the situation so you aren't dealing with some bureaucratic edifice in Indianapolis or Rome or whichever DFAS office is handling it.
     
  8. mrod305

    mrod305 New Member

    Joined:
    Jul 16, 2011
    Messages:
    2
    Likes Received:
    0

    Thanks, and you're right. The reasons of my separation are not relevant to my question. The point is I was separated and the government determined I owe recoupment. I was not given an opportunity to serve in the Army as an enlisted soldier due to medical reasons (independent of my separation; but lets ignore that messy complication. I'm not trying to "get over" and not recoup; but I am trying to find out how one goes about this in a just manner.

    Fact is, I owe $174,000 for my educational expenses (which exclude military costs, barracks, and food). DFAS gives me 10 years to pay, and supposedly at that rate I would have to pay about $1,750 per month, for 10 years. I obviously can't afford this monthly amount as a young man! It amounts to about 50% of my after-tax monthly income!

    Well, DFAS does allow for me to claim "financial hardship" and reduce my payments. I'll try this, and likely will have a reduction. But obviously this kicks the can down the road though. If I continue to kick the can, because I obviously can't afford the monthly rate, what happens after 10 years? What happens if there's a balance after that time? What have other former cadets experienced with this?

    And please, don't speculate. I only need answers based on actual experiences.

    Thanks!

    -ex-cadet '05
     
  9. Dixieland

    Dixieland Member

    Joined:
    Mar 10, 2010
    Messages:
    1,217
    Likes Received:
    126
    I don't have anything helpful that I can contribute, mrod305, but I just wish you the best as you try to get this sorted out.
     
  10. BlindROTC

    BlindROTC Member

    Joined:
    Apr 25, 2011
    Messages:
    61
    Likes Received:
    1
    I think you need to get some good legal advice, but it has to be an attorney with military expertise. We've all seen the commercials from attorneys offering to negotiate tax problems with the IRS. Maybe something can be made of the fact that your separate medical condition precluded enlisted service. Also find out if they can garnish your wages, or withhold other federal benefits like college financial aid (probably so), social security, and medicare.

    It sounds like they charge you a low interest rate, and if so I would stretch the payments out as long as possible. $1750/month would be a hardship for almost anyone.
     

Share This Page