A compromise was announced Tuesday to forgive millions of dollars in debt owed by California National Guard soldiers. Last month it was reported veterans were ordered to repay bonuses they had received at the time.
The Los Angeles Timesreported the agreement was a part of a defense bill that will be voted on by the House and Senate Friday and next week, respectively. Lawmakers said most of the 9,700 soldiers ordered to repay bonuses between 2004 to 2015 would have their debts forgiven. Pentagon officials said not all soldiers would have their debts forgiven because some actually committed fraud. The bill says “recoupment is unwarranted” except should evidence be found the soldier knew or should have known about being “ineligible for the bonus pay.”
Rep. Adam B. Schiff said the bill “Largely meets the needs of the soldiers who accepted their bonuses in good faith, as the vast majority of them did. It should give these soldiers peace of mind during the holidays that the Pentagon won’t claw them back.” The compromise would also force the Defense Department to refund payments soldiers already made to repay the debt, so long as they weren’t fraudulent. The Pentagon would also be responsible for communicating with credit agencies to let them know about the changes in a soldier’s debt which could affect a credit score.
Soldiers were asked to repay bonuses and student loan debts (consisting of student loan repayments and educational loans). The bonuses were given out to boost recruitment numbers or to convince soldiers to stay on for longer instead of retiring from service. The bonuses were reported to be $15,000 while soldiers’ student loan debt could reach as much as $50,000.
