After you receive your debt letter, you may:

Requesting a Debt Waiver

If you request a debt waiver, important considerations include:

  • Collection of the debt will be delayed while you are waiting for a decision on your request. 
  • You must submit a waiver request individually, since each employee’s debt is unique to their situation. 
  • You are strongly encouraged to request a waiver as soon as possible. During the next six months, DFAS is making extra efforts to expedite the processing of these employees’ waiver requests. 
  • Do not include arguments about the validity or amount of the debt in your waiver request as the waiver may be denied on this basis. If you want to contest the validity or the amount of the debt, you must file a request for a hearing before you apply for a waiver.
  • Filing a waiver request does not mean you do not have other options. You can still file an appeal with the Office of Personnel Management to contest your ineligibility or non-entitlement to LQA while also pursuing a debt waiver.  

If you would like individual one-on-one support to prepare and submit your waiver package, you may call the help line at DSN 312-699-0580 or 800-729-3277.

Find out how you can request a waiver for your LQA debtArmy NAF Employees - Please contact your local servicing NAF HR Office for instructions on the NAF debt waiver process.

While there is no authority to approve a blanket (or group) waiver for all affected employees, the Office of the Under Secretary of Defense (Personnel and Readiness) has determined that it is in the best interests of the Department to support requests for debt waivers due to the unique circumstances involved in these debts, so long as the employee was not aware of the fact that he/she was not entitled to LQA and there is no evidence of misrepresentation, fraud or deception to acquire LQA in the first place.

Setting Up a Payment Plan

If you choose to set up a payment plan even though further debt collection will be delayed, you may do so. If you later request a waiver and your debt is waived in full, any payments you have already made against the debt will be refunded to you. Visit the How to Set Up a Payment Plan page for more details.

Requesting a Hearing

While the Department has deemed the LQA payments erroneous, you may disagree with this decision. To contest the validity or amount of the debt, you may file a request for a hearing. If you are outside of the continental United States (OCONUS) and choose to request a hearing, you must file your request within 45 days from the date shown on your official notice of indebtedness (i.e., debt letter). 

If you intend to contest the validity or amount of the debt by filing a request for a hearing, you should not request a waiver at this time. Once you've received a decision on your hearing, you may choose to file a waiver. Please keep in mind that you have 3 years from the date you were initially notified by your employer about receiving erroneous LQA payments to request a debt waiver.

You can generally expect to receive a written decision on your hearing within 60 days after filing your request for the hearing. More details about requesting a hearing are provided with the debt letter you will receive by mail.

Page updated Oct. 27, 2014.