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The law prohibits payment of VA benefits for a course from which the student withdraws (X or U grades), or for a course which will not be used in computing requirements for graduation, such as an I, W, or a Z (for auditing.) Payments may be allowed, however, if the student submits evidence of acceptable mitigating circumstances to explain why the course should not be completed and/or a credible grade assigned.

Mitigating circumstances are unanticipated and unavoidable events or situations beyond a student's control that prevent him or her from completing a course with a credible grade. This means that if a student drops a course, unless he or she can show the DVA that there are mitigating circumstances, s/he must return all the money paid to him or her for the pursuit of that course from the start of the term, not merely from the date he or she dropped the course.

The following circumstances are representative of those which the DVA considers to be mitigating provided they prevented the veteran or eligible person from pursuing the program of education continuously. This list is NOT all inclusive.
a) A serious injury or illness affliction to the student during the enrollment period;
b) A serious illness or death in the student's immediate family;
c) Unforeseen family or financial obligations requiring a change in their terms, hours, or place of the student's employment, and precluding further pursuit or successful completion of a course;
d) Discontinuance of a course by the school;
e) Unanticipated active duty military service, including active duty training;
f) An unavoidable geographical transfer resulting from the student's employment;
g) An unavoidable change in the student's condition of employment;
h) Unanticipated difficulties with the child care arrangements the student has made for the period during which he or she is attending classes.

Examples of reasons the DVA may not accept are:
a) Withdrawal to avoid a failing grade;
b) Dislike of the professor;
c) Too many courses attempted.

For withdrawals on or after June 1, 1989, mitigating circumstances will be considered to exist without explanation by the student in the first instance of withdrawal from a course or courses totally not more than 6 semester hours or the equivalent. This does not mean, however, that the school does not have to report the withdrawal. It means that in the first instance of withdrawal, mitigating circumstances automatically are presumed to exist, up to a total of 6 semester hours.

If you are applying for restoration of benefits based on mitigating circumstances, it is important that you provide the DVA with documented material/data such as a doctor's note, hospital bill, letter from your employer explaining any employment changes affecting your academic status, or a letter from your academic advisor. It is also highly recommended that students furnish a Statement of Mitigating Circumstances ***link to form*** along with their notification of reductions and terminations. You should not delay contacting the OMVA even if you do not have the necessary supporting documentation. Written notification can be submitted at a later date.