.01 Methods of NA Overpayment Collection - Cash Repayment
When the household is financially able to pay the NA overpayment at one time, FAA may collect a lump sum cash payment. The household is not required to liquidate all of its resources in order to make one lump sum payment.
FAA accepts the following methods of payment:
A partial lump sum payment when both of the following apply:
The household prefers to make a partial lump sum payment.
The household is financially unable to pay the entire amount of the overpayment at one time.
Full or partial payment in cash and with NA benefits, when the household chooses this method. (See Repayment With NA Benefits)
The minimum acceptable cash payment schedule allowed in the repayment agreement is the greater amount of the following:
The amount that could be recovered through recoupment
$10 per month
The amount of the overpayment may be compromised when the household does not have sufficient income and liquid assets to repay the total amount in three years. (See Compromising NA Overpayments)
When an Appeal is requested, the local office or Appeals Processing Unit (APU) may submit, in writing, factors to be considered when determining the amount of cash installments. This includes the following:
Gross income and liquid resources AVAILABLE to the household
The household size
Essential living expenses such as:
Medical costs
Dependent care expenses
NOTE Non-essential bills such as credit cards, bank loans, recreation, school tuition, etc. are not considered.