; (B) in paragraph (1), as designated by subparagraph (A), by striking to subsections (b) and (d) of this section and inserting to paragraphs (2) through (6) of this subsection, subsections (b) and (e) of this section, ; and (C) by adding at the end the following new paragraph: (2) Notwithstanding any other provision of law, the Secretary may only deduct under paragraph (1) an amount of the indebtedness of a veteran, the estate of a veteran, a spouse or child of a veteran who is deceased, or a recipient of educational assistance under chapter 30, 31, 32, 33, 34, or 35 of this title if the indebtedness is a result of one or more of the following: (A) An error made by or failure to report required information to the Department by the veteran, estate, spouse, child, or recipient of educational assistance, as the case may be. (B) Fraud perpetrated by the veteran, estate, spouse, child, or recipient of educational assistance, as the case may be. (C) A misrepresentation made by the veteran, estate, spouse, child, or recipient of educational assistance, as the case may be. (D) In the case of a recipient of educational assistance under such chapters, a reduction in or termination of pursuit of a program of education by the recipient. (E) A failure described in section 3319(i)(2)(A) of this title. (3) (A) The Secretary may not deduct under paragraph (1) from any payment made under chapter 11 or 15 of this title more than the lessor of— (i) 25 percent of such payment