Our son's college has really been very patient with the VA. They have charged us late payment fees of about $20 per month, but overall there haven't been any harassing phone calls or nasty letters. Our son did talk to the veterans affairs office and they advised him to continue to be patient while the processing gets done.
The issue now is registration for the spring schedule. Without his account paid, he will not be allowed to sign up for classes. We're hopeful that the VA can take care of this soon, and that they'll begin his living expense payments and pay them retroactively to August when he completed the requisite paperwork.