[Congressional Record Volume 165, Number 110 (Friday, June 28, 2019)]
[Senate]
[Page S4678]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. REED (for himself and Mr. Isakson):
  S. 2049. A bill to amend the Higher Education Act of 1965 to 
automatically discharge the loans of certain veteran borrowers, and for 
other purposes; to the Committee on Health, Education, Labor, and 
Pensions.
  Mr. REED. Mr. President, veterans who have become disabled during 
their service to our Nation should have their student loans forgiven 
without delay, without cumbersome red tape. Unfortunately, that is not 
the case today, which is why I am introducing legislation with my 
colleague from Georgia, Senator Isakson, to require the Department of 
Education to automatically discharge student loans for veterans who are 
totally and permanently disabled.
  In the fall of 2018, the Department of Education and the Department 
of Veterans Affairs announced a data-matching program under which the 
Department of Veterans Affairs would disclose data to the Department of 
Education concerning veterans who are determined to be 100 percent 
disabled or individually unemployable. The Department of Education 
would then alert eligible veterans with Federal student loans of the 
opportunity to apply for debt relief.
  This initiative was an important step forward in improving the 
process for disabled veterans, but it did not go far enough. Too many 
eligible veterans are still saddled with student loans that they cannot 
repay. This spring, in response to hearing questions, the Department of 
Education reported that of the over 40,000 veterans who were identified 
as eligible for loan forgiveness through the matching program, fewer 
than half submitted the required paperwork and, as a result, have not 
had their loans forgiven. Many of these individuals are currently in 
default on their loans, which has dire financial repercussions for them 
and their families.
  We can and must do better. As many Members of Congress have urged, 
along with veterans' service organizations, and 51 bipartisan State 
attorneys general, we should automatically discharge the loans for 
eligible veteran student loan borrowers identified through the matching 
program. Previously, concern about potential tax liability was 
identified as a reason for not moving forward on automatic discharge of 
these loans. However, the Tax Cuts and Jobs Act of 2017 removed the 
Federal tax liability, and we should now move forward without delay to 
automatically forgive these loans.
  Our legislation requires the Departments of Education and Veterans 
Affairs to conduct a computer matching at least twice per year of 
individuals with student loans who have received a rating of total 
disability or who have been determined to be unemployable. It also 
requires the Departments to work together to address minor 
discrepancies in the data to ensure that no veteran falls through the 
cracks due to a clerical error. Finally, it requires the Department of 
Education to automatically discharge student loans for individuals 
identified as eligible through the matching program, unless the 
borrower opts out because the Department has identified a potential 
State tax liability.
  We are proud to have the support of many veterans' organizations for 
this legislation, including High Ground Advocacy, Iraq and Afghanistan 
Veterans of America, Student Veterans of America, The Retired Enlisted 
Association, Veterans Education Success, and U.S. Army Warrant Officers 
Association. I urge all my colleagues to join us in cosponsoring this 
legislation and pushing for its swift passage. Veterans who have served 
our nation and are now unable to work because of a service-connected 
disability should not have to worry about student loan payments.

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