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[Page S4678]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
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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