Statements on Introduced Bills and Joint Resolutions

Floor Speech

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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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