Veterans Education Tax Security Act

Floor Speech

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Mr. GALLEGO. Mr. Speaker, today, veterans who are disabled can get
their Federal student loan debt discharged. But, unfortunately, the
Department of Education reports discharged debt to the IRS, where it is
considered as income for Federal and possible State tax purposes. In
many instances, having Federal student loan debt discharged results in
a substantial tax liability.

That is why I am introducing the Veterans Education Tax Security
Act--the VETS Act. This bill will ensure that disabled veterans,
deceased veterans, and deceased members of the Armed Forces are not
financially penalized when their Federal student loan debts are
lawfully discharged.

As veterans ourselves, Congressman Zinke and I both understand the
importance of putting politics aside to support our soldiers and
veterans who have risked their whole lives and their families to defend
our country. They, or their families, should not be penalized when
Federal student loans are forgiven because of death or disability.

I thank Congressman Zinke for his support on this issue and look
forward to working with my colleagues on both sides of the aisle to
champion fairness for our veterans.

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