FREED Vets Act

Bill: 116-hr-3598
Sponsor: Rep. Lamb, Conor [D-PA-17]
Introduced: 2019-06-28 in the House
Policy area: Education
Subjects: Disability and paralysis
Disability assistance
Government information and archives
Government lending and loan guarantees
Higher education
Income tax exclusion
State and local taxation
Student aid and college costs
Veterans' education, employment, rehabilitation
Veterans' pensions and compensation

Summary:
action_date: 2019-06-28
text: 

Federally Requiring Earned Education-debt Discharges for Vets Act or the FREED Vets Act

 
This bill requires the Department of Education (ED) to automatically discharge loans under the Federal Family Education Loan program for certain borrowers who are veterans of the U.S. Armed Forces. 
 
Specifically, ED must 
 
 
automatically discharge a veteran borrower's loan when the Department of Veterans Affairs has assigned the borrower a rating of total disability for a service-connected disability or has determined the borrower to be unemployable due to a service-connected condition, 
 
determine whether a state might impose a tax liability for the discharge of such a loan, and 
 
provide the borrower with a notification related to potential tax liability and an opportunity to opt out of such loan discharge. 


action_date: 2020-03-10
text: 

Federally Requiring Earned Education-debt Discharges for Vets Act or the FREED Vets Act

 
This bill requires the Department of Education (ED), after providing specified notice, to automatically discharge loans under the Federal Family Education Loan program for certain borrowers who are veterans of the U.S. Armed Forces. 
 
Specifically, ED must 
 
 
notify a veteran borrower whom the Department of Veterans Affairs has assigned a rating of total disability for a service-connected disability, or who has been determined to be unemployable due to a service-connected condition, of ED's intent to discharge the borrower's loans; 
 
provide the borrower with a period of 60 days to opt out of such loan discharge; and 
 
discharge the veteran borrower's loans if the borrower does not opt out of such loan discharge within 60 days. 



Legislative actions:
action_date: 2020-03-11
text: Received in the Senate and Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
action_date: 2020-03-10
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2020-03-10
text: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H1575-1576)
action_date: 2020-03-10
text: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.
action_date: 2020-03-10
text: DEBATE - The House proceeded with forty minutes of debate on H.R. 3598.
action_date: 2020-03-10
text: Considered under suspension of the rules. (consideration: CR H1575-1577)
action_date: 2020-03-10
text: Mrs. Lee (NV) moved to suspend the rules and pass the bill, as amended.
action_date: 2019-06-28
text: Referred to the House Committee on Education and Labor.
action_date: 2019-06-28
text: Introduced in House
action_date: 2019-06-28
text: Introduced in House