A bill to amend the Higher Education Act of 1965 to automatically discharge the loans of certain veteran borrowers, and for other purposes.

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.