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Bill would assist disabled vets on discharged loans

Bill would assist disabled vets on discharged loans
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Reps. Ryan ZinkeRyan Keith ZinkeThe Hill's Morning Report - Biden launches blitz for jobs plan with 'thank you, Georgia' OVERNIGHT ENERGY: Court sets in motion EPA ban on pesticide linked to developmental issues | Trump Interior Secretary Zinke files to run for Congress, again | Senate passes bipartisan B water infrastructure bill Trump Interior Secretary Zinke files to run for Congress, again MORE (R-Mont.) and Ruben GallegoRuben GallegoHouse Democrat: Republicans 'treating Capitol Police like shit' were 'the most scared' during riot Hispanic Democrats slam four Republicans over Jan. 6 vote in new ads Democrats want Arizona to reject mapping firm's application to redraw districts MORE (D-Ariz.), both freshman lawmakers and war veterans, teamed up to introduce a bill Tuesday that seeks to ensure disabled veterans and families of deceased veterans are not burdened by taxes on discharged loans. 

Veterans who are totally and permanently disabled currently can get their federal student loan debt discharged, but any discharged debt over $600 would be reported to the IRS, where it is considered income for federal and possible state tax purposes. 

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The Veterans Education Tax Security Act (VETS Act) would exclude federal discharged loans from gross income when a veteran is totally and permanently disabled or deceased. In certain circumstances, it would apply to parents who took out student loans on behalf of a deceased veteran. 

The bill "closes the loophole that punishes disabled veterans for loan forgiveness and makes it easier for them to make a living when they return home from the battlefield," Zinke said in a statement.

"Our veterans have already given everything they have to support and defend our nation — some of them sacrificing life and limb," said Zinke, a retired Navy SEAL.

Gallego, a former Marine, added, "In many instances, student loan forgiveness puts disabled veterans and their families in substantial unfair tax liability. 

"Veterans and our men and women in uniform put everything on the line to defend our country. We should stand behind them and their families during difficult times and help safeguard them from such an unfair and unexpected financial situation," he said.