Veterans Education Tax Security Act Introduced by Rep. Ryan Zinke and Rep. Ruben Gallego
Congressman Ryan Zinke joined with Arizona Democratic Congressman Ruben Gallego in introducing the Veterans Education Tax Security Act (VETS Act). The VETS Act ensures that disabled and deceased veterans and deceased members of the Armed Forces are not financially penalized when their federal student loans are lawfully discharged.
Rep. Ryan Zinke:
“Our veterans have already given everything they have to support and defend our nation—some of them sacrificing life and limb. It’s our duty to honor and support them when they return home. Veterans suffer higher unemployment than their civilian counterparts, and many are forced into low-paying jobs when they return, despite their education or specialized training, making it more difficult to make a living. I am proud to join Congressman Gallego in introducing the VETS Act because it 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.”
Currently, veterans who are totally and permanently disabled can get their federal student loan debt discharged. Unfortunately the Department of Education reports any discharged debt over $600 to the IRS where it is considered as income for federal and possible state tax purposes.