,,ii  #aafth ,,congress  #ast ,session  
,s4 #bjdi  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,june #bh      
7legislative day1 ,june #bg71 #bjai,mr4 
,reed 7for himself and ,mr4 ,isakson7   
introduced the following bill2 which was
 read twice and referred to the         
,committee on ,health1 ,education1      
,labor1 and ,pensions  ,a ,,bill  ,to   
amend the ,higher ,education ,act of    
#aife to automatically discharge the    
loans of certain veteran borrowers1 and 
for other purposes4  #a4 ,automatic loan
 discharge for certain veteran borrowers
  ,section #dcg7;a7 of the ,higher      
,education ,act of #aife 7#bj ,u4,s4,c4 
#ajhg7;a77 is amended-- 7#a7 by striking
 paragraph 7#b7 and inserting the       
following3  7#b7 ,disability            
determinations ,with respect to a       
borrower who has been identified under  
clause 7i7 or 7ii7 of paragraph         
7#c77;,a71 the ,secretary shall--  7,a7 
consider such borrower permanently and  
totally disabled for the purpose of     

discharging the loans of such borrower  
under this subsection2  7,b7 discharge  
the loans of such borrower under this   
subsection1 without any further action  
by the borrower 7except that this       
subparagraph shall not apply to a       
borrower who opts out of such discharge 
under subparagraph 7,c772  7,c7 in a    
case of a borrower who lives in a ,state
 that may impose a tax liability 7as    
described in paragraph 7#d77 for such a 
loan discharge--  7i7 notify the        
borrower of the possible tax liability2 
and  7ii7 provide an opportunity to     
opt-out of such loan discharge2 and     
7,d7 notify such borrower of potential  
,federal tax implications of such loan  
discharge under this subsection4  2 and 
7#b7 by adding at the end the following3
  7#c7 ,matching program  7,a7 ,in      
general ,not less than twice per year1  
the ,secretary of ,education and the    
,secretary of ,veterans ,affairs shall  
carry out a computer matching program   
under which the ,secretary of ,education

 identifies a borrower--  7i7 who has   
been assigned a rating of total         
disability by the ,secretary of         
,veterans ,affairs for a                
service-connected disability 7as defined
 in section #aja of title #ch1 ,united  
,states ,code72 or  7ii7 who has been   
determined by the ,secretary of         
,veterans ,affairs to be unemployable   
due to a service-connected condition4   
7,b7 ,minor discrepancies ,with respect 
to each borrower who would have been    
identified under clause 7i7 or 7ii7 of  
subparagraph 7,a7 but for a minor       
discrepancy between the information of  
the borrower maintained by the          
,secretary of ,education and the        
,secretary of ,veterans ,affairs 7such  
as a name discrepancy post marriage1 a  
missing hyphen1 a transposed number or  
letter1 or other typo71 the ,secretary  
of ,education and the ,secretary of     
,veterans ,affairs shall work together  
to correct such minor discrepancy of    
such borrower4  7#d7 ,state tax         

liability ,the ,secretary shall         
determine whether a ,state may impose a 
tax liability for the discharge of a    
loan under this subsection1 and in      
making that determination1 the          
,secretary shall--  7,a7 in the case of 
a ,state which does not have an income  
tax1 or which excludes discharge of     
student loans from its definition of    
income for tax purposes1 determine that 
the ,state will not impose tax          
liability2  7,b7 in the case of a ,state
 which conforms the relevant provisions 
of its tax law to section #ajh of the   
,internal ,revenue ,code of #aihf1      
determine that the ,state will not      
impose tax liability2 and  7,c7 in the  
case of a ,state which does not conform 
the relevant provisions of its tax law  
to section #ajh of the ,internal        
,revenue ,code of #aihf1 consult with   
the tax authority of that ,state to     
determine if the ,state would seek to   
impose tax liability and1 if not1       
determine that a ,state will not impose 

tax liability4  4