FREED Vets Act

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.