1. Short title This Act may be cited as the Federally Requiring Earned Education-debt Discharges for Vets Act or the FREED Vets Act . 2. Automatic loan discharge for certain veteran borrowers Section 437(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1087(a) ) is amended— (1) by striking paragraph (2) and inserting the following: (2) Disability determinations With respect to a borrower who has been identified under clause (i) or (ii) of paragraph (3)(A), the Secretary shall— (A) consider such borrower permanently and totally disabled for the purpose of discharging the loans of such borrower under this subsection; (B) discharge the loans of such borrower under this subsection, without any further action by the borrower (except that this subparagraph shall not apply to a borrower who opts out of such discharge under subparagraph (C)); (C) in a case of a borrower who lives in a State that may impose a tax liability (as described in paragraph (4)) for such a loan discharge— (i) notify the borrower of the possible tax liability; and (ii) provide an opportunity to opt-out of such loan discharge; and (D) notify such borrower of potential Federal tax implications of such loan discharge under this subsection. ; and (2) by adding at the end the following: (3) Matching program (A) In general Not less than twice per year, 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— (i) who has been assigned a rating of total disability by the Secretary of Veterans Affairs for a service-connected disability (as defined in section 101 of title 38, United States Code)