From news release:

Hutchison Bill would Block VA from Sending Debt Collection Letters

WASHINGTON - U.S. Senator Kay Bailey Hutchison (R-TX), Ranking Member of the Senate Military Construction and Veterans Affairs Appropriations subcommittee, today introduced legislation to change Title 38 of the U.S. Code to forgive the debt owed to the U.S. Department of Veterans Affairs (VA) of men and women who have lost their lives in combat.

"This bill is about honoring our fallen heroes by treating the families they left behind with dignity and by showing them we mean it when we tell them our nation is truly grateful," said Sen. Hutchison.

Current law states that if a member of our Armed Forces is killed and owes the VA any outstanding indebtedness, the Secretary of VA is required to contact the family for collection.  Current law allows the VA Secretary some discretion for waiving certain cases.  Sen. Hutchison's bill would remove that discretion and forgive all debts that fall into this category.

To date the VA has sought to receive over $56,000 from 22 deceased soldiers, with most of the indebtedness in college education loans.  Once a soldier in these cases is killed, the VA must then contact the families of the deceased and ask that they be reimbursed from the estate for that GI bill education payment.

"The fact that the VA is forced to collect a few hundred dollars from bereaved mothers and fathers for something as simple as a small debt for education benefits is ludicrous," said Sen. Hutchison.

There are cases in Wisconsin, North Carolina, Illinois, Iowa, Connecticut, Nebraska, Colorado, Michigan, Washington, California, New York, Kentucky, Georgia and South Carolina.  Three of the 22 cases occurred in the State of Texas, which is more than any other state:

• An Army soldier on his third tour in Iraq was killed by a sniper's bullet and owed the government $389 for an education overpayment. The family paid this debt in full because they believed it was the right thing to do.
• An Army Sergeant who had served in the U.S. Marine Corps before enlisting in the Army attended two different colleges with VA education benefits. After serving one tour of duty in Afghanistan, he was serving his second tour in Iraq when he was killed by a bomb explosion. He owed the VA $2,282 in student loans and was survived by a wife and four children. The family paid the debt because they, too, felt it was the right thing to do.
• A Marine reservist who received education assistance to attend Texas A&M University was killed in an explosion in Iraq. The VA informed his mother of his death with a collection letter that said he owed the VA $845, which must be collected from his estate.

S. 2536, the Combat Veterans Debt Elimination Act would relieve grieving families from paying such debt and remove the provision in law which requires the VA to seek the collection of such debt.  It is retroactive to September 11, 2001.

Sen. Hutchison today asked the Senate Majority and Minority Leaders to bypass the committee process and bring this legislation to the floor before another family suffers the indignity of the current law.

"We can and should correct this requirement and honor the families of our fallen heroes," said Sen. Hutchison.

Sen. Hutchison is a member of the Senate Veterans Affairs Committee.