Disabled Veterans Student Loan Protection Act of 2016

Disabled Veterans Student Loan Protection Act of 2016 This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 to modify the federal student loan discharge process for a veteran who has a total and permanent disability. Specifically, it directs the Department of Education (ED) to establish a system to automatically transmit, from the Department of Veterans Affairs (VA) or the Department of Defense (DOD), an applicable determination of unemployability or assignment of a service-connected disability rating of 100%. ED must accept, as sufficient documentation of a borrower's total and permanent disability, a determination of unemployability by the VA or an assignment of a service-connected disability rating of 100% by the VA or DOD that is transmitted in accordance with such system.