II 

114TH CONGRESS 

1ST SESSION S. 1309 

To provide for the removal of default information from a borrower’s credit 

report with respect to certain rehabilitated education loans. 

IN THE SENATE OF THE UNITED STATES 

MAY 12, 2015 

Mr. PETERS (for himself and Mrs. CAPITO) introduced the following bill; 

which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To provide for the removal of default information from a 

borrower’s credit report with respect to certain rehabilitated education loans. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Federal Adjustment 

5 in Reporting Student Credit Act of 2015’’ or the ‘‘FAIR 

6 Student Credit Act of 2015’’. 


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1 SEC. 2. REHABILITATION OF QUALIFIED EDUCATION 

2 LOANS. 

3 Section 623(a)(1) of the Fair Credit Reporting Act 

4 (15 U.S.C. 1681s–2(a)(1)) is amended by adding at the 

5 end the following: 

6 ‘‘(E) REHABILITATION OF QUALIFIED

7 EDUCATION LOANS.— 

8 ‘‘(i) IN GENERAL.—Notwithstanding 

9 any other provision of this section, a per10 son may request to remove a previously re11 ported default regarding a qualified edu12 cation loan from a consumer report, and 

13 such request shall not be considered inac14 curate, if— 

15 ‘‘(I) the lender chooses to offer a 

16 loan rehabilitation program that re17 quires a number of consecutive on18 time monthly payments, in accordance 

19 with the terms and conditions of the 

20 loan rehabilitation program, or any 

21 valid and legally binding modification 

22 thereto, equal to the number of pay23 ments specified under section 

24 428F(a)(1)(A) of the Higher Edu25 cation Act of 1965 (20 U.S.C. 1078– 

26 6(a)(1)(A)); and 


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1 ‘‘(II) the consumer of such loan 

2 successfully and voluntarily meets the 

3 requirements of that loan rehabilita4 tion program. 

5 ‘‘(ii) LIMITATION.—A consumer may 

6 obtain the benefits available under this 

7 subsection with respect to rehabilitating a 

8 loan only one time per loan. 

9 ‘‘(iii) QUALIFIED EDUCATION LOAN

10 DEFINED.—For purposes of this subpara11 graph, the term ‘qualified education loan’ 

12 has the meaning given such term under 

13 section 221(d) of the Internal Revenue 

14 Code of 1986.’’. 

15 SEC. 3. GAO STUDY. 

16 (a) STUDY.—The Comptroller General of the United 

17 States shall carry out a study on— 

18 (1) the implementation of section 623(a)(1)(E) 

19 of the Fair Credit Reporting Act, as added by sec20 tion 2; and 

21 (2) any hurdles borrowers experience with the 

22 private loan rehabilitation program. 

23 (b) REPORT.—Not later than the end of the 18- 

24 month period beginning on the date of the enactment of 

25 this Act, the Comptroller General shall issue a report to 


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1 the Congress containing all findings and determinations 

2 made in carrying out the study required under subsection 

3 (a). 

Æ 


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