I 
116TH CONGRESS 
1ST SESSION H. R. 3621 
To amend the Fair Credit Reporting Act to remove adverse information 
for certain defaulted or delinquent private education loan borrowers who 
demonstrate a history of loan repayment, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 5, 2019 
Ms. PRESSLEY introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To amend the Fair Credit Reporting Act to remove adverse 
information for certain defaulted or delinquent private 
education loan borrowers who demonstrate a history of 
loan repayment, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Student Borrower 
Credit Improvement Act’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
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(1) The October 2014 report of the Consumer 
Financial Protection Bureau titled ‘‘Annual Report 
of the CFPB Student Loan Ombudsman’’ noted 
many private education loan borrowers, who sought 
to negotiate a modified repayment plan when they 
were experiencing a period of financial distress, were 
unable to get assistance from their loan holders, 
which often resulting in them defaulting on their 
loans. This pattern resembles the difficulty that a 
significant number of mortgage loan borrowers expe-
rienced when they sought to take responsible steps 
to work with their mortgage loan servicer to avoid 
foreclosure during the Great Recession. 
(2) Although private student loan holders may 
allow a borrower to postpone payments while en-
rolled in school full-time, many limit this option to 
a certain time period, usually 48 to 66 months. This 
limited time period may not be sufficient for those 
who need additional time to obtain their degree or 
who want to continue their education by pursing a 
graduate or professional degree. The Consumer Bu-
reau found that borrowers who were unable to make 
payments often defaulted or had their accounts sent 
to collections before they were even able to graduate. 
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SEC. 3. REMOVES ADVERSE INFORMATION FOR CERTAIN 
DEFAULTED OR DELINQUENT PRIVATE EDU-
CATION 
LOAN 
BORROWERS 
WHO 
DEM-
ONSTRATE A HISTORY OF LOAN REPAYMENT. 
(a) IN GENERAL.—The Fair Credit Reporting Act 
(15 U.S.C. 1681 et seq.) is amended by inserting after 
section 605B the following new section: 
‘‘§ 605C. Credit rehabilitation for distressed private 
education 
loan 
borrowers 
who 
dem-
onstrate a history of loan repayment 
‘‘(a) IN GENERAL.—A consumer reporting agency 
may not furnish any consumer report containing any ad-
verse item of information relating to a delinquent or de-
faulted private education loan of a borrower if the bor-
rower has rehabilitated the borrower’s credit with respect 
to such loan by making 9 on-time monthly payments (in 
accordance with the terms and conditions of the bor-
rower’s original loan agreement or any other repayment 
agreement that antedates the original agreement) during 
a period of 10 consecutive months on such loan after the 
date on which the delinquency or default occurred. 
‘‘(b) INTERRUPTION
OF 10-MONTH PERIOD
FOR 
CERTAIN CONSUMERS FACING UNUSUAL EXTENUATING 
LIFE EVENTS.— 
‘‘(1) PERMISSIBLE INTERRUPTION OF THE 10- 
MONTH PERIOD.—A borrower may stop making con-
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secutive monthly payments and be granted a grace 
period after which the 10-month period described in 
subsection (a) shall resume. Such grace period shall 
be provided under the following circumstances: 
‘‘(A) With respect to a borrower who is a 
member of the Armed Forces entitled to incen-
tive pay for the performance of hazardous duty 
under section 301 of title 37, United States 
Code, hazardous duty pay under section 351 of 
such title, or other assignment or special duty 
pay under section 352 of such title, the grace 
period shall begin on the date on which the bor-
rower begins such assignment or duty and end 
on the date that is 6 months after the comple-
tion of such assignment or duty. 
‘‘(B) With respect to a borrower who re-
sides in an area affected by a major disaster or 
emergency declared under the Robert T. Staf-
ford Disaster Relief and Emergency Assistance 
Act (42 U.S.C. 5121 et seq.), the grace period 
shall begin on the date on which the major dis-
aster or emergency was declared and end on the 
date that is 3 months after such date. 
‘‘(2) OTHER CIRCUMSTANCES.— 
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