‘‘(A) IN
GENERAL.—The Bureau may 
allow a borrower demonstrating hardship to 
stop making consecutive monthly payments and 
be granted a grace period after which the 10- 
month period described in subsection (a) shall 
resume. 
‘‘(B) BORROWER DEMONSTRATING HARD-
SHIP DEFINED.—In this paragraph, the term 
‘borrower demonstrating hardship’ means a 
borrower or a class of borrowers who, as deter-
mined by the Bureau, is facing or has experi-
enced unusual extenuating life circumstances or 
events that result in severe financial or personal 
barriers such that the borrower or class or bor-
rowers does not have the capacity to comply 
with the requirements of subsection (a). 
‘‘(c) PROCEDURES.—The Bureau shall establish pro-
cedures to implement the credit rehabilitation described 
in this section, including— 
‘‘(1) the manner, content, and form for request-
ing credit rehabilitation; 
‘‘(2) the method for validating that the bor-
rower is satisfying the requirements of subsection 
(a); 
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‘‘(3) the manner, content, and form for noti-
fying the private educational loan holder of— 
‘‘(A) the borrower’s participation in credit 
rehabilitation under subsection (a); 
‘‘(B) the requirements of subsection (d); 
and 
‘‘(C) the restrictions of subsection (f); 
‘‘(4) the manner, content, and form for noti-
fying a consumer reporting agency of— 
‘‘(A) the borrower’s participation in credit 
rehabilitation under subsection (a); and 
‘‘(B) the requirements of subsection (d); 
‘‘(5) the method for verifying whether a bor-
rower qualifies for the grace period described in sub-
section (b); 
‘‘(6) the manner, content, and form of notifying 
a consumer reporting agency and private educational 
loan holder that a borrower was granted a grace pe-
riod; and 
‘‘(7) the method for a borrower to demonstrate 
that the borrower has successfully satisfied the re-
quirements under subsection (a) and for notifying a 
consumer reporting agency and private educational 
loan holder. 
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‘‘(d) STANDARDIZED REPORTING CODES.—A con-
sumer reporting agency shall develop standardized report-
ing codes for use by any private educational loan holder 
to identify and report a borrower’s status of making and 
completing 9 on-time monthly payments during a period 
of 10 consecutive months on a delinquent or defaulted pri-
vate education loan, including codes specifying the grace 
period described in subsection (b) and any agreement to 
modify monthly payments. Such codes shall not appear on 
any report provided to a third party, and shall be removed 
from the consumer’s credit report upon the consumer’s 
completion of the rehabilitation period under this section. 
‘‘(e) ELIMINATING BARRIERS TO CREDIT REHABILI-
TATION.—A consumer report in which a private edu-
cational loan holder furnishes the standardized reporting 
codes described in subsection (d) to a consumer reporting 
agency, or in which a consumer reporting agency includes 
such codes, shall be deemed to comply with the require-
ments for accuracy and completeness required under sec-
tions 623(a)(1) and 630. 
‘‘(f) PROHIBITION
ON CIVIL ACTIONS
FOR CON-
SUMERS PURSUING REHABILITATION.—A private edu-
cational loan holder may not commence or proceed with 
any civil action against a borrower with respect to a delin-
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quent or defaulted loan during the period of rehabilitation 
if the loan holder has been notified— 
‘‘(1) under subsection (c)(3) of a borrower’s in-
tent to participate in rehabilitation; 
‘‘(2) under subsection (c)(6) that a borrower 
was granted the grace period; or 
‘‘(3) under subsection (c)(7) that the borrower 
has successfully satisfied the requirements under 
subsection (a). 
‘‘(g) REHABILITATION DOES NOT AFFECT STATUTE 
OF LIMITATIONS FOR PRIOR DEBT.—Payments by a bor-
rower on a private education loan that are made during 
and after a period of rehabilitation under this section shall 
have no effect on the statute of limitations with respect 
to payments that were due on such private education loan 
before the beginning of the period of rehabilitation. 
‘‘(h) REQUIREMENT FOR PAYMENT PLANS.—If a pri-
vate educational loan holder enters into a payment plan 
with a borrower on a private education loan during a pe-
riod of rehabilitation, such payment plan shall be reason-
able and affordable, as determined by the Bureau. 
‘‘(i) RULES OF CONSTRUCTION.— 
‘‘(1) APPLICATION TO SUBSEQUENT DEFAULT 
OR DELINQUENCY.—A borrower who satisfies the re-
quirements under subsection (a) shall be eligible for 
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additional credit rehabilitation described in sub-
section (a) with respect to any subsequent default or 
delinquency of the borrower on the rehabilitated pri-
vate education loan. 
‘‘(2) INTERRUPTION
OF
THE
CONSECUTIVE 
PAYMENT PERIOD REQUIREMENT.—The grace period 
described in subsection (b)(1)(A) shall not apply if 
any regulation promulgated under section 987 of 
title 10, United States Code (commonly known as 
the Military Lending Act), or the Servicemembers 
Civil Relief Act (50 U.S.C. App. 501 et seq.) allows 
for a grace period or other interruption of the 10- 
month period described in subsection (a) and such 
grace period or other interruption is longer than the 
period described in subsection (b)(1)(A) or otherwise 
provides greater protection or benefit to the bor-
rower who is a member of the Armed Forces.’’. 
(b) CONFORMING AMENDMENT.—Section 623(a)(1) 
of the Fair Credit Reporting Act (15 U.S.C. 1681s– 
2(a)(1)) is amended by striking subparagraph (E). 
(c) TABLE OF CONTENTS AMENDMENT.—The table 
of contents of the Fair Credit Reporting Act is amended 
by inserting after the item relating to section 605B the 
following new item: 
‘‘605C. Credit rehabilitation for distressed private education loan borrowers who 
demonstrate a history of loan repayment.’’. 
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SEC. 4. PRIVATE EDUCATION LOAN DEFINITIONS. 
Section 603 of the Fair Credit Reporting Act (15 
U.S.C. 1681a) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(bb) PRIVATE EDUCATION LOAN DEFINITIONS.— 
The terms ‘private education loan’ and ‘private edu-
cational lender’ have the meanings given such terms, re-
spectively, in section 140(a) of the Truth in Lending 
Act.’’. 
SEC. 5. GENERAL BUREAU RULEMAKING. 
Except as otherwise provided, not later than the end 
of the 2-year period beginning on the date of the enact-
ment of this Act, the Bureau of Consumer Financial Pro-
tection shall issue final rules to implement the amend-
ments made by this Act. 
Æ 
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