Title: Federal Adjustment in Reporting Student Credit Act of 2017
Policy area: Finance and Financial Sector

Summary:
Federal Adjustment in Reporting Student Credit Act of 2017 or the FAIR Student Credit Act of 2017
This bill amends the Fair Credit Reporting Act to allow a person to request the removal of a previously reported default regarding a qualified education loan from a consumer report if: (1) the lender chooses to offer a loan-rehabilitation program that requires a number of consecutive on-time monthly payments equal to the number of payments specified in a default reduction program under the Higher Education Act of 1965, and (2) the consumer of the loan successfully and voluntarily meets the requirements of that loan-rehabilitation program. A consumer may obtain such rehabilitation benefits only once per loan.
The Government Accountability Office shall report on any hurdles borrowers experience with the private loan-rehabilitation program.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1066 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                S. 1066

  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 8, 2017

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Adjustment in Reporting 
Student Credit Act of 2017'' or the ``FAIR Student Credit Act of 
2017''.

SEC. 2. REHABILITATION OF QUALIFIED EDUCATION LOANS.

    Section 623(a)(1) of the Fair Credit Reporting Act (15 U.S.C. 
1681s-2(a)(1)) is amended by adding at the end the following:
                    ``(E) Rehabilitation of qualified education 
                loans.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of this section, a person may 
                        request to remove a previously reported default 
                        regarding a qualified education loan from a 
                        consumer report, and such request shall not be 
                        considered inaccurate, if--
                                    ``(I) the lender chooses to offer a 
                                loan rehabilitation program that 
                                requires a number of consecutive on-
                                time monthly payments, in accordance 
                                with the terms and conditions of the 
                                loan rehabilitation program, or any 
                                valid and legally binding modification 
                                thereto, equal to the number of 
                                payments specified under section 
                                428F(a)(1)(A) of the Higher Education 
                                Act of 1965 (20 U.S.C. 1078-
                                6(a)(1)(A)); and
                                    ``(II) the consumer of such loan 
                                successfully and voluntarily meets the 
                                requirements of that loan 
                                rehabilitation program.
                            ``(ii) Limitation.--A consumer may obtain 
                        the benefits available under this subsection 
                        with respect to rehabilitating a loan only one 
                        time per loan.
                            ``(iii) Qualified education loan defined.--
                        For purposes of this subparagraph, the term 
                        `qualified education loan' has the meaning 
                        given such term under section 221(d) of the 
                        Internal Revenue Code of 1986.''.

SEC. 3. GAO STUDY.

    (a) Study.--The Comptroller General of the United States shall 
carry out a study on--
            (1) the implementation of section 623(a)(1)(E) of the Fair 
        Credit Reporting Act, as added by section 2; and
            (2) any hurdles borrowers experience with the private loan 
        rehabilitation program.
    (b) Report.--Not later than the end of the 18-month period 
beginning on the date of the enactment of this Act, the Comptroller 
General shall issue a report to the Congress containing all findings 
and determinations made in carrying out the study required under 
subsection (a).
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