FAIR Student Credit Act of 2013

Bill: 113-hr-2561
Sponsor: full_name: Rep. Peters, Gary C. [D-MI-14]
Introduced: 2013-06-27
Policy area: Finance and Financial Sector
Subjects: Congressional oversight

Consumer credit

Government studies and investigations

Higher education

Student aid and college costs
Latest action: action_date: 2013-06-27
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2013-06-27
action_desc: Introduced in House
text: <p>Federal Adjustment in Reporting Student Credit Act of 2013 or the FAIR Student Credit Act of 2013 - Amends the Fair Credit Reporting Act, with respect to the responsibilities of furnishers of information to consumer reporting agencies, to provide for the removal of a previously reported default regarding a qualified education loan from a consumer report if the consumer of the loan meets the requirements of a loan rehabilitation program, where the number of consecutive on-time monthly payments are equal to the number of payments specified in a default reduction program under the Higher Education Act of 1965.</p> <p>Permits a consumer to obtain such rehabilitation benefits only once per loan. </p> <p>Requires the Comptroller General (GAO) to report on any hurdles borrowers experience with the private loan rehabilitation program. </p>

tv_txt: I 113th CONGRESS 1st Session H. R. 2561 IN THE HOUSE OF REPRESENTATIVES June 27, 2013 Mr. Peters of Michigan (for himself, Mr. Bachus , Mrs. Capito , Mr. Grimm , Mrs. Carolyn B. Maloney of New York , Mr. Petri , Mr. Polis , Ms. Velázquez , Mrs. Beatty , and Mr. Stutzman ) introduced the following bill; which was referred to the Committee on Financial Services A BILL To provide for the removal of default information from a borrower’s credit report with respect to certain rehabilitated education loans.

1. Short title This Act may be cited as the Federal Adjustment in Reporting Student Credit Act of 2013 or the FAIR Student Credit Act of 2013 . 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 shall 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 the consumer of such loan successfully and voluntarily meets the requirements of a loan rehabilitation program, where the number of consecutive on-time monthly payments, in accordance with the terms and conditions of the loans, or any valid and legally binding modification thereto, are 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)). (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. . 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).