FAIR Student Credit Act of 2015

Bill: 114-s-1309
Sponsor: full_name: Sen. Peters, Gary C. [D-MI]
Introduced: 2015-05-12
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: 2015-05-12
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2015-05-12
action_desc: Introduced in Senate
text: <p><b>Federal Adjustment in Reporting Student Credit Act of 2015 or the FAIR Student Credit Act of 2015 </b></p> <p>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 such loan successfully and voluntarily meets the requirements of that loan rehabilitation program. </p> <p>Permits a consumer to obtain such rehabilitation benefits only once per loan. </p> <p>Requires the Government Accountability Office to report on any hurdles borrowers experience with the private loan rehabilitation program. </p>

tv_txt: II 114th CONGRESS 1st Session S. 1309 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. Short title This Act may be cited as the Federal Adjustment in Reporting Student Credit Act of 2015 or the FAIR Student Credit Act of 2015 . 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. . 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).