Clean Slate through Consolidation Act

Bill: 116-hr-4395
Sponsor: full_name: Rep. Stevens, Haley M. [D-MI-11]
Introduced: 2019-09-19
Policy area: Education
Subjects: Consumer credit

Government information and archives

Government lending and loan guarantees

Student aid and college costs
Latest action: action_date: 2019-09-19
text: Referred to the House Committee on Education and Labor.

Summaries:
action_date: 2019-09-19
action_desc: Introduced in House
text: <p><b>Clean Slate through Consolidation Act</b></p> <p>This bill requires the Department of Education (ED) to have a record of default removed from a borrower's credit history in certain circumstances. </p> <p>Specifically, when a borrower obtains a Federal Direct Consolidation Loan discharging the borrower's liability on a defaulted student loan, ED must request a consumer reporting agency remove the record of default from the borrower's credit history.</p>

tv_txt: I 116th CONGRESS 1st Session H. R. 4395 IN THE HOUSE OF REPRESENTATIVES September 19, 2019 Ms. Stevens (for herself and Ms. Mucarsel-Powell ) introduced the following bill; which was referred to the Committee on Education and Labor A BILL To amend the Higher Education Act of 1965 to require the removal of the record of default from credit history upon obtaining a Federal Direct Consolidation Loan that discharges the defaulted loan.

1. Short title This Act may be cited as the Clean Slate through Consolidation Act . 2. Removal of record of default from credit history upon loan consolidation Section 455(g) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(g) ) is amended— (1) by striking A borrower and inserting the following: (1) In general A borrower ; and (2) by adding at the end the following: (2) Consumer reporting agencies Upon obtaining a Federal Direct Consolidation Loan that discharges the liability on a defaulted loan made, insured, or guaranteed under this title, the Secretary, guaranty agency, or other holder of the loan shall request any consumer reporting agency to which the Secretary, guaranty agency or holder, as applicable, reported the default of the loan, to remove the record of the default from the borrower’s credit history. .