Clean Slate through Consolidation Act

Bill: 117-hr-7000
Sponsor: full_name: Rep. Stevens, Haley M. [D-MI-11]
Introduced: 2022-03-08
Policy area: Education
Latest action: action_date: 2022-03-08
text: Referred to the House Committee on Education and Labor.

Summaries:
action_date: 2022-03-08
action_desc: Introduced in House
text: <p><b>Clean Slate through Consolidation Act</b><strong></strong></p> <p>This bill provides for the removal of any adverse credit history related to a defaulted federal student loan from a borrower's credit history once the borrower has obtained a Federal Direct Consolidation Loan discharging the borrower's liability on the defaulted loan.</p>

tv_txt: I 117th CONGRESS 2d Session H. R. 7000 IN THE HOUSE OF REPRESENTATIVES March 8, 2022 Ms. Stevens (for herself, Ms. Ross , Ms. Williams of Georgia , and Ms. Adams ) 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 any adverse item of information relating to such loan from the borrower’s credit history. .