Clean Slate through Consolidation Act

I 116TH CONGRESS 1ST SESSION H. R. 4395 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. 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. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Clean Slate through 4 Consolidation Act’’. 5 VerDate Sep 11 2014 20:36 Sep 23, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4395.IH H4395 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 4395 IH SEC. 2. REMOVAL OF RECORD OF DEFAULT FROM CREDIT 1 HISTORY UPON LOAN CONSOLIDATION. 2 Section 455(g) of the Higher Education Act of 1965 3 (20 U.S.C. 1087e(g)) is amended— 4 (1) by striking ‘‘A borrower’’ and inserting the 5 following: 6 ‘‘(1) IN GENERAL.—A borrower’’; and 7 (2) by adding at the end the following: 8 ‘‘(2) CONSUMER REPORTING AGENCIES.—Upon 9 obtaining a Federal Direct Consolidation Loan that 10 discharges the liability on a defaulted loan made, in- 11 sured, or guaranteed under this title, the Secretary, 12 guaranty agency, or other holder of the loan shall 13 request any consumer reporting agency to which the 14 Secretary, guaranty agency or holder, as applicable, 15 reported the default of the loan, to remove the 16 record of the default from the borrower’s credit his- 17 tory.’’. 18 Æ VerDate Sep 11 2014 20:36 Sep 23, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H4395.IH H4395 pamtmann on DSKBC07HB2PROD with BILLS