To require reporting to national consumer reporting agencies regarding Federal student loans in order to promote the responsible repayment of such loans and ensure the completeness of information contained in consumer credit reports and scores.

1. Inserts new text at the end of section 312

   Inserts

   In S. 1753 · Placed on Calendar Senate

   (b) Furnisher Liability Exception.--Section 623(a)(5) of the Fair Credit Reporting Act (15 U.S.C. 1681s-2(a)(5)) is amended by adding at the end the following: "For purposes of this paragraph only, and subject to the requirements of this section, a person that so notifies the agency may rely on the date provided by the entity to whom the account was owed at the time that the delinquency occurred, provided that the consumer does not dispute the information.".

   Inserted: (c) Reports to Consumer Reporting Agencies.--

   Inserted: (1) Reports.--Section 430A(a) of the Higher Education Act of 1965 (20 U.S.C. 1080a(a)) is amended to read as follows:

   Inserted: "(a) Agreements to Exchange Information.--

   Inserted: "(1) In general.--For the purpose of promoting responsible repayment of loans covered by Federal loan insurance pursuant to this title or covered by a guaranty agreement pursuant to section 428, the Secretary, each guaranty agency, eligible lender, and subsequent holder shall enter into an agreement with each national consumer reporting agency as described in section 603(p) of the Fair Credit Reporting Act (15 U.S.C. 1681a(p)) to exchange such information as is required by the Secretary concerning each borrower of a loan made, insured, or guaranteed under this title who is served by the Secretary, agency, lender, or holder, respectively, regardless of the default status of the borrower. Such information shall be reported to the agencies regularly, shall be identified as pertaining to such a loan, and shall include any positive or negative repayment information relevant to the borrower.

   Inserted: "(2) Objections raised by borrowers.--For the purpose of assisting the reporting agencies in complying with the Fair Credit Reporting Act, such agreements may provide for timely response by the Secretary (concerning loans covered by Federal loan insurance), by a guaranty agency, eligible lender, or subsequent holder (concerning loans covered by a guaranty agreement), or to requests from the reporting agencies, for responses to objections raised by borrowers.

   Inserted: "(3) Nonpayment.--Subject to the requirements of subsection (c), such agreements shall require the Secretary, the guaranty agency, eligible lender, or subsequent holder, as appropriate, to disclose to the reporting agencies, with respect to any loan under this part that has not been repaid by the borrower--

   Inserted: "(A) the total amount of loans made to any borrower under this part and the remaining balance of the loans;

   Inserted: "(B) information concerning the date of any default on the loan and the collection of the loan, including information concerning the repayment status of any defaulted loan on which the Secretary has made a payment pursuant to section 430(a) or the guaranty agency has made a payment to the previous holder of the loan; and

   Inserted: "(C) the date of cancellation of the note upon completion of repayment by the borrower of the loan or payment by the Secretary pursuant to section 437.".

   Inserted: (2) Technical and Conforming Amendments.--The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is amended--

   Inserted: (A) in section 427(a)(2)(G)(i) (20 U.S.C. 1077(a)(2)(G)(i)), by striking "credit bureau organizations" and inserting "reporting agencies";

   Inserted: (B) in section 428C(b)(4)(E)(i) (20 U.S.C. 1078-3(b)(4)(E)(i)), by striking "credit bureau organizations" and inserting "reporting agencies"; and

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   Inserted: (C) in section 430A (20 U.S.C. 1080a)--

   Inserted: (i) in subsection (b)--

   Inserted: (I) by striking "such organizations" and inserting "the reporting agencies"; and

   Inserted: (II) by striking "(a)(2)" and inserting "(a)(3)(B)";

   Inserted: (ii) in subsection (c)(2), by striking "such organizations" and inserting "the reporting agencies";

   Inserted: (iii) in subsection (b)(4)--

   Inserted: (I) by striking "(a)(2)" and inserting "(a)(3)(B)"; and

   Inserted: (II) by striking "credit bureau organizations" and inserting "the reporting agencies";

   Inserted: (iv) in subsection (d), by striking "credit bureau organization" and inserting "reporting agency"; and

   Inserted: (v) in subsection (f), by striking "consumer reporting agency" each place the term appears and inserting "reporting agency".

   Original wording

   At the end of section 312, insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed