S. 1066Senate115th Congress (2017-2019)In Committee

FAIR Student Credit Act of 2017

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Updated April 15, 2026 at 3:19 PM UTC

The FAIR Student Credit Act of 2017 changes the Fair Credit Reporting Act so that a default entry for a qualified education loan can be removed from a borrower’s credit report once the loan has been successfully rehabilitated. It applies to borrowers with federal or private student loans that meet the definition of a qualified education loan and to lenders that offer a rehabilitation program meeting specific payment requirements. The bill also directs the Government Accountability Office to study how the new rule works and what problems borrowers may face.

Key Provisions

Adds a new subsection (E) to 15 U.S.C. 1681s‑2(a)(1) allowing a consumer to request removal of a previously reported default on a qualified education loan after completing a lender‑offered rehabilitation program.
The rehabilitation program must require a set number of consecutive on‑time monthly payments as defined by the Higher Education Act, and the borrower must voluntarily meet those requirements.
The removal of the default can be done only once per loan.
Defines “qualified education loan” by reference to the Internal Revenue Code definition.
Requires the Comptroller General to conduct a study on the implementation of the new reporting rule and any obstacles borrowers encounter, with a report due within 18 months of the law’s enactment.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Banking, Housing, and Urban Affairs Committee

May 8, 2017

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SenateIntro Referral

Introduced in Senate

May 8, 2017

SenateIntro Referral

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Banking, Housing, and Urban Affairs Committee

May 8, 2017

Bill Text

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Introduced in SenateIssued May 8, 2017

115th CONGRESS

1st Session

S. 1066

IN THE SENATE OF THE UNITED STATES

May 8, 2017

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.

Short title

This Act may be cited as the Federal Adjustment in Reporting Student Credit Act of 2017 or the FAIR Student Credit Act of 2017.

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.

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).