H.R. 4591

Clean Slate through Consolidation Act

Latest

I

118th CONGRESS

1st Session

H. R. 4591

IN THE HOUSE OF REPRESENTATIVES

July 12, 2023

Ms. Stevens (for herself, Ms. Adams, Ms. Ross, and Ms. Williams of Georgia) introduced the following bill; which was referred to the Committee on Education and the Workforce

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 by adding at the end the following:

(3)

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.

.