Section 1 Short title
This Act may be cited as the “Federal Adjustment in Reporting Student Credit Act of 2015” or the “FAIR Student Credit Act of 2015”.
Federal Adjustment in Reporting Student Credit Act of 2015
A BILL
To provide for the removal of default information from a borrower’s credit report with respect to certain rehabilitated education loans, and for other purposes.
Sec. 2 Rehabilitation of qualified education loans
Section 623(a) of the Fair Credit Reporting Act (15 U.S.C. 1681s–2(a)(1)) is amended by adding at the end the following:
“(10) Rehabilitation of qualified education loans
“(A) In general—Notwithstanding any other provision of this section, a consumer may request to remove a previously reported default regarding a qualified education loan from the consumer report relating to the consumer, and such request shall not be considered inaccurate, if the consumer to whom such loan relates successfully and voluntarily meets the requirements of a private loan rehabilitation program in which the number of consecutive on-time monthly payments (in accordance with the terms and conditions of the loan or any valid and legally binding modification thereto) is 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)).
“(B) Limitation—A consumer may obtain the benefits available under this subsection with respect to rehabilitating a loan only one time per loan.
“(C) 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.”
Sec. 3 GAO Study
Study— The Comptroller General of the United States shall carry out a study on—
the implementation of section 623(a)(1)(E) of the Fair Credit Reporting Act, as added by section 2; and
any challenges borrowers experience with the private loan rehabilitation program.
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 the findings and determinations made in carrying out the study required under subsection (a).