Section 1 Short title
This Act may be cited as the “Clean Slate through Consolidation Act”.
Clean Slate through Consolidation Act
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.
Sec. 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 striking “A borrower” and inserting the following:
“(1) In general—A borrower”
by adding at the end the following:
“(2) 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 the record of the default from the borrower’s credit history.”