[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2561 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 2561

  To provide for the removal of default information from a borrower's 
  credit report with respect to certain rehabilitated education loans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 27, 2013

   Mr. Peters of Michigan (for himself, Mr. Bachus, Mrs. Capito, Mr. 
 Grimm, Mrs. Carolyn B. Maloney of New York, Mr. Petri, Mr. Polis, Ms. 
  Velazquez, Mrs. Beatty, and Mr. Stutzman) introduced the following 
    bill; which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
  To provide for the removal of default information from a borrower's 
  credit report with respect to certain rehabilitated education loans.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Adjustment in Reporting 
Student Credit Act of 2013'' or the ``FAIR Student Credit Act of 
2013''.

SEC. 2. 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 shall 
                        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 the consumer of such 
                        loan successfully and voluntarily meets the 
                        requirements of a loan rehabilitation program, 
                        where the number of consecutive on-time monthly 
                        payments, in accordance with the terms and 
                        conditions of the loans, or any valid and 
                        legally binding modification thereto, are 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)).
                            ``(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.''.

SEC. 3. 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).
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