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116th Congress    }                                    {       Report
                        HOUSE OF REPRESENTATIVES
 1st Session      }                                    {      116-331

======================================================================


 
                STUDENT BORROWER CREDIT IMPROVEMENT ACT

                                _______
                                

December 9, 2019.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Ms. Waters, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 3621]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 3621) to amend the Fair Credit Reporting Act to 
remove adverse information for certain defaulted or delinquent 
private education loan borrowers who demonstrate a history of 
loan repayment, and for other purposes, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     4
Background and Need for Legislation..............................     4
Section-by-Section Analysis......................................     6
Hearings.........................................................     7
Committee Consideration..........................................     8
Committee Votes..................................................     8
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................    11
Statement of Performance Goals and Objectives....................    11
New Budget Authority and CBO Cost Estimate.......................    11
Committee Cost Estimate..........................................    13
Unfunded Mandate Statement.......................................    13
Advisory Committee...............................................    13
Application of Law to the Legislative Branch.....................    13
Earmark Statement................................................    13
Duplication of Federal Programs..................................    13
Changes to Existing Law..........................................    14
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Student Borrower Credit Improvement 
Act''.

SEC. 2. FINDINGS.

  Congress finds the following:
          (1) The October 2014 report of the Bureau of Consumer 
        Financial Protection titled ``Annual Report of the CFPB Student 
        Loan Ombudsman'' noted many private education loan borrowers, 
        who sought to negotiate a modified repayment plan when they 
        were experiencing a period of financial distress, were unable 
        to get assistance from their loan holders, which often 
        resulting in them defaulting on their loans. This pattern 
        resembles the difficulty that a significant number of mortgage 
        loan borrowers experienced when they sought to take responsible 
        steps to work with their mortgage loan servicer to avoid 
        foreclosure during the Great Recession.
          (2) Although private student loan holders may allow a 
        borrower to postpone payments while enrolled in school full-
        time, many limit this option to a certain time period, usually 
        48 to 66 months. This limited time period may not be sufficient 
        for those who need additional time to obtain their degree or 
        who want to continue their education by pursing a graduate or 
        professional degree. The Bureau of Consumer Financial 
        Protection found that borrowers who were unable to make 
        payments often defaulted or had their accounts sent to 
        collections before they were even able to graduate.

SEC. 3. REMOVAL OF ADVERSE INFORMATION FOR CERTAIN PRIVATE EDUCATION 
                    LOAN BORROWERS.

  (a) In General.--The Fair Credit Reporting Act (15 U.S.C. 1681 et 
seq.) is amended by inserting after section 605B the following new 
section:

``Sec. 605C. Credit rehabilitation for distressed private education 
                    loan borrowers.

  ``(a) In General.--A consumer reporting agency may not furnish any 
consumer report containing any adverse item of information relating to 
a delinquent or defaulted private education loan of a borrower if the 
borrower has rehabilitated the borrower's credit with respect to such 
loan by making 9 on-time monthly payments (in accordance with the terms 
and conditions of the borrower's original loan agreement or any other 
repayment agreement that antedates the original agreement) during a 
period of 10 consecutive months on such loan after the date on which 
the delinquency or default occurred.
  ``(b) Interruption of 10-Month Period for Certain Consumers.--
          ``(1) Permissible interruption of the 10-month period.--A 
        borrower may stop making consecutive monthly payments and be 
        granted a grace period after which the 10-month period 
        described in subsection (a) shall resume. Such grace period 
        shall be provided under the following circumstances:
                  ``(A) With respect to a borrower who is a member of 
                the Armed Forces entitled to incentive pay for the 
                performance of hazardous duty under section 301 of 
                title 37, United States Code, hazardous duty pay under 
                section 351 of such title, or other assignment or 
                special duty pay under section 352 of such title, the 
                grace period shall begin on the date on which the 
                borrower begins such assignment or duty and end on the 
                date that is 6 months after the completion of such 
                assignment or duty.
                  ``(B) With respect to a borrower who resides in an 
                area affected by a major disaster or emergency declared 
                under the Robert T. Stafford Disaster Relief and 
                Emergency Assistance Act, the grace period shall begin 
                on the date on which the major disaster or emergency 
                was declared and end on the date that is 3 months after 
                such date.
          ``(2) Other circumstances.--
                  ``(A) In general.--The Bureau may allow a borrower 
                demonstrating hardship to stop making consecutive 
                monthly payments and be granted a grace period after 
                which the 10-month period described in subsection (a) 
                shall resume.
                  ``(B) Borrower demonstrating hardship defined.--In 
                this paragraph, the term `borrower demonstrating 
                hardship' means a borrower or a class of borrowers who, 
                as determined by the Bureau, is facing or has 
                experienced unusual extenuating life circumstances or 
                events that result in severe financial or personal 
                barriers such that the borrower or class of borrowers 
                does not have the capacity to comply with the 
                requirements of subsection (a).
  ``(c) Procedures.--The Bureau shall establish procedures to implement 
the credit rehabilitation described in this section, including--
          ``(1) the manner, content, and form for requesting credit 
        rehabilitation;
          ``(2) the method for validating that the borrower is 
        satisfying the requirements of subsection (a);
          ``(3) the manner, content, and form for notifying the private 
        educational loan holder of--
                  ``(A) the borrower's participation in credit 
                rehabilitation under subsection (a);
                  ``(B) the requirements described in subsection (d); 
                and
                  ``(C) the restrictions described in subsection (f);
          ``(4) the manner, content, and form for notifying a consumer 
        reporting agency of--
                  ``(A) the borrower's participation in credit 
                rehabilitation under subsection (a); and
                  ``(B) the requirements described in subsection (d);
          ``(5) the method for verifying whether a borrower qualifies 
        for the grace period described in subsection (b);
          ``(6) the manner, content, and form of notifying a consumer 
        reporting agency and private educational loan holder that a 
        borrower was granted a grace period.
  ``(d) Standardized Reporting Codes.--A consumer reporting agency 
shall develop standardized reporting codes for use by any private 
educational loan holder to identify and report a borrower's status of 
making and completing 9 on-time monthly payments during a period of 10 
consecutive months on a delinquent or defaulted private education loan, 
including codes specifying the grace period described in subsection (b) 
and any agreement to modify monthly payments. Such codes shall not 
appear on any report provided to a third party, and shall be removed 
from the consumer's credit report upon the consumer's completion of the 
rehabilitation period under this section.
  ``(e) Elimination of Barriers to Credit Rehabilitation.--A consumer 
report in which a private educational loan holder furnishes the 
standardized reporting codes described in subsection (d) to a consumer 
reporting agency, or in which a consumer reporting agency includes such 
codes, shall be deemed to comply with the requirements for accuracy and 
completeness under sections 623(a)(1) and 630.
  ``(f) Prohibition on Civil Actions for Consumers Pursuing 
Rehabilitation.--A private educational loan holder may not commence or 
proceed with any civil action against a borrower with respect to a 
delinquent or defaulted loan during the period of rehabilitation if the 
private educational loan holder has been notified, in accordance with 
the procedures established by the Bureau pursuant to subsection (c)--
          ``(1) of such borrower's intent to participate in 
        rehabilitation;
          ``(2) that such borrower has satisfied the requirements under 
        subsection (a); or
          ``(3) that such borrower was granted a grace period.
  ``(g) Impact on Statute of Limitations for Prior Debt.--Payments by a 
borrower on a private education loan that are made during and after a 
period of rehabilitation under this section shall have no effect on the 
statute of limitations with respect to payments that were due on such 
private education loan before the beginning of the period of 
rehabilitation.
  ``(h) Payment Plans.--If a private educational loan holder enters 
into a payment plan with a borrower on a private education loan during 
a period of rehabilitation, such payment plan shall be reasonable and 
affordable, as determined by the Bureau.
  ``(i) Rules of Construction.--
          ``(1) Application to subsequent default or delinquency.--A 
        borrower who satisfies the requirements under subsection (a) 
        shall be eligible for additional credit rehabilitation 
        described in subsection (a) with respect to any subsequent 
        default or delinquency of the borrower on the rehabilitated 
        private education loan.
          ``(2) Interruption of consecutive payment period 
        requirement.--The grace period described in subsection 
        (b)(1)(A) shall not apply if any regulation promulgated under 
        section 987 of title 10, United States Code (commonly known as 
        the Military Lending Act), or the Servicemembers Civil Relief 
        Act (50 U.S.C. App. 501 et seq.) allows for a grace period or 
        other interruption of the 10-month period described in 
        subsection (a) and such grace period or other interruption is 
        longer than the period described in subsection (b)(1)(A) or 
        otherwise provides greater protection or benefit to the 
        borrower who is a member of the Armed Forces.''.
  (b) Conforming Amendment.--Section 623(a)(1) of the Fair Credit 
Reporting Act (15 U.S.C. 1681s-2(a)(1)) is amended by striking 
subparagraph (E).
  (c) Table of Contents Amendment.--The table of contents of the Fair 
Credit Reporting Act is amended by inserting after the item relating to 
section 605B the following new item:

``605C. Credit rehabilitation for distressed private education loan 
borrowers.''.

SEC. 4. PRIVATE EDUCATION LOAN DEFINITIONS.

  Section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a) is 
amended by adding at the end the following new subsection:
  ``(bb) Private Education Loan Definitions.--The terms `private 
education loan' and `private educational lender' have the meanings 
given such terms, respectively, in section 140(a) of the Truth in 
Lending Act.''.

SEC. 5. RULEMAKING.

  Except as otherwise provided, the Bureau of Consumer Financial 
Protection shall, not later than the end of the 2-year period beginning 
on the date of the enactment of this Act, issue final rules to 
implement the amendments made by this Act.

                          Purpose and Summary

    On July 5, 2019, Representative Ayanna Pressley introduced 
H.R. 3621, the ``Student Borrower Credit Improvement Act,'' 
which removes adverse credit file information relating to 
defaulted or delinquent private education loans for borrowers 
who demonstrate a history of timely loan repayments for these 
loans. The credit reporting agencies (CRAs) would be required 
to remove delinquent or defaulted private education loan 
information from consumer reports if a borrower makes nine out 
of ten consecutive monthly payments. In addition, the bill 
protects student loan borrowers by ensuring that repayment 
plans be affordable and reasonable, and by protecting the 
statute of limitations on payments even when payments are made 
by a borrower. The bill also permits reasonable interruptions 
in the consecutive repayment periods for those facing unique 
and extenuating life events, such as service members who are 
receiving imminent danger or other special pay duty when 
deployed, and residents in Federally-declared natural disaster 
areas. Furthermore, the bill would address concerns raised 
during the debate on S. 2155 from the 115th Congress, which 
included a provision on rehabilitating private student loans. 
Various stakeholders raised concerns that the provision would 
permit abusive behavior by student loan creditors and debt 
collectors.\1\
---------------------------------------------------------------------------
    \1\Coalition letter available at https://nclc.org/images/pdf/
legislation/house-opp-s2155-2018.pdf.
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                  Background and Need for Legislation

    Our nation's credit reporting system is broken yet has an 
impact on almost every American. Credit scores and credit 
reports are increasingly relied upon by creditors, employers, 
insurers, and even law enforcement. Yet it has been more than 
15 years since Congress enacted comprehensive reform of the 
consumer reporting system,\2\ and there have been numerous 
shortcomings with the current system identified during that 
time that need to be addressed. For example, the Federal Trade 
Commission (FTC) study found in 2012 that one out of every five 
consumers have a verified error on their consumer reports and 5 
percent had errors serious enough to result in them being 
denied credit or paying more for mortgages, auto loans, 
insurance policies, and other financial obligations.\3\ An 
analysis of the Consumer Financial Protection Bureau's (CFPB) 
consumer complaint database revealed that in 2018, credit 
reports were the most complained about financial product, and 
the three major credit bureaus--Equifax, Experian and 
TransUnion--were the most-complained about financial 
companies.\4\ It is critical that Congress act swiftly to 
address these critical flaws and modernize the Fair Credit 
Reporting Act to ensure the credit reporting system works 
better for all Americans.
---------------------------------------------------------------------------
    \2\The Fair and Accurate Credit Transactions Act of 2003 (FACT Act; 
P.L. 108-159), among other things, allows consumers to request and 
obtain a free credit report once a year from each of the three 
nationwide consumer reporting agencies.
    \3\https://www.ftc.gov/sites/default/files/documents/reports/
section-319-fair-and-accurate-credit-transactions-act-2003-fifth-
interim-federal-trade-commission/130211factareport.pdf.
    \4\https://uspirg.org/news/usp/youre-not-alone-cfpb-complaints-
rise.
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    Given increasing tuition costs, those who need loans to pay 
for higher education are increasingly incurring larger student 
loan debts. However, unlike Federal student loans, private 
education lenders do not have to offer borrowers flexible 
repayment options, which has resulted in high defaults and 
delinquencies on these types of loans that, in turn, impair 
many young consumers' credit standing.\5\
---------------------------------------------------------------------------
    \5\Consumer Financial Protection Bureau, Annual report of the CFPB 
Student Loan Ombudsman (2017), available at https://
files.consumerfinance.gov/f/documents/cfpb_annual-report_student-loan-
ombudsman_2017.pdf.
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    According to the CFPB, student loan debt exceeds $1.5 
trillion, which creates a drag on our country's economy by 
hindering borrowers' ability to qualify for mortgage and auto 
loans, pursue entrepreneurial ventures, build wealth, save for 
retirement, and pursue certain careers, including civic-minded 
jobs.\6\ Federal student loan borrowers have some repayment 
options that are not required to be provided to private 
education loan borrowers.\7\ Although some private education 
loan holders may allow student borrowers to postpone payments 
while they are enrolled in school full-time, this period is 
usually capped at 48 or 66 months.\8\ This can create a 
financial paradox for continuing education students, who may 
need additional time to finish an undergraduate degree, and for 
those who want to obtain a graduate degree but cannot afford to 
make loan payments while they are still in school. As such, 
even before some students graduate, their reports may contain 
negative information related to their private education 
loans.\9\
---------------------------------------------------------------------------
    \6\Consumer Financial Protection Bureau, Student Loan 
Affordability: Analysis of Public Input on Impact and Solutions (2013), 
available at https://files.consumerfinance.gov/f/201305_cfpb_rfi-
report_student-loans.pdf.
    \7\United States Department of Education, Federal Student Aid, What 
are the Differences Between Federal and Private Student Loans? 
Available at https://studentaid.ed.gov/sa/types/loans/federal-vs-
private.
    \8\Id.
    \9\Deanne Loonin, The Student Loan Default Trap, Why Borrowers 
Default and What can be Done, National Consumer Law Center (2012), 
available at https://www.studentloanborrowerassistance.org/wp-content/
uploads/File/student-loan-default-trap-report.pdf.
---------------------------------------------------------------------------
    This legislation is supported by more than 80 consumer, 
civil rights, labor, and community organizations.\10\ The 
National Association of Realtors also support this 
legislation.\11\
---------------------------------------------------------------------------
    \10\Supporting organizations include Americans for Financial 
Reform, A2Z Real Estate Consultants, African American Health Alliance, 
Alaska Public Interest Research Group, Allied Progress, Arkansas 
Community Organizations, BREAD Organization, CAFE Montgomery MD, Center 
for Digital Democracy, Cleveland Jobs with Justice, Community Action 
Human Resources Agency (CAHRA), Congregation of Our Lady of the Good 
Shepherd, US Provinces, Connecticut, Fair Housing Center, Consumer 
Action, Consumer Federation of America, Consumer Federation of 
California, Consumer Reports, CWA Local 1081, Delaware Community 
Reinvestment Action Council, Inc., Demos, Denver Area Labor Federation, 
East Bay Community Law Center, FAITH IN TEXAS, Famicos Foundation, 
FLARA, Florida Alliance for Consumer Protection, Greater Longview 
United Way, Groundcover News, Habitat for Humanity of Camp Co, TX, 
Hawaiian Community Assets, Housing Action Illinois, Housing and Family 
Services of Greater New York, Inc., Mary House, Inc., Maryland Consumer 
Rights Coalition, Miami Valley Fair Housing Center, Inc., Mobilization 
for Justice Inc., Montana Organizing Project, Multi-Cultural Real 
Estate Alliance For Urban Change, National Advocacy Center of the 
Sisters of the Good Shepherd, National Association of Consumer 
Advocates, National Association of Social Workers, National Association 
of Social Workers West Virginia Chapter, National Center for Law and 
Economic Justice, National Consumer Law Center (on behalf of its low-
income clients), National Fair Housing Alliance, National Housing Law 
Project, National Housing Resource Center, National Rural Social Work 
Caucus, New Economics for Women, New Jersey Citizen Action, New Jersey 
Tenants Organization, New York Legal Assistance Group, North Carolina 
Council of Churches, Partners In Community Building, Inc., PathWays PA, 
Pennsylvania Council of Churches, People Demanding Action, Progressive 
Leadership Alliance of Nevada, Project IRENE, Prosperity Now, Public 
Citizen, Public Justice Center, Public Law Center, Public Utility Law 
Project of New York, Rocky Mountain Peace and Justice Center, SC 
Appleseed Legal Justice Center, Sisters of Mercy South Central 
Community, Society of St. Vincent de Paul, St. Paul UMC, Tennessee 
Citizen Action, The Center for Survivor Agency and Justice, The 
Disaster Law Project, The Greenlining Institute, The Leadership 
Conference on Civil and Human Rights, THE ONE LESS FOUNDATION, Tzedek 
DC, U.S. PIRG, Urban Asset Builders, Inc., Virginia Citizens Consumer 
Council, Virginia Poverty Law Center, West Virginia Center on Budget 
and Policy, Wildfire, Woodstock Institute, and WV Citizen Action Group. 
See http://ourfinancialsecurity.org/2019/07/news-release-afr-statement-
financial-services-committee-markup-credit-reporting/.
    \11\National Association of Realtors letter, available at https://
narfocus.com/billdatabase/clientfiles/172/2/3417.pdf.
---------------------------------------------------------------------------
    This legislation is substantially similar to Title III of 
the discussion draft of Chairwoman Maxine Waters' legislation, 
the ``Comprehensive Consumer Credit Reporting Reform Act of 
2019,'' which was considered at a full committee hearing on 
February 26, 2019 and was introduced in previous 
congresses.\12\
---------------------------------------------------------------------------
    \12\Financial Services Committee Hearing: Who's Keeping Score? 
Holding Credit Bureaus Accountable and Repairing a Broken System 
(2019). Hearing information available at https://
financialservices.house.gov/calendar/eventsingle.aspx?EventID=402343. 
Also see H.R. 5282 (114th Congress), the Comprehensive Consumer Credit 
Reporting Reform Act of 2016, introduced by Rep. Waters on May 19, 
2016, and H.R. 3755 (115th Congress), the Comprehensive Consumer Credit 
Reporting Reform Act of 2017, introduced by Rep. Waters on September 
13, 2017, available with additional materials at https://
financialservices.house.gov/news/documentsingle.aspx?DocumentID=400788.
---------------------------------------------------------------------------

                      Section-by-Section Analysis


Section 1. Title

    This section provides that H.R. 3621 may be cited as the 
``Student Borrower Credit Improvement Act.''

Section 2. Congressional findings

    This section highlights a report from the Consumer 
Financial Protection Bureau explaining the problems and 
challenges with private student loan repayment plans and the 
consequences that young people and others face when they fall 
behind or default on these loans.

Section 3. Removes adverse information for certain defaulted or 
        delinquent private education loan borrowers who demonstrate a 
        history of loan repayment

    This section creates a new section, ``605C'' of the Fair 
Credit Reporting Act.
    The new section 605C prevents consumer reporting agencies 
from furnishing any consumer reports containing any adverse 
information related to a consumer's delinquent or defaulted 
private education loan, if the borrower has made nine on-time 
consecutive monthly payments. This section also creates a 
provision of reasonable interruptions in the consecutive 
repayment period permitting borrowers to miss payments when 
facing unique and extenuating life events, such as service 
members who are receiving imminent danger or other special pay 
duty when deployed, and residents in Federally-declared natural 
disaster areas.

Section 4. Private education loan definitions

    This section amends section 603 of the Fair Credit 
Reporting Act by defining ``private student loan'' and 
``private educational lender''.

Section 5. General Bureau Rulemaking

    This section directs the Consumer Financial Protection 
Bureau to issue final rules implementing this Act within two 
years of the enactment of H.R. 3621.

                                Hearings

    For the purposes of section 103(i) of H. Res. 6 for the 
116th Congress--
    (1) The Committee on Financial Services held a hearing, 
entitled ``Who's Keeping Score? Holding Credit Bureaus 
Accountable and Repairing a Broken System'' to consider the 
``Comprehensive Consumer Credit Reporting Reform Act of 2019'' 
(Title III of the discussion draft is substantially similar to 
H.R. 3621) on February 26, 2019. The two-panel hearing 
consisted of first the three CEOs of the three largest Credit 
Reporting Agencies: Equifax, TransUnion, and Experian. 
Witnesses on the second panel included representatives from the 
National Fair Housing Alliance, the National Consumer Law 
Center, UnidosUS, U.S. Public Interest Research Group (PIRG), 
and a Paul Hastings partner and attorney. The hearing allowed 
Members of the Financial Services Committee to hear from 
witnesses about the continuing challenges modernizing the Fair 
Credit Reporting Act to better protect consumers and their 
data, as well as other legislation to help overcome those 
challenges.
    (2) In addition, during the 115th Congress, the Financial 
Services Committee held a two-part hearing on the Equifax data 
breach and related credit reporting and consumer data 
protection issues. The first part of the hearing entitled 
``Examining the Equifax Data Breach'' took place on October 5, 
2017 and featured the former Chairman and CEO to Equifax. The 
Committee also held a Minority Day hearing, which was a 
continuation of the hearing entitled, ``Examining the Equifax 
Data Breach'' and took place on October 25, 2017. Witnesses 
included representatives from the Consumer Financial Protection 
Bureau, the National Consumer Law Center, Georgetown University 
Law Center, and the Office of the New York State Attorney 
General.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
July 16, 2019, and ordered H.R. 3621 to be reported favorably 
to the House with an amendment in the nature of a substitute by 
a vote of 32 yeas and 26 nays, a quorum being present.

                  Committee Votes and Roll Call Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
following roll call votes occurred during the Committee's 
consideration of H.R. 3621:


              [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee's oversight findings and recommendations are 
reflected in the descriptive portions of this report.

             Statement of Performance Goals and Objectives

    Pursuant to clause (3)(c) of rule XIII of the Rules of the 
House of Representatives, the goals of H.R. 3621 are to 
increase resources for private student loan holders to repay 
their loans and increase their credit scores.

                 New Budget Authority and CBO Estimate

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a) of the 
Congressional Budget Act of 1974, and pursuant to clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 402 of the Congressional Budget Act 
of 1974, the Committee has received the following estimate for 
H.R. 3621 from the Director of the Congressional Budget Office:
                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, December 5, 2019.
Hon. Maxine Waters,
Chairwoman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Madam Chairwoman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3621, the Student 
Borrower Credit Improvement Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is David Hughes.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.
 
 
              [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    


    H.R. 3621 would require the Consumer Financial Protection 
Agency (CFPB) to establish procedures by which borrowers could 
rehabilitate their credit if they are delinquent or have 
defaulted on a private-sector education loan. Under the bill, 
if a borrower makes at least 9 of 10 consecutive monthly 
payments on time, after the date of the delinquency or default, 
consumer reporting agencies (CRAs) could not include adverse 
information related to that delinquency or default in a 
consumer report. Payments during the 10-month period could be 
interrupted and resumed without consequences for members of the 
U.S. Armed Forces on assignment, people residing in areas 
affected by disaster, and people demonstrating hardship. 
Finally, H.R. 3621 would require the CFPB to issue rules that 
regulate payment plans between private education lenders and 
borrowers during credit rehabilitation periods.
    Using information from the CFPB, CBO expects that issuing 
rules and establishing procedures under the bill would require 
the work of 13 agency employees for one year at an average cost 
of $200,000 each. On that basis, CBO estimates that enacting 
H.R. 3621 would increase direct spending by $3 million over the 
2020-2021 period. (The CFPB has permanent authority, not 
subject to annual appropriation, to spend amounts transferred 
from the Federal Reserve.)
    H.R. 3621 would impose private-sector mandates as defined 
in the Unfunded Mandates Reform Act (UMRA). CBO cannot 
determine whether the aggregate cost of those mandates would 
exceed the private-sector threshold established in UMRA ($164 
million in 2019, adjusted annually for inflation).
    The bill would require CRAs to remove delinquency or 
default information related to private education loans from 
credit reports of borrowers who have completed the specified 
credit rehabilitation process. H.R. 3621 also would require 
CRAs to develop a standard reporting code for private lenders 
to identify borrowers pursuing such credit rehabilitation. 
Using information from industry sources, CBO estimates the cost 
of complying with those requirements would be small.
    H.R. 3621 would impose an additional mandate by removing a 
private right of action by limiting the right of lenders of 
private education loans to file civil lawsuits against certain 
borrowers. The cost of the mandate would be the forgone net 
value of awards and settlements that would have been granted 
for such claims in the absence of the bill. Because H.R. 3621 
allows CFPB to exempt borrowers from lawsuits on an individual 
basis, CBO has no basis on which to estimate the number of 
possible lawsuits precluded by the bill. Nor can we predict the 
amount of potential forgone settlements. Therefore, CBO cannot 
estimate the cost of the mandate.
    The bill contains no intergovernmental mandates as defined 
in UMRA.
    The CBO staff contacts for this estimate are David Hughes 
(for federal costs) and Rachel Austin (for mandates). The 
estimate was reviewed by H. Samuel Papenfuss, Deputy Assistant 
Director for Budget Analysis.

                        Committee Cost Estimate

    Clause 3(d)(1) of Rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison of the 
costs that would be incurred in carrying out H.R. 3621. 
However, clause 3(d)(2)(B) of that rule provides that this 
requirement does not apply when the committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 402 of the Congressional Budget Act.

                       Unfunded Mandate Statement

    Pursuant to Section 423 of the Congressional Budget and 
Impoundment Control Act (as amended by Section 101(a)(2) of the 
Unfunded Mandates Reform Act, Pub. L. 104-4), the Committee 
adopts as its own the estimate of federal mandates regarding 
H.R. 3621, as amended, prepared by the Director of the 
Congressional Budget Office.

                           Advisory Committee

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                        COMMITTEE CORRESPONDENCE


              Application of Law to the Legislative Branch

    H.R. 3621 does not apply to terms and conditions of 
employment or to access to public services or accommodations 
within the legislative branch.

                           Earmark Statement

    In accordance with clause 9 of rule XXI of the Rules of the 
House of Representatives, H.R. does not contain any 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as described in clauses 9(e), 9(f), and 9(g) of rule 
XXI.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee states that no 
provision of H.R. 3621 establishes or reauthorizes a program of 
the Federal Government known to be duplicative of another 
federal program, a program that was included in any report from 
the Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

          Changes in Existing Law Made by the Bill as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, H.R. 3621, as reported, are shown as follows:

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                       FAIR CREDIT REPORTING ACT




           *       *       *       *       *       *       *
                  TITLE VI--CONSUMER CREDIT REPORTING

Sec.
601. Short title.
     * * * * * * *
Sec. 605C. Credit rehabilitation for distressed private education loan 
          borrowers.

           *       *       *       *       *       *       *


Sec. 603. Definitions and rules of construction

  (a) Definitions and rules of construction set forth in this 
section are applicable for the purposes of this title.
  (b) The term ``person'' means any individual, partnership, 
corporation, trust, estate, cooperative, association, 
government or governmental subdivision or agency, or other 
entity.
  (c) The term ``consumer'' means an individual.
  (d) Consumer Report.--
          (1) In general.--The term ``consumer report'' means 
        any written, oral, or other communication of any 
        information by a consumer reporting agency bearing on a 
        consumer's credit worthiness, credit standing, credit 
        capacity, character, general reputation, personal 
        characteristics, or mode of living which is used or 
        expected to be used or collected in whole or in part 
        for the purpose of serving as a factor in establishing 
        the consumer's eligibility for--
                  (A) credit or insurance to be used primarily 
                for personal, family, or household purposes;
                  (B) employment purposes; or
                  (C) any other purpose authorized under 
                section 604.
          (2) Exclusions.--Except as provided in paragraph (3), 
        the term ``consumer report'' does not include--
                  (A) subject to section 624, any--
                          (i) report containing information 
                        solely as to transactions or 
                        experiences between the consumer and 
                        the person making the report;
                          (ii) communication of that 
                        information among persons related by 
                        common ownership or affiliated by 
                        corporate control; or
                          (iii) communication of other 
                        information among persons related by 
                        common ownership or affiliated by 
                        corporate control, if it is clearly and 
                        conspicuously disclosed to the consumer 
                        that the information may be 
                        communicated among such persons and the 
                        consumer is given the opportunity, 
                        before the time that the information is 
                        initially communicated, to direct that 
                        such information not be communicated 
                        among such persons;
                  (B) any authorization or approval of a 
                specific extension of credit directly or 
                indirectly by the issuer of a credit card or 
                similar device;
                  (C) any report in which a person who has been 
                requested by a third party to make a specific 
                extension of credit directly or indirectly to a 
                consumer conveys his or her decision with 
                respect to such request, if the third party 
                advises the consumer of the name and address of 
                the person to whom the request was made, and 
                such person makes the disclosures to the 
                consumer required under section 615; or
                  (D) a communication described in subsection 
                (o) or (x).
          (3) Restriction on sharing of medical information.--
        Except for information or any communication of 
        information disclosed as provided in section 604(g)(3), 
        the exclusions in paragraph (2) shall not apply with 
        respect to information disclosed to any person related 
        by common ownership or affiliated by corporate control, 
        if the information is--
                  (A) medical information;
                  (B) an individualized list or description 
                based on the payment transactions of the 
                consumer for medical products or services; or
                  (C) an aggregate list of identified consumers 
                based on payment transactions for medical 
                products or services.
  (e) The term ``investigative consumer report'' means a 
consumer report or portion thereof in which information on a 
consumer's character, general reputation, personal 
characteristics, or mode of living is obtained through personal 
interviews with neighbors, friends, or associates of the 
consumer reported on or with others with whom he is acquainted 
or who may have knowledge concerning any such items of 
information. However, such information shall not include 
specific factual information on a consumer's credit record 
obtained directly from a creditor of the consumer or from a 
consumer reporting agency when such information was obtained 
directly from a creditor of the consumer or from the consumer.
  (f) The term ``consumer reporting agency'' means any person 
which, for monetary fees, dues, or on a cooperative nonprofit 
basis, regularly engages in whole or in part in the practice of 
assembling or evaluating consumer credit information or other 
information on consumers for the purpose of furnishing consumer 
reports to third parties, and which uses any means or facility 
of interstate commerce for the purpose of preparing or 
furnishing consumer reports.
  (g) The term ``file'', when used in connection with 
information on any consumer, means all of the information on 
that consumer recorded and retained by a consumer reporting 
agency regardless of how the information is stored.
  (h) The term ``employment purposes'' when used in connection 
with a consumer report means a report used for the purpose of 
evaluating a consumer for employment, promotion, reassignment 
or retention as an employee.
  (i) Medical Information.--The term ``medical information''--
          (1) means information or data, whether oral or 
        recorded, in any form or medium, created by or derived 
        from a health care provider or the consumer, that 
        relates to--
                  (A) the past, present, or future physical, 
                mental, or behavioral health or condition of an 
                individual;
                  (B) the provision of health care to an 
                individual; or
                  (C) the payment for the provision of health 
                care to an individual.
          (2) does not include the age or gender of a consumer, 
        demographic information about the consumer, including a 
        consumer's residence address or e-mail address, or any 
        other information about a consumer that does not relate 
        to the physical, mental, or behavioral health or 
        condition of a consumer, including the existence or 
        value of any insurance policy.
  (j) Definitions Relating to Child Support Obligations.--
          (1) Overdue support.--The term ``overdue support'' 
        has the meaning given to such term in section 466(e) of 
        the Social Security Act.
          (2) State or local child support enforcement 
        agency.--The term ``State or local child support 
        enforcement agency'' means a State or local agency 
        which administers a State or local program for 
        establishing and enforcing child support obligations.
  (k) Adverse Action.--
          (1) Actions included.--The term ``adverse action''--
                  (A) has the same meaning as in section 
                701(d)(6) of the Equal Credit Opportunity Act; 
                and
                  (B) means--
                          (i) a denial or cancellation of, an 
                        increase in any charge for, or a 
                        reduction or other adverse or 
                        unfavorable change in the terms of 
                        coverage or amount of, any insurance, 
                        existing or applied for, in connection 
                        with the underwriting of insurance;
                          (ii) a denial of employment or any 
                        other decision for employment purposes 
                        that adversely affects any current or 
                        prospective employee;
                          (iii) a denial or cancellation of, an 
                        increase in any charge for, or any 
                        other adverse or unfavorable change in 
                        the terms of, any license or benefit 
                        described in section 604(a)(3)(D); and
                          (iv) an action taken or determination 
                        that is--
                                  (I) made in connection with 
                                an application that was made 
                                by, or a transaction that was 
                                initiated by, any consumer, or 
                                in connection with a review of 
                                an account under section 
                                604(a)(3)(F)(ii); and
                                  (II) adverse to the interests 
                                of the consumer.
          (2) Applicable findings, decisions, commentary, and 
        orders.--For purposes of any determination of whether 
        an action is an adverse action under paragraph (1)(A), 
        all appropriate final findings, decisions, commentary, 
        and orders issued under section 701(d)(6) of the Equal 
        Credit Opportunity Act by the Bureau or any court shall 
        apply.
  (l) Firm Offer of Credit or Insurance.--The term ``firm offer 
of credit or insurance'' means any offer of credit or insurance 
to a consumer that will be honored if the consumer is 
determined, based on information in a consumer report on the 
consumer, to meet the specific criteria used to select the 
consumer for the offer, except that the offer may be further 
conditioned on one or more of the following:
          (1) The consumer being determined, based on 
        information in the consumer's application for the 
        credit or insurance, to meet specific criteria bearing 
        on credit worthiness or insurability, as applicable, 
        that are established--
                  (A) before selection of the consumer for the 
                offer; and
                  (B) for the purpose of determining whether to 
                extend credit or insurance pursuant to the 
                offer.
          (2) Verification--
                  (A) that the consumer continues to meet the 
                specific criteria used to select the consumer 
                for the offer, by using information in a 
                consumer report on the consumer, information in 
                the consumer's application for the credit or 
                insurance, or other information bearing on the 
                credit worthiness or insurability of the 
                consumer; or
                  (B) of the information in the consumer's 
                application for the credit or insurance, to 
                determine that the consumer meets the specific 
                criteria bearing on credit worthiness or 
                insurability.
          (3) The consumer furnishing any collateral that is a 
        requirement for the extension of the credit or 
        insurance that was--
                  (A) established before selection of the 
                consumer for the offer of credit or insurance; 
                and
                  (B) disclosed to the consumer in the offer of 
                credit or insurance.
  (m) Credit or Insurance Transaction That Is Not Initiated by 
the Consumer.--The term ``credit or insurance transaction that 
is not initiated by the consumer'' does not include the use of 
a consumer report by a person with which the consumer has an 
account or insurance policy, for purposes of--
          (1) reviewing the account or insurance policy; or
          (2) collecting the account.
  (n) State.--The term ``State'' means any State, the 
Commonwealth of Puerto Rico, the District of Columbia, and any 
territory or possession of the United States.
  (o) Excluded Communications.--A communication is described in 
this subsection if it is a communication--
          (1) that, but for subsection (d)(2)(D), would be an 
        investigative consumer report;
          (2) that is made to a prospective employer for the 
        purpose of--
                  (A) procuring an employee for the employer; 
                or
                  (B) procuring an opportunity for a natural 
                person to work for the employer;
          (3) that is made by a person who regularly performs 
        such procurement;
          (4) that is not used by any person for any purpose 
        other than a purpose described in subparagraph (A) or 
        (B) of paragraph (2); and
          (5) with respect to which--
                  (A) the consumer who is the subject of the 
                communication--
                          (i) consents orally or in writing to 
                        the nature and scope of the 
                        communication, before the collection of 
                        any information for the purpose of 
                        making the communication;
                          (ii) consents orally or in writing to 
                        the making of the communication to a 
                        prospective employer, before the making 
                        of the communication; and
                          (iii) in the case of consent under 
                        clause (i) or (ii) given orally, is 
                        provided written confirmation of that 
                        consent by the person making the 
                        communication, not later than 3 
                        business days after the receipt of the 
                        consent by that person;
                  (B) the person who makes the communication 
                does not, for the purpose of making the 
                communication, make any inquiry that if made by 
                a prospective employer of the consumer who is 
                the subject of the communication would violate 
                any applicable Federal or State equal 
                employment opportunity law or regulation; and
                  (C) the person who makes the communication--
                          (i) discloses in writing to the 
                        consumer who is the subject of the 
                        communication, not later than 5 
                        business days after receiving any 
                        request from the consumer for such 
                        disclosure, the nature and substance of 
                        all information in the consumer's file 
                        at the time of the request, except that 
                        the sources of any information that is 
                        acquired solely for use in making the 
                        communication and is actually used for 
                        no other purpose, need not be disclosed 
                        other than under appropriate discovery 
                        procedures in any court of competent 
                        jurisdiction in which an action is 
                        brought; and
                          (ii) notifies the consumer who is the 
                        subject of the communication, in 
                        writing, of the consumer's right to 
                        request the information described in 
                        clause (i).
  (p) Consumer Reporting Agency That Compiles and Maintains 
Files on Consumers on a Nationwide Basis.--The term ``consumer 
reporting agency that compiles and maintains files on consumers 
on a nationwide basis'' means a consumer reporting agency that 
regularly engages in the practice of assembling or evaluating, 
and maintaining, for the purpose of furnishing consumer reports 
to third parties bearing on a consumer's credit worthiness, 
credit standing, or credit capacity, each of the following 
regarding consumers residing nationwide:
          (1) Public record information.
          (2) Credit account information from persons who 
        furnish that information regularly and in the ordinary 
        course of business.
  (q) Definitions Relating to Fraud Alerts.--
          (1) Active duty military consumer.--The term ``active 
        duty military consumer'' means a consumer in military 
        service who--
                  (A) is on active duty (as defined in section 
                101(d)(1) of title 10, United States Code) or 
                is a reservist performing duty under a call or 
                order to active duty under a provision of law 
                referred to in section 101(a)(13) of title 10, 
                United States Code; and
                  (B) is assigned to service away from the 
                usual duty station of the consumer.
          (2) Fraud alert; active duty alert.--The terms 
        ``fraud alert'' and ``active duty alert'' mean a 
        statement in the file of a consumer that--
                  (A) notifies all prospective users of a 
                consumer report relating to the consumer that 
                the consumer may be a victim of fraud, 
                including identity theft, or is an active duty 
                military consumer, as applicable; and
                  (B) is presented in a manner that facilitates 
                a clear and conspicuous view of the statement 
                described in subparagraph (A) by any person 
                requesting such consumer report.
          (3) Identity theft.--The term ``identity theft'' 
        means a fraud committed using the identifying 
        information of another person, subject to such further 
        definition as the Bureau may prescribe, by regulation.
          (4) Identity theft report.--The term ``identity theft 
        report'' has the meaning given that term by rule of the 
        Bureau, and means, at a minimum, a report--
                  (A) that alleges an identity theft;
                  (B) that is a copy of an official, valid 
                report filed by a consumer with an appropriate 
                Federal, State, or local law enforcement 
                agency, including the United States Postal 
                Inspection Service, or such other government 
                agency deemed appropriate by the Bureau; and
                  (C) the filing of which subjects the person 
                filing the report to criminal penalties 
                relating to the filing of false information if, 
                in fact, the information in the report is 
                false.
          (5) New credit plan.--The term ``new credit plan'' 
        means a new account under an open end credit plan (as 
        defined in section 103(i) of the Truth in Lending Act) 
        or a new credit transaction not under an open end 
        credit plan.
  (r) Credit and Debit Related Terms--
          (1) Card issuer.--The term ``card issuer'' means--
                  (A) a credit card issuer, in the case of a 
                credit card; and
                  (B) a debit card issuer, in the case of a 
                debit card.
          (2) Credit card.--The term ``credit card'' has the 
        same meaning as in section 103 of the Truth in Lending 
        Act.
          (3) Debit card.--The term ``debit card'' means any 
        card issued by a financial institution to a consumer 
        for use in initiating an electronic fund transfer from 
        the account of the consumer at such financial 
        institution, for the purpose of transferring money 
        between accounts or obtaining money, property, labor, 
        or services.
          (4) Account and electronic fund transfer.--The terms 
        ``account'' and ``electronic fund transfer'' have the 
        same meanings as in section 903 of the Electronic Fund 
        Transfer Act.
          (5) Credit and creditor.--The terms ``credit'' and 
        ``creditor'' have the same meanings as in section 702 
        of the Equal Credit Opportunity Act.
  (s) Federal Banking Agency.--The term ``Federal banking 
agency'' has the same meaning as in section 3 of the Federal 
Deposit Insurance Act.
  (t) Financial Institution.--The term ``financial 
institution'' means a State or National bank, a State or 
Federal savings and loan association, a mutual savings bank, a 
State or Federal credit union, or any other person that, 
directly or indirectly, holds a transaction account (as defined 
in section 19(b) of the Federal Reserve Act) belonging to a 
consumer.
  (u) Reseller.--The term ``reseller'' means a consumer 
reporting agency that--
          (1) assembles and merges information contained in the 
        database of another consumer reporting agency or 
        multiple consumer reporting agencies concerning any 
        consumer for purposes of furnishing such information to 
        any third party, to the extent of such activities; and
          (2) does not maintain a database of the assembled or 
        merged information from which new consumer reports are 
        produced.
  (v) Commission.--The term ``Commission'' means the Bureau.
  (w) The term ``Bureau'' means the Bureau of Consumer 
Financial Protection.
  (x) Nationwide Specialty Consumer Reporting Agency.--The term 
``nationwide specialty consumer reporting agency'' means a 
consumer reporting agency that compiles and maintains files on 
consumers on a nationwide basis relating to--
          (1) medical records or payments;
          (2) residential or tenant history;
          (3) check writing history;
          (4) employment history; or
          (5) insurance claims.
  (y) Exclusion of Certain Communications for Employee 
Investigations.--
          (1) Communications described in this subsection.--A 
        communication is described in this subsection if--
                  (A) but for subsection (d)(2)(D), the 
                communication would be a consumer report;
                  (B) the communication is made to an employer 
                in connection with an investigation of--
                          (i) suspected misconduct relating to 
                        employment; or
                          (ii) compliance with Federal, State, 
                        or local laws and regulations, the 
                        rules of a self-regulatory 
                        organization, or any preexisting 
                        written policies of the employer;
                  (C) the communication is not made for the 
                purpose of investigating a consumer's credit 
                worthiness, credit standing, or credit 
                capacity; and
                  (D) the communication is not provided to any 
                person except--
                          (i) to the employer or an agent of 
                        the employer;
                          (ii) to any Federal or State officer, 
                        agency, or department, or any officer, 
                        agency, or department of a unit of 
                        general local government;
                          (iii) to any self-regulatory 
                        organization with regulatory authority 
                        over the activities of the employer or 
                        employee;
                          (iv) as otherwise required by law; or
                          (v) pursuant to section 608.
          (2) Subsequent disclosure.--After taking any adverse 
        action based in whole or in part on a communication 
        described in paragraph (1), the employer shall disclose 
        to the consumer a summary containing the nature and 
        substance of the communication upon which the adverse 
        action is based, except that the sources of information 
        acquired solely for use in preparing what would be but 
        for subsection (d)(2)(D) an investigative consumer 
        report need not be disclosed.
          (3) Self-regulatory organization defined.--For 
        purposes of this subsection, the term ``self-regulatory 
        organization'' includes any self-regulatory 
        organization (as defined in section 3(a)(26) of the 
        Securities Exchange Act of 1934), any entity 
        established under title I of the Sarbanes-Oxley Act of 
        2002, any board of trade designated by the Commodity 
        Futures Trading Commission, and any futures association 
        registered with such Commission.
  (z) Veteran.--The term ``veteran'' has the meaning given the 
term in section 101 of title 38, United States Code.
  (aa) Veteran's Medical Debt.--The term ``veteran's medical 
debt''--
          (1) means a medical collection debt of a veteran owed 
        to a non-Department of Veterans Affairs health care 
        provider that was submitted to the Department for 
        payment for health care authorized by the Department of 
        Veterans Affairs; and
          (2) includes medical collection debt that the 
        Department of Veterans Affairs has wrongfully charged a 
        veteran.
  (bb) Private Education Loan Definitions.--The terms ``private 
education loan'' and ``private educational lender'' have the 
meanings given such terms, respectively, in section 140(a) of 
the Truth in Lending Act.

           *       *       *       *       *       *       *


Sec. 605C. Credit rehabilitation for distressed private education loan 
                    borrowers.

  (a) In General.--A consumer reporting agency may not furnish 
any consumer report containing any adverse item of information 
relating to a delinquent or defaulted private education loan of 
a borrower if the borrower has rehabilitated the borrower's 
credit with respect to such loan by making 9 on-time monthly 
payments (in accordance with the terms and conditions of the 
borrower's original loan agreement or any other repayment 
agreement that antedates the original agreement) during a 
period of 10 consecutive months on such loan after the date on 
which the delinquency or default occurred.
  (b) Interruption of 10-Month Period for Certain Consumers.--
          (1) Permissible interruption of the 10-month 
        period.--A borrower may stop making consecutive monthly 
        payments and be granted a grace period after which the 
        10-month period described in subsection (a) shall 
        resume. Such grace period shall be provided under the 
        following circumstances:
                  (A) With respect to a borrower who is a 
                member of the Armed Forces entitled to 
                incentive pay for the performance of hazardous 
                duty under section 301 of title 37, United 
                States Code, hazardous duty pay under section 
                351 of such title, or other assignment or 
                special duty pay under section 352 of such 
                title, the grace period shall begin on the date 
                on which the borrower begins such assignment or 
                duty and end on the date that is 6 months after 
                the completion of such assignment or duty.
                  (B) With respect to a borrower who resides in 
                an area affected by a major disaster or 
                emergency declared under the Robert T. Stafford 
                Disaster Relief and Emergency Assistance Act, 
                the grace period shall begin on the date on 
                which the major disaster or emergency was 
                declared and end on the date that is 3 months 
                after such date.
          (2) Other circumstances.--
                  (A) In general.--The Bureau may allow a 
                borrower demonstrating hardship to stop making 
                consecutive monthly payments and be granted a 
                grace period after which the 10-month period 
                described in subsection (a) shall resume.
                  (B) Borrower demonstrating hardship 
                defined.--In this paragraph, the term 
                ``borrower demonstrating hardship'' means a 
                borrower or a class of borrowers who, as 
                determined by the Bureau, is facing or has 
                experienced unusual extenuating life 
                circumstances or events that result in severe 
                financial or personal barriers such that the 
                borrower or class of borrowers does not have 
                the capacity to comply with the requirements of 
                subsection (a).
  (c) Procedures.--The Bureau shall establish procedures to 
implement the credit rehabilitation described in this section, 
including--
          (1) the manner, content, and form for requesting 
        credit rehabilitation;
          (2) the method for validating that the borrower is 
        satisfying the requirements of subsection (a);
          (3) the manner, content, and form for notifying the 
        private educational loan holder of--
                  (A) the borrower's participation in credit 
                rehabilitation under subsection (a);
                  (B) the requirements described in subsection 
                (d); and
                  (C) the restrictions described in subsection 
                (f);
          (4) the manner, content, and form for notifying a 
        consumer reporting agency of--
                  (A) the borrower's participation in credit 
                rehabilitation under subsection (a); and
                  (B) the requirements described in subsection 
                (d);
          (5) the method for verifying whether a borrower 
        qualifies for the grace period described in subsection 
        (b);
          (6) the manner, content, and form of notifying a 
        consumer reporting agency and private educational loan 
        holder that a borrower was granted a grace period.
  (d) Standardized Reporting Codes.--A consumer reporting 
agency shall develop standardized reporting codes for use by 
any private educational loan holder to identify and report a 
borrower's status of making and completing 9 on-time monthly 
payments during a period of 10 consecutive months on a 
delinquent or defaulted private education loan, including codes 
specifying the grace period described in subsection (b) and any 
agreement to modify monthly payments. Such codes shall not 
appear on any report provided to a third party, and shall be 
removed from the consumer's credit report upon the consumer's 
completion of the rehabilitation period under this section.
  (e) Elimination of Barriers to Credit Rehabilitation.--A 
consumer report in which a private educational loan holder 
furnishes the standardized reporting codes described in 
subsection (d) to a consumer reporting agency, or in which a 
consumer reporting agency includes such codes, shall be deemed 
to comply with the requirements for accuracy and completeness 
under sections 623(a)(1) and 630.
  (f) Prohibition on Civil Actions for Consumers Pursuing 
Rehabilitation.--A private educational loan holder may not 
commence or proceed with any civil action against a borrower 
with respect to a delinquent or defaulted loan during the 
period of rehabilitation if the private educational loan holder 
has been notified, in accordance with the procedures 
established by the Bureau pursuant to subsection (c)--
          (1) of such borrower's intent to participate in 
        rehabilitation;
          (2) that such borrower has satisfied the requirements 
        under subsection (a); or
          (3) that such borrower was granted a grace period.
  (g) Impact on Statute of Limitations for Prior Debt.--
Payments by a borrower on a private education loan that are 
made during and after a period of rehabilitation under this 
section shall have no effect on the statute of limitations with 
respect to payments that were due on such private education 
loan before the beginning of the period of rehabilitation.
  (h) Payment Plans.--If a private educational loan holder 
enters into a payment plan with a borrower on a private 
education loan during a period of rehabilitation, such payment 
plan shall be reasonable and affordable, as determined by the 
Bureau.
  (i) Rules of Construction.--
          (1) Application to subsequent default or 
        delinquency.--A borrower who satisfies the requirements 
        under subsection (a) shall be eligible for additional 
        credit rehabilitation described in subsection (a) with 
        respect to any subsequent default or delinquency of the 
        borrower on the rehabilitated private education loan.
          (2) Interruption of consecutive payment period 
        requirement.--The grace period described in subsection 
        (b)(1)(A) shall not apply if any regulation promulgated 
        under section 987 of title 10, United States Code 
        (commonly known as the Military Lending Act), or the 
        Servicemembers Civil Relief Act (50 U.S.C. App. 501 et 
        seq.) allows for a grace period or other interruption 
        of the 10-month period described in subsection (a) and 
        such grace period or other interruption is longer than 
        the period described in subsection (b)(1)(A) or 
        otherwise provides greater protection or benefit to the 
        borrower who is a member of the Armed Forces.

           *       *       *       *       *       *       *


SEC. 623. RESPONSIBILITIES OF FURNISHERS OF INFORMATION TO CONSUMER 
                    REPORTING AGENCIES.

  (a) Duty of Furnishers of Information To Provide Accurate 
Information.--
          (1) Prohibition.--
                  (A) Reporting information with actual 
                knowledge of errors.--A person shall not 
                furnish any information relating to a consumer 
                to any consumer reporting agency if the person 
                knows or has reasonable cause to believe that 
                the information is inaccurate.
                  (B) Reporting information after notice and 
                confirmation of errors.--A person shall not 
                furnish information relating to a consumer to 
                any consumer reporting agency if--
                          (i) the person has been notified by 
                        the consumer, at the address specified 
                        by the person for such notices, that 
                        specific information is inaccurate; and
                          (ii) the information is, in fact, 
                        inaccurate.
                  (C) No address requirement.--A person who 
                clearly and conspicuously specifies to the 
                consumer an address for notices referred to in 
                subparagraph (B) shall not be subject to 
                subparagraph (A); however, nothing in 
                subparagraph (B) shall require a person to 
                specify such an address.
                  (D) Definition.--For purposes of subparagraph 
                (A), the term ``reasonable cause to believe 
                that the information is inaccurate'' means 
                having specific knowledge, other than solely 
                allegations by the consumer, that would cause a 
                reasonable person to have substantial doubts 
                about the accuracy of the information.
                  [(E) Rehabilitation of private education 
                loans.--
                          [(i) In general.--Notwithstanding any 
                        other provision of this section, a 
                        consumer may request a financial 
                        institution to remove from a consumer 
                        report a reported default regarding a 
                        private education loan, and such 
                        information shall not be considered 
                        inaccurate, if--
                                  [(I) the financial 
                                institution chooses to offer a 
                                loan rehabilitation program 
                                which includes, without 
                                limitation, a requirement of 
                                the consumer to make 
                                consecutive on-time monthly 
                                payments in a number that 
                                demonstrates, in the assessment 
                                of the financial institution 
                                offering the loan 
                                rehabilitation program, a 
                                renewed ability and willingness 
                                to repay the loan; and
                                  [(II) the requirements of the 
                                loan rehabilitation program 
                                described in subclause (I) are 
                                successfully met.
                          [(ii) Banking agencies.--
                                  [(I) In general.--If a 
                                financial institution is 
                                supervised by a Federal banking 
                                agency, the financial 
                                institution shall seek written 
                                approval concerning the terms 
                                and conditions of the loan 
                                rehabilitation program 
                                described in clause (i) from 
                                the appropriate Federal banking 
                                agency.
                                  [(II) Feedback.--An 
                                appropriate Federal banking 
                                agency shall provide feedback 
                                to a financial institution 
                                within 120 days of a request 
                                for approval under subclause 
                                (I).
                          [(iii) Limitation.--
                                  [(I) In general.--A consumer 
                                may obtain the benefits 
                                available under this subsection 
                                with respect to rehabilitating 
                                a loan only 1 time per loan.
                                  [(II) Rule of construction.--
                                Nothing in this subparagraph 
                                may be construed to require a 
                                financial institution to offer 
                                a loan rehabilitation program 
                                or to remove any reported 
                                default from a consumer report 
                                as a consideration of a loan 
                                rehabilitation program, except 
                                as described in clause (i).
                          [(iv) Definitions.--For purposes of 
                        this subparagraph--
                                  [(I) the term ``appropriate 
                                Federal banking agency'' has 
                                the meaning given the term in 
                                section 3 of the Federal 
                                Deposit Insurance Act (12 
                                U.S.C. 1813); and
                                  [(II) the term ``private 
                                education loan'' has the 
                                meaning given the term in 
                                section 140(a) of the Truth in 
                                Lending Act (15 U.S.C. 
                                1650(a)).]
          (2) Duty to correct and update information.--A person 
        who--
                  (A) regularly and in the ordinary course of 
                business furnishes information to one or more 
                consumer reporting agencies about the person's 
                transactions or experiences with any consumer; 
                and
                  (B) has furnished to a consumer reporting 
                agency information that the person determines 
                is not complete or accurate,
        shall promptly notify the consumer reporting agency of 
        that determination and provide to the agency any 
        corrections to that information, or any additional 
        information, that is necessary to make the information 
        provided by the person to the agency complete and 
        accurate, and shall not thereafter furnish to the 
        agency any of the information that remains not complete 
        or accurate.
          (3) Duty to provide notice of dispute.--If the 
        completeness or accuracy of any information furnished 
        by any person to any consumer reporting agency is 
        disputed to such person by a consumer, the person may 
        not furnish the information to any consumer reporting 
        agency without notice that such information is disputed 
        by the consumer.
          (4) Duty to provide notice of closed accounts.--A 
        person who regularly and in the ordinary course of 
        business furnishes information to a consumer reporting 
        agency regarding a consumer who has a credit account 
        with that person shall notify the agency of the 
        voluntary closure of the account by the consumer, in 
        information regularly furnished for the period in which 
        the account is closed.
          (5) Duty to provide notice of delinquency of 
        accounts.--(A) In general.--A person who furnishes 
        information to a consumer reporting agency regarding a 
        delinquent account being placed for collection, charged 
        to profit or loss, or subjected to any similar action 
        shall, not later than 90 days after furnishing the 
        information, notify the agency of the date of 
        delinquency on the account, which shall be the month 
        and year of the commencement of the delinquency on the 
        account that immediately preceded the action.
                  (B) Rule of construction.--For purposes of 
                this paragraph only, and provided that the 
                consumer does not dispute the information, a 
                person that furnishes information on a 
                delinquent account that is placed for 
                collection, charged for profit or loss, or 
                subjected to any similar action, complies with 
                this paragraph, if--
                          (i) the person reports the same date 
                        of delinquency as that provided by the 
                        creditor to which the account was owed 
                        at the time at which the commencement 
                        of the delinquency occurred, if the 
                        creditor previously reported that date 
                        of delinquency to a consumer reporting 
                        agency;
                          (ii) the creditor did not previously 
                        report the date of delinquency to a 
                        consumer reporting agency, and the 
                        person establishes and follows 
                        reasonable procedures to obtain the 
                        date of delinquency from the creditor 
                        or another reliable source and reports 
                        that date to a consumer reporting 
                        agency as the date of delinquency; or
                          (iii) the creditor did not previously 
                        report the date of delinquency to a 
                        consumer reporting agency and the date 
                        of delinquency cannot be reasonably 
                        obtained as provided in clause (ii), 
                        the person establishes and follows 
                        reasonable procedures to ensure the 
                        date reported as the date of 
                        delinquency precedes the date on which 
                        the account is placed for collection, 
                        charged to profit or loss, or subjected 
                        to any similar action, and reports such 
                        date to the credit reporting agency.
          (6) Duties of furnishers upon notice of identity 
        theft-related information.--
                  (A) Reasonable procedures.--A person that 
                furnishes information to any consumer reporting 
                agency shall have in place reasonable 
                procedures to respond to any notification that 
                it receives from a consumer reporting agency 
                under section 605B relating to information 
                resulting from identity theft, to prevent that 
                person from refurnishing such blocked 
                information.
                  (B) Information alleged to result from 
                identity theft.--If a consumer submits an 
                identity theft report to a person who furnishes 
                information to a consumer reporting agency at 
                the address specified by that person for 
                receiving such reports stating that information 
                maintained by such person that purports to 
                relate to the consumer resulted from identity 
                theft, the person may not furnish such 
                information that purports to relate to the 
                consumer to any consumer reporting agency, 
                unless the person subsequently knows or is 
                informed by the consumer that the information 
                is correct.
          (7) Negative information.--
                  (A) Notice to consumer required.--
                          (i) In general.--If any financial 
                        institution that extends credit and 
                        regularly and in the ordinary course of 
                        business furnishes information to a 
                        consumer reporting agency described in 
                        section 603(p) furnishes negative 
                        information to such an agency regarding 
                        credit extended to a customer, the 
                        financial institution shall provide a 
                        notice of such furnishing of negative 
                        information, in writing, to the 
                        customer.
                          (ii) Notice effective for subsequent 
                        submissions.--After providing such 
                        notice, the financial institution may 
                        submit additional negative information 
                        to a consumer reporting agency 
                        described in section 603(p) with 
                        respect to the same transaction, 
                        extension of credit, account, or 
                        customer without providing additional 
                        notice to the customer.
                  (B) Time of notice.--
                          (i) In general.--The notice required 
                        under subparagraph (A) shall be 
                        provided to the customer prior to, or 
                        no later than 30 days after, furnishing 
                        the negative information to a consumer 
                        reporting agency described in section 
                        603(p).
                          (ii) Coordination with new account 
                        disclosures.--If the notice is provided 
                        to the customer prior to furnishing the 
                        negative information to a consumer 
                        reporting agency, the notice may not be 
                        included in the initial disclosures 
                        provided under section 127(a) of the 
                        Truth in Lending Act.
                  (C) Coordination with other disclosures.--The 
                notice required under subparagraph (A)--
                          (i) may be included on or with any 
                        notice of default, any billing 
                        statement, or any other materials 
                        provided to the customer; and
                          (ii) must be clear and conspicuous.
                  (D) Model disclosure.--
                          (i) Duty of bureau.--The Bureau shall 
                        prescribe a brief model disclosure that 
                        a financial institution may use to 
                        comply with subparagraph (A), which 
                        shall not exceed 30 words.
                          (ii) Use of model not required.--No 
                        provision of this paragraph may be 
                        construed to require a financial 
                        institution to use any such model form 
                        prescribed by the Bureau.
                          (iii) Compliance using model.--A 
                        financial institution shall be deemed 
                        to be in compliance with subparagraph 
                        (A) if the financial institution uses 
                        any model form prescribed by the Bureau 
                        under this subparagraph, or the 
                        financial institution uses any such 
                        model form and rearranges its format.
                  (E) Use of notice without submitting negative 
                information.--No provision of this paragraph 
                shall be construed as requiring a financial 
                institution that has provided a customer with a 
                notice described in subparagraph (A) to furnish 
                negative information about the customer to a 
                consumer reporting agency.
                  (F) Safe harbor.--A financial institution 
                shall not be liable for failure to perform the 
                duties required by this paragraph if, at the 
                time of the failure, the financial institution 
                maintained reasonable policies and procedures 
                to comply with this paragraph or the financial 
                institution reasonably believed that the 
                institution is prohibited, by law, from 
                contacting the consumer.
                  (G) Definitions.--For purposes of this 
                paragraph, the following definitions shall 
                apply:
                          (i) Negative information.--The term 
                        ``negative information'' means 
                        information concerning a customer's 
                        delinquencies, late payments, 
                        insolvency, or any form of default.
                          (ii) Customer; financial 
                        institution.--The terms ``customer''and 
                        ``financial institution'' have the same 
                        meanings as in section 509 Public Law 
                        106-102.
          (8) Ability of consumer to dispute information 
        directly with furnisher.--
                  (A) In general.--The Bureau shall, in 
                consultation with the Federal Trade Commission, 
                the Federal banking agencies, and the National 
                Credit Union Administration, prescribe 
                regulations that shall identify the 
                circumstances under which a furnisher shall be 
                required to reinvestigate a dispute concerning 
                the accuracy of information contained in a 
                consumer report on the consumer, based on a 
                direct request of a consumer.
                  (B) Considerations.--In prescribing 
                regulations under subparagraph (A), the 
                agencies shall weigh--
                          (i) the benefits to consumers with 
                        the costs on furnishers and the credit 
                        reporting system;
                          (ii) the impact on the overall 
                        accuracy and integrity of consumer 
                        reports of any such requirements;
                          (iii) whether direct contact by the 
                        consumer with the furnisher would 
                        likely result in the most expeditious 
                        resolution of any such dispute; and
                          (iv) the potential impact on the 
                        credit reporting process if credit 
                        repair organizations, as defined in 
                        section 403(3), including entities that 
                        would be a credit repair organization, 
                        but for section 403(3)(B)(i), are able 
                        to circumvent the prohibition in 
                        subparagraph (G).
                  (C) Applicability.--Subparagraphs (D) through 
                (G) shall apply in any circumstance identified 
                under the regulations promulgated under 
                subparagraph (A).
                  (D) Submitting a notice of dispute.--A 
                consumer who seeks to dispute the accuracy of 
                information shall provide a dispute notice 
                directly to such person at the address 
                specified by the person for such notices that--
                          (i) identifies the specific 
                        information that is being disputed;
                          (ii) explains the basis for the 
                        dispute; and
                          (iii) includes all supporting 
                        documentation required by the furnisher 
                        to substantiate the basis of the 
                        dispute.
                  (E) Duty of person after receiving notice of 
                dispute.--After receiving a notice of dispute 
                from a consumer pursuant to subparagraph (D), 
                the person that provided the information in 
                dispute to a consumer reporting agency shall--
                          (i) conduct an investigation with 
                        respect to the disputed information;
                          (ii) review all relevant information 
                        provided by the consumer with the 
                        notice;
                          (iii) complete such person's 
                        investigation of the dispute and report 
                        the results of the investigation to the 
                        consumer before the expiration of the 
                        period under section 611(a)(1) within 
                        which a consumer reporting agency would 
                        be required to complete its action if 
                        the consumer had elected to dispute the 
                        information under that section; and
                          (iv) if the investigation finds that 
                        the information reported was 
                        inaccurate, promptly notify each 
                        consumer reporting agency to which the 
                        person furnished the inaccurate 
                        information of that determination and 
                        provide to the agency any correction to 
                        that information that is necessary to 
                        make the information provided by the 
                        person accurate.
                  (F) Frivolous or irrelevant dispute.--
                          (i) In general.--This paragraph shall 
                        not apply if the person receiving a 
                        notice of a dispute from a consumer 
                        reasonably determines that the dispute 
                        is frivolous or irrelevant, including--
                                  (I) by reason of the failure 
                                of a consumer to provide 
                                sufficient information to 
                                investigate the disputed 
                                information; or
                                  (II) the submission by a 
                                consumer of a dispute that is 
                                substantially the same as a 
                                dispute previously submitted by 
                                or for the consumer, either 
                                directly to the person or 
                                through a consumer reporting 
                                agency under subsection (b), 
                                with respect to which the 
                                person has already performed 
                                the person's duties under this 
                                paragraph or subsection (b), as 
                                applicable.
                          (ii) Notice of determination.--Upon 
                        making any determination under clause 
                        (i) that a dispute is frivolous or 
                        irrelevant, the person shall notify the 
                        consumer of such determination not 
                        later than 5 business days after making 
                        such determination, by mail or, if 
                        authorized by the consumer for that 
                        purpose, by any other means available 
                        to the person.
                          (iii) Contents of notice.--A notice 
                        under clause (ii) shall include--
                                  (I) the reasons for the 
                                determination under clause (i); 
                                and
                                  (II) identification of any 
                                information required to 
                                investigate the disputed 
                                information, which may consist 
                                of a standardized form 
                                describing the general nature 
                                of such information.
                  (G) Exclusion of credit repair 
                organizations.--This paragraph shall not apply 
                if the notice of the dispute is submitted by, 
                is prepared on behalf of the consumer by, or is 
                submitted on a form supplied to the consumer 
                by, a credit repair organization, as defined in 
                section 403(3), or an entity that would be a 
                credit repair organization, but for section 
                403(3)(B)(i).
          (9) Duty to provide notice of status as medical 
        information furnisher.--A person whose primary business 
        is providing medical services, products, or devices, or 
        the person's agent or assignee, who furnishes 
        information to a consumer reporting agency on a 
        consumer shall be considered a medical information 
        furnisher for purposes of this title, and shall notify 
        the agency of such status.
  (b) Duties of Furnishers of Information Upon Notice of 
Dispute.--
          (1) In general.--After receiving notice pursuant to 
        section 611(a)(2) of a dispute with regard to the 
        completeness or accuracy of any information provided by 
        a person to a consumer reporting agency, the person 
        shall--
                  (A) conduct an investigation with respect to 
                the disputed information;
                  (B) review all relevant information provided 
                by the consumer reporting agency pursuant to 
                section 611(a)(2);
                  (C) report the results of the investigation 
                to the consumer reporting agency;
                  (D) if the investigation finds that the 
                information is incomplete or inaccurate, report 
                those results to all other consumer reporting 
                agencies to which the person furnished the 
                information and that compile and maintain files 
                on consumers on a nationwide basis; and
                  (E) if an item of information disputed by a 
                consumer is found to be inaccurate or 
                incomplete or cannot be verified after any 
                reinvestigation under paragraph (1), for 
                purposes of reporting to a consumer reporting 
                agency only, as appropriate, based on the 
                results of the reinvestigation promptly--
                          (i) modify that item of information;
                          (ii) delete that item of information; 
                        or
                          (iii) permanently block the reporting 
                        of that item of information.
          (2) Deadline.--A person shall complete all 
        investigations, reviews, and reports required under 
        paragraph (1) regarding information provided by the 
        person to a consumer reporting agency, before the 
        expiration of the period under section 611(a)(1) within 
        which the consumer reporting agency is required to 
        complete actions required by that section regarding 
        that information.
  (c) Limitation on Liability.--Except as provided in section 
621(c)(1)(B), sections 616 and 617 do not apply to any 
violation of--
          (1) subsection (a) of this section, including any 
        regulations issued thereunder;
          (2) subsection (e) of this section, except that 
        nothing in this paragraph shall limit, expand, or 
        otherwise affect liability under section 616 or 617, as 
        applicable, for violations of subsection (b) of this 
        section; or
          (3) subsection (e) of section 615.
  (d) Limitation on Enforcement.--The provisions of law 
described in paragraphs (1) through (3) of subsection (c) 
(other than with respect to the exception described in 
paragraph (2) of subsection (c)) shall be enforced exclusively 
as provided under section 621 by the Federal agencies and 
officials and the State officials identified in section 621.
  (e) Accuracy Guidelines and Regulations Required.--
          (1) Guidelines.--The Bureau shall, with respect to 
        persons or entities that are subject to the enforcement 
        authority of the Bureau under section 621--
                  (A) establish and maintain guidelines for use 
                by each person that furnishes information to a 
                consumer reporting agency regarding the 
                accuracy and integrity of the information 
                relating to consumers that such entities 
                furnish to consumer reporting agencies, and 
                update such guidelines as often as necessary; 
                and
                  (B) prescribe regulations requiring each 
                person that furnishes information to a consumer 
                reporting agency to establish reasonable 
                policies and procedures for implementing the 
                guidelines established pursuant to subparagraph 
                (A).
          (2) Criteria.--In developing the guidelines required 
        by paragraph (1)(A), the Bureau shall--
                  (A) identify patterns, practices, and 
                specific forms of activity that can compromise 
                the accuracy and integrity of information 
                furnished to consumer reporting agencies;
                  (B) review the methods (including 
                technological means) used to furnish 
                information relating to consumers to consumer 
                reporting agencies;
                  (C) determine whether persons that furnish 
                information to consumer reporting agencies 
                maintain and enforce policies to ensure the 
                accuracy and integrity of information furnished 
                to consumer reporting agencies; and
                  (D) examine the policies and processes that 
                persons that furnish information to consumer 
                reporting agencies employ to conduct 
                reinvestigations and correct inaccurate 
                information relating to consumers that has been 
                furnished to consumer reporting agencies.

           *       *       *       *       *       *       *


                             MINORITY VIEWS

    Committee Republicans believe that H.R. 3621, the Student 
Borrower Credit Improvement Act of 2019, is yet another bill 
that fails to address the underlying issues related to the 
federal student loan debt crisis, which was further exacerbated 
by the Democrats' goal of nationalizing student lending in 
2010. Instead of addressing the underlying issues related to 
student loan debt, proponents of H.R. 3621 seek to address 
problems in the private student loan market despite the fact 
that the private market is made up of less than ten percent of 
student loan borrowers. Moreover, approximately 98 percent of 
student loans are repaid in the private market.
    H.R. 3621, as amended, prevents credit reporting agencies 
from incorporating into consumer reports any adverse 
information relating to a delinquent or defaulted private 
education loan if the consumer has made nine on time monthly 
payments in a consecutive ten-month period. The legislation 
also prohibits credit reporting agencies from taking civil 
action against a consumer pursuing rehabilitation.
    In 2010, the Democrats nationalized student lending through 
the reconciliation process related to Obamacare. Rather than 
searching for a solution to rising college costs and financial 
illiteracy, Democrats further exacerbated the student loan 
crisis by saddling the federal government and an entire 
generation with a $1.5 trillion debt load. Unlike the high 
repayment rate with respect to private loans, the default rate 
for the Department of Education's Direct Loan program is ``16.8 
percent by recipient count and 13.6 percent by total 
amount.''\1\
---------------------------------------------------------------------------
    \1\https://ifap.ed.gov/eannouncements/
080719FSAPostsNewReportsToFSADataCenter.html.
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    The Higher Education Act currently provides rehabilitation 
opportunities for federal loan holders who have defaulted on 
student loans. H.R. 3621 seeks to expand rehabilitation 
opportunities with respect to private loans not only for those 
who defaulted but for those who are delinquent in repayment. 
While expanding the opportunities to a new class of borrowers, 
H.R. 3621 fails to define `delinquent.' The inclusion of this 
vague language will impact a lender's ability to determine 
creditworthiness or a borrower's ability to repay.
    Committee Republicans view this legislation as a solution 
in search of a problem and an attempt by Democrats to appear as 
if they are helping students impacted by the student loan debt. 
Instead, H.R. 3621 offers little more than window dressing 
given the small number of borrowers covered by the protections 
set out in the bill. During the markup of H.R. 3621, 
Congressman Hill offered an amendment to expand the bill to 
cover all education loans, not just those made by financial 
institutions. The amendment was ruled non-germane by the 
Chairwoman.
    Further, Committee Republicans recognize the importance of 
financial literacy training and the impact it can have on a 
consumer's financial health. Congressman Gooden offered an 
amendment during the markup that would require a delinquent 
student loan borrower to complete financial literacy training 
in addition to the rehabilitation requirements of this 
legislation. This commonsense amendment is in line with the 
recent House-passed legislation that would allow the U.S. 
Department of Housing and Urban Development to provide a 
discount on Federal Housing Authority single-family mortgage 
insurance premiums for first-time homebuyers who complete a 
housing counseling program. Financial literacy programs are 
effective tools and have proven to reduce mortgage delinquency 
rates, and this training would undoubtedly benefit all 
consumers, particularly those that have found themselves in 
circumstances of delinquency or default. Unfortunately, 
Congressman Gooden's amendment was rejected by a party line 
vote of 25-33.
    Committee Republicans remain concerned by the student loan 
debt crisis facing millions of Americans and believe a 
comprehensive and thoughtfully-crafted bill should be pursued 
by the committees of jurisdiction. However, legislation that 
prevents the disclosure of adverse information relating to a 
delinquent or defaulted student loan fails to address the 
underlying issues and is a solution in search of a problem. 
This undermines the underwriting that is central to the credit 
reporting system and could ultimately lead to increased costs 
of credit for millions of American borrowers.

                                   David Kustoff.
                                   Barry Loudermilk.
                                   Lance Gooden.
                                   William R. Timmons, IV.
                                   Tom Emmer.
                                   Scott R. Tipton.
                                   Ted Budd.
                                   Peter T. King (NY).
                                   Roger Williams.
                                   Trey Hollingsworth.
                                   J. French Hill (AK).
                                   John W. Rose (TN).
                                   Warren Davidson (OH).
                                   Anthony Gonzalez (OH).
                                   Denver Riggleman.
                                   Andy Barr.
                                   Blaine Luetkemeyer.
                                   Bill Huizenga.
                                   Steve Stivers.
                                   Alexander X. Mooney (WV).
                                   Bill Posey.
                                   Frank D. Lucas.
                                   Ann Wagner.
                                   Lee M. Zeldin.
                                   Patrick T. McHenry.
                                   Bryan Steil.

                                  [all]