This bill changes one sentence in the Higher Education Act of 1965. It replaces the phrase "to remove the record of the default from the borrower's credit history" with "to remove any adverse information relating to such loan from the borrower's credit history." In short, after a borrower rehabilitates a loan, the bill would require removal of any adverse information tied to that loan from the borrower's credit history.
If you rehabilitate a qualifying student loan, information that harmed your credit and was related to that loan would be removed from your credit history. The change applies to loans covered by the Higher Education Act and starts when the law takes effect.
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The sponsors (Rep. Nikema Williams, Rep. Deborah Ross, Rep. Alma Adams, and Rep. Haley Stevens) introduced the bill to amend the Higher Education Act so that rehabilitation leads to removal of any adverse credit information related to the rehabilitated loan.
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