,i  #aafth ,,congress  #ast ,session    
,h4 ,r4 #cfba  ,,in ,,the ,,house ,,of  
,,representatives  ,july #e1 #bjai,ms4  
,pressley introduced the following bill2
 which was referred to the ,committee on
 ,financial ,services  ,a ,,bill  ,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 repayment1 and for   
other purposes4  #a4 ,short title ,this 
,act may be cited as the ,student       
,borrower ,credit ,improvement ,act4    
#b4 ,findings ,congress finds the       
following3  7#a7 ,the ,october #bjad    
report of the ,consumer ,financial      
,protection ,bureau titled ,annual      
,report of the ,,cfpb ,student ,loan    
,ombudsman noted many private education 
loan borrowers1 who sought to negotiate 
a modified repayment plan when they were
 experiencing a period of financial     
distress1 were unable to get assistance 
from their loan holders1 which often    

resulting in them defaulting on their   
loans4 ,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 ,recession4  7#b7 ,although     
private student loan holders may allow a
 borrower to postpone payments while    
enrolled in school full-time1 many limit
 this option to a certain time period1  
usually #dh to #ff months4 ,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 degree4 ,the ,consumer    
,bureau found that borrowers who were   
unable to make payments often defaulted 
or had their accounts sent to           
collections before they were even able  
to graduate4  #c4 ,removes adverse      
information for certain defaulted or    
delinquent private education loan       

borrowers who demonstrate a history of  
loan repayment  7a7 ,in general ,the    
,fair ,credit ,reporting ,act 7#ae      
,u4,s4,c4 #afha et seq47 is amended by  
inserting after section #fje;,b the     
following new section3  #fje;,c4 ,credit
 rehabilitation for distressed private  
education loan borrowers who demonstrate
 a history of loan repayment  7a7 ,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 #i      
on-time monthly payments 7in accordance 
with the terms and conditions of the    
borrower's original loan agreement or   
any other repayment agreement that      
antedates the original agreement7 during
 a period of #aj consecutive months on  
such loan after the date on which the   
delinquency or default occurred4  7b7   

,interruption of #aj-,month period for  
certain consumers facing unusual        
extenuating life events  7#a7           
,permissible interruption of the        
#aj-month period ,a borrower may stop   
making consecutive monthly payments and 
be granted a grace period after which   
the #aj-month period described in       
subsection 7a7 shall resume4 ,such grace
 period shall be provided under the     
following circumstances3  7,a7 ,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 #cja of    
title #cg1 ,united ,states ,code1       
hazardous duty pay under section #cea of
 such title1 or other assignment or     
special duty pay under section #ceb of  
such title1 the grace period shall begin
 on the date on which the borrower      
begins such assignment or duty and end  
on the date that is #f months after the 
completion of such assignment or duty4  
7,b7 ,with respect to a borrower who    

resides in an area affected by a major  
disaster or emergency declared under the
 ,robert ,t4 ,stafford ,disaster ,relief
 and ,emergency ,assistance ,act 7#db   
,u4,s4,c4 #eaba et seq471 the grace     
period shall begin on the date on which 
the major disaster or emergency was     
declared and end on the date that is #c 
months after such date4  7#b7 ,other    
circumstances  7,a7 ,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  
#aj-month period described in subsection
 7a7 shall resume4  7,b7 ,borrower      
demonstrating hardship defined ,in this 
paragraph1 the term borrower            
demonstrating hardship means a borrower 
or a class of borrowers who1 as         
determined by the ,bureau1 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 or      

borrowers does not have the capacity to 
comply with the requirements of         
subsection 7a74  7c7 ,procedures ,the   
,bureau shall establish procedures to   
implement the credit rehabilitation     
described in this section1 including--  
7#a7 the manner1 content1 and form for  
requesting credit rehabilitation2  7#b7 
the method for validating that the      
borrower is satisfying the requirements 
of subsection 7a72  7#c7 the manner1    
content1 and form for notifying the     
private educational loan holder of--    
7,a7 the borrower's participation in    
credit rehabilitation under subsection  
7a72  7,b7 the requirements of          
subsection 7d72 and  7,c7 the           
restrictions of subsection 7f72  7#d7   
the manner1 content1 and form for       
notifying a consumer reporting agency   
of-- 7,a7 the borrower's participation  
in credit rehabilitation under          
subsection 7a72 and  7,b7 the           
requirements of subsection 7d72  7#e7   
the method for verifying whether a      

borrower qualifies for the grace period 
described in subsection 7b72  7#f7 the  
manner1 content1 and form of notifying a
 consumer reporting agency and private  
educational loan holder that a borrower 
was granted a grace period2 and  7#g7   
the method for a borrower to demonstrate
 that the borrower has successfully     
satisfied the requirements under        
subsection 7a7 and for notifying a      
consumer reporting agency and private   
educational loan holder4  7d7           
,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 #i on-time     
monthly payments during a period of #aj 
consecutive months on a delinquent or   
defaulted private education loan1       
including codes specifying the grace    
period described in subsection 7b7 and  
any agreement to modify monthly         
payments4 ,such codes shall not appear  

on any report provided to a third party1
 and shall be removed from the          
consumer's credit report upon the       
consumer's completion of the            
rehabilitation period under this        
section4  7e7 ,eliminating barriers to  
credit rehabilitation ,a consumer report
 in which a private educational loan    
holder furnishes the standardized       
reporting codes described in subsection 
7d7 to a consumer reporting agency1 or  
in which a consumer reporting agency    
includes such codes1 shall be deemed to 
comply with the requirements for        
accuracy and completeness required under
 sections #fbc7;a77#a7 and #fcj4  7f7   
,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    
loan holder has been notified--  7#a7   
under subsection 7c77#c7 of a borrower's

 intent to participate in               
rehabilitation2  7#b7 under subsection  
7c77#f7 that a borrower was granted the 
grace period2 or  7#c7 under subsection 
7c77#g7 that the borrower has           
successfully satisfied the requirements 
under subsection 7a74  7g7              
,rehabilitation does not affect 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 rehabilitation4  7h7      
,requirement for 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 rehabilitation1 such payment plan    
shall be reasonable and affordable1 as  
determined by the ,bureau4  7i7 ,rules  
of construction  7#a7 ,application to   

subsequent default or delinquency ,a    
borrower who satisfies the requirements 
under subsection 7a7 shall be eligible  
for additional credit rehabilitation    
described in subsection 7a7 with respect
 to any subsequent default or           
delinquency of the borrower on the      
rehabilitated private education loan4   
7#b7 ,interruption of the consecutive   
payment period requirement ,the grace   
period described in subsection          
7b77#a77;,a7 shall not apply if any     
regulation promulgated under section    
#ihg of title #aj1 ,united ,states ,code
 7commonly known as the ,military       
,lending ,act71 or the ,servicemembers  
,civil ,relief ,act 7#ej ,u4,s4,c4 ,app4
 #eja et seq47 allows for a grace period
 or other interruption of the #aj-month 
period described in subsection 7a7 and  
such grace period or other interruption 
is longer than the period described in  
subsection 7b77#a77;,a7 or otherwise    
provides greater protection or benefit  
to the borrower who is a member of the  

,armed ,forces4  4  7b7 ,conforming     
amendment ,section #fbc7;a77#a7 of the  
,fair ,credit ,reporting ,act 7#ae      
,u4,s4,c4 #afhas-#b7;a77#a77 is amended 
by striking subparagraph 7,e74  7c7     
,table of contents amendment ,the table 
of contents of the ,fair ,credit        
,reporting ,act is amended by inserting 
after the item relating to section      
#fje;,b the following new item3         
#fje;,c4 ,credit rehabilitation for     
distressed private education loan       
borrowers who demonstrate a history of  
loan repayment4  4  #d4 ,private        
education loan definitions ,section #fjc
 of the ,fair ,credit ,reporting ,act   
7#ae ,u4,s4,c4 #afha;a7 is amended by   
adding at the end the following new     
subsection3  7bb7 ,private education    
loan definitions ,the terms private     
education loan and private educational  
lender have the meanings given such     
terms1 respectively1 in section #adj7;a7
 of the ,truth in ,lending ,act4  4  #e4
 ,general ,bureau rulemaking ,except as 

otherwise provided1 not later than the  
end of the #b-year period beginning on  
the date of the enactment of this ,act1 
the ,bureau of ,consumer ,financial     
,protection shall issue final rules to  
implement the amendments made by this   
,act4