Federal loan consolidation would erase default from credit reports
In committeeH.R. 8356Latest action
Sponsor: Haley M. Stevens · Representative · MI
AIDecoded by AI · checked against the recordRead the official text
Official title: Clean Slate through Consolidation Act
119th Congress
Topics: Education
Introduced:
Read the official bill on Congress.govIn plain words
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If you consolidate a defaulted federal student loan, this bill would require lenders to remove the default from your credit report.
40-second read · 4 questions answered below
What does this do?
This bill says that when a borrower pays off a defaulted federal student loan by taking out a Direct Consolidation Loan, the government or loan holder must ask credit bureaus to delete the default record from the borrower's credit history. The default would be removed as if it never appeared.
Who does it affect?
This affects federal student loan borrowers who have defaulted on loans that were originally made, insured, or guaranteed under federal student loan programs. It applies to those who choose to resolve that default through consolidation.
Why does it matter?
Right now, a default can stay on a borrower's credit report even after they consolidate, which can continue to hurt their credit score. This bill would end that outcome by requiring removal of the default record after consolidation.
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Read the official bill on Congress.govMake the call
Where does it stand?
- IntroducedApr 16, 2026
- House committeeYou are here · Apr 16, 2026
- House vote
- Senate
- The president's desk
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the president.
Latest action: — Referred to the House Committee on Education and Workforce.