The Clean Slate through Rehabilitation Act would amend federal student loan rules to allow borrowers who rehabilitate defaulted loans to have all negative credit information related to those loans removed from their credit reports. Currently, borrowers can only remove the record of default itself after rehabilitation, but this bill would also eliminate related adverse information that may affect their creditworthiness. The legislation would apply to federal student loan borrowers under the Higher Education Act and would help them rebuild their credit more completely after getting back on track with loan payments. The bill does not specify new funding requirements or implementation timelines beyond amending the existing default reduction program framework. By broadening credit relief for rehabilitated borrowers, the legislation aims to give people who have recovered from loan default a better chance to access credit and financial opportunities in the future.
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