Clean Slate through Rehabilitation Act

Bill Number

H.R. 8361

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Education

Status

Introduced

Latest Action

2026-04-16: Referred to the House Committee on Education and Workforce.

Last Updated

2026-04-27T20:17:53Z

AI-Generated Summary

Clean Slate through Rehabilitation Act (H.R. 8361)

Purpose

To update federal student loan rules so that borrowers who successfully rehabilitate a defaulted loan get a fuller "clean slate" on their credit reports by removing all negative information tied to that loan, not just the default mark.

Key Provisions

• Amends Section 428F(a)(1)(C) of the Higher Education Act of 1965, which covers the Default Reduction Program for federal student loans.
• Requires removal of any adverse information related to the rehabilitated loan from the borrower's credit history.

Significant Changes to Existing Law

• Current law only removes the record of default from credit reports after rehabilitation.
• New language expands this to eliminate all adverse credit information linked to the loan (e.g., late payments or collections notices), providing broader credit repair.

Potential Impacts

• Citizens: Rehabilitated borrowers may see faster credit score improvements, making it easier to qualify for mortgages, car loans, jobs, or rentals.
• Government agencies: U.S. Department of Education could see higher rehabilitation rates, reducing long-term default costs.
• No direct impact on international relations.

Main Stakeholders Affected

• Student loan borrowers in default who complete rehabilitation (primary beneficiaries).
• Credit reporting agencies (e.g., Equifax, Experian, TransUnion), which must update records.
• Federal student loan servicers and the Department of Education, handling program implementation.
• Lenders and employers, who rely on cleaner credit data for decisions.

Notable Legal, Constitutional, or Political Implications

• Legal: Aligns with existing rehabilitation incentives but expands consumer protections under federal loan law; may require credit bureaus to comply via regulations from the Consumer Financial Protection Bureau.
• Constitutional: No apparent issues; fits Congress's authority over federal spending and education policy.
• Political: Supports debt relief efforts for students, potentially aiding economic mobility, but could raise concerns about credit accuracy from critics favoring full disclosure of payment history.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Williams, Nikema [D-GA-5]

Cosponsors (3)

Rep. Ross, Deborah K. [D-NC-2], Rep. Adams, Alma S. [D-NC-12], Rep. Stevens, Haley M. [D-MI-11]

Recent Actions

• 2026-04-16: Referred to the House Committee on Education and Workforce.
• 2026-04-16: Introduced in House
• 2026-04-16: Introduced in House

Bill Versions

• Clean Slate through Rehabilitation Act — issued 2026-04-16 — PDF (2 pages)