Clean Slate through Consolidation Act requires removal of default records from credit history upon obtaining a Federal Direct Consolidation Loan.
The Clean Slate through Consolidation Act amends the Higher Education Act of 1965 to mandate the removal of default records from credit history for borrowers who obtain a Federal Direct Consolidation Loan that discharges the defaulted loan. This applies to loans made, insured, or guaranteed under the Higher Education Act. The Secretary, guaranty agency, or other loan holder must request consumer reporting agencies to remove the default from the borrower's credit history.
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