This bill would allow people who have defaulted on their federal student loans to have that negative information removed from their credit history once they consolidate those loans into a new Federal Direct Consolidation Loan. This could help borrowers get their credit back on track and make it easier for them to do things like rent an apartment or get a new job.
Latest Action
Referred to the House Committee on Education and the Workforce.
AI Summary
Plain-English explanation of this bill
This bill would allow people who have defaulted on their federal student loans to have that negative information removed from their credit history once they consolidate those loans into a new Federal Direct Consolidation Loan. This could help borrowers get their credit back on track and make it easier for them to do things like rent an apartment or get a new job.
Last updated: 12/29/2025
Official Summary
Congressional Research Service summary
<p><b>Clean Slate through Consolidation Act</b><strong></strong></p> <p>This bill provides for the removal of any adverse credit history related to a defaulted federal student loan from a borrower's credit history once the borrower has obtained a Federal Direct Consolidation Loan discharging the borrower's liability on the defaulted loan.</p>
Key Points
Main provisions of the bill
Removes negative credit history related to defaulted federal student loans once the borrower consolidates the loans into a new Federal Direct Consolidation Loan.
Helps borrowers who have defaulted on their federal student loans to improve their credit and access things like housing and employment more easily.
Applies to all borrowers who have defaulted on their federal student loans, not just certain groups.
How This Impacts Americans
Potential effects on citizens and communities
If this bill becomes law, it would benefit millions of Americans who have defaulted on their federal student loans by allowing them to 'clean up' their credit reports. This could make it easier for them to find housing, get hired for jobs, and generally improve their financial situations. The bill would apply broadly to all borrowers with defaulted federal loans, not just certain demographics, so the impact could be widespread.
Policy Areas
Primary Policy Area
Education
Scope & Jurisdiction
Jurisdiction Level
federal
Congressional Session
119th Congress
Citation Reference
4591, 119th Congress (2025). "Habitat Enhancement Now Act". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-4591
