Washington, D.C. – Congresswomen Deborah Ross (NC-02), Nikema Williams (GA-05), Haley Stevens (MI-11), and Alma Adams (NC-12) introduced a suite of bills: the Clean Slate Through Repayment Act, Clean Slate through Rehabilitation Act, and the Clean Slate Through Consolidation Act to remove default records from the credit history of federal student loan borrowers who have acted to rectify their defaulted loan. The Congresswomen introduced similar legislation in the 118th and 117th Congress.
Congresswoman Ross’ Clean Slate Through Repayment Act will remove records of default from student borrowers’ credit histories once they repay their loans. Congresswoman Williams’ Clean Slate Through Rehabilitation Act will ensure that all negative credit reporting related to a previously defaulted student loan is removed from a borrower’s credit history once the borrower has completed student loan rehabilitation. Congresswoman Stevens’ Clean Slate Through Consolidation Act will remove default records from the credit history of federal student loan borrowers who have consolidated their defaulted loan.
“Our nation is facing an unprecedented cost of living and student debt crisis, and too many young Americans are struggling to repay their student loans while staying afloat financially,” said Congresswoman Ross. “Americans should not be burdened with a poor credit history for seeking an education and making good faith attempts to pay off their loans. The high cost of education has prevented many young people from not only achieving their dreams but reaching the hallmarks of financial stability – whether it’s buying a home, owning a car, starting a business, or saving for the future. I’m proud to join my colleagues in introducing a series of bills to help borrowers get a clean slate and reach their goals.”
“I struggled to repay my student loans long after graduating. I understand the burden they place on a budget,” said Congresswoman Nikema Williams (GA-05). “Today, default and delinquency rates are reaching record highs, while Trump kicks over 7 million people off of the SAVE Program. We cannot abandon our students to drown in their debts. The student debt crisis demands a response, especially while everything from housing to groceries is getting more expensive. The Clean Slate series offers people the second chance they need to build on their education and escape the crushing weight of student loan debt.”
“Michiganders who make a good faith effort to pay off their student loans deserve a fair chance to reestablish their credit and participate in our economy,” said Rep. Haley Stevens (MI-11). “I am proud to join with my colleagues on this legislation that empowers borrowers to get back on track and start saving for their future.”
“As a first-generation college student, I know how hard it is to make ends meet and pay for college,” said Congresswoman Adams (NC-12), founder and co-chair of the HBCU Caucus. “That’s why the Clean Slate Series is so necessary. Burdensome student loan debt is dragging down millions of our best and brightest, preventing borrowers across generations from qualifying for the credit they need to buy a house, lease a car, or start a business. These three bills help borrowers hit the reset button and unlock a brighter future for themselves and their families. Especially in the wake of the Supreme Court’s denial of debt relief to millions of Americans, student loan debt remains a serious and often unfair burden for our families. I promised action on student loan debt, and with these three bills, Congresswomen Stevens, Ross, Williams, and I intend to deliver.”
This legislation has been endorsed by National Education Association (NEA), American Federation of Teachers (AFT), The Institute for College Access and Success (TICAS), and the National Association of Student Financial Aid Administrators (NASFAA), and the Center for Responsible Lending.
###