(S.

5) The Student Loan and Credit Reporting Agencies Act of 2019

116th Congress
1st Session

S. 5
To discontinue the practice of reporting student loans to crediting agencies, with
exceptions herein provided.

IN THE UNITED STATES SENATE

April 5, 2019
Ms. Sydney K. Pasto of Oregon for the United States Senate

SHORT TILE
This act may be cited as the Student Loan and Credit Reporting Agencies Act

FINDINGS AND PURPOSES

In the year of 2019, the total amount of student loan debt reached over $1 trillion.
This student loan debt has created many limitations on a productive society.
It has been found that many college graduates are unable to purchase homes
and are thus unable to contribute to a greater economy by their limitations on
housing. With the increasing costs of housing as well, it has been found that
college graduates with student loan debt are unable to purchase homes due
to their personal debt to income ratio, thus creating an a system that unfairly
punishes people who seek to improve their quality of life, but do not have
the means to provide the financial support for their college education, and
resort to taking out student loans to finish their education.
 (S. 5) The Student Loan and Credit Reporting Agencies Act of 2019

SECTION 1.
a. Student loans have become a major financial burden to many graduates for a
multitude of reasons.
b. First, student loans are not currently dischargeable in bankruptcy. This
means that even under extreme financial hardships, the graduate will still be
required to pay their student loans unless they are able to prove otherwise.
c. Second, student loans are currently reported to credit bureaus. These credit
bureaus become the first point of contact when people apply for home loans,
car loans, and credit cards.
d. Oftentimes, jobs will require a background check that requires financial
disclosure. This means that a graduate is required to disclose the amount of
student loans they have to their employer, thus potentially inhibiting their
career prospects.
e. Last, as common as student loans are, reporting student loans to credit
bureaus becomes a discriminatory and unfair practice hurting those that take
longer to pay back student loans or have had to take out a larger amount due
to the lack of financial support during their education. As such, it is
proposed that credit bureaus will no longer have access to student loan
information unless otherwise stated.

SEC. 2. OVERSIGHT BY THE CONSUMER FINANCIAL PROTECTION

BUREAU
a. To ensure that student loans are not reported to credit bureaus, the Consumer
Financial Protection Bureau will oversee this process.
 (S. 5) The Student Loan and Credit Reporting Agencies Act of 2019

b. From herein, the Consumer Financial Protection Bureau will ensure that all
past, present, and future student loans are not listed on a borrower’s credit
report.

SEC. 3. EXCEPTIONS
a. In order to ensure that student loans do not become disregarded financially
by borrowers, student loans shall only stay unlisted if the borrower is current
with all payments.
b. If the student loans become defaulted for non-payment or multiple missed
payments, the student loan companies may then report the default to the
credit bureaus.
c. Any other type of student loan including but not limited to: payment of
tuition by credit cards or personal loan, shall not be protected under this rule.

SEC. 4. SEVERABILITY CLAUSE

a. If any provision, amendment, or application of such provision or amendment
to any person or circumstance is held to be unconstitutional, the remainder
of this Act, the amendments made by this Act, and the application of such
provision or amendment to any person or circumstance shall not affected
thereby.

SEC. 5. DEFINITIONS
a. Student loan
1. In this Act, student loan is referred to as any loan taken out by a student
to pay for college including (and limited to) private and federal student
loans.
 (S. 5) The Student Loan and Credit Reporting Agencies Act of 2019

2. This includes direct unsubsidized federal loans, direct subsidized federal

loans, direct Perkins Loans (no longer available), direct PLUS loans,
parent PLUS loans, direct consolidation loans, and private student loans,
refinanced loans for graduates, and in-school loans for students and
parents.

SEC. 6. EFFEFCTIVE DATE

a. This bill comes into effect as soon as it becomes law.
b. The Consumer Financial Protection Bureau will have a maximum of ninety
(90) days from enactment of this law to become compliant.

AUTHORIZATION OF APPROPRIATIONS
a. In order to ensure compliance with this Act, the Consumer Financial
Protection Bureau will be authorized to use $500,000 to carry out this
Act.