Clean Slate through Consolidation Act

HR 4591, the Clean Slate through Consolidation Act, requires federal student loan holders to request credit bureaus to remove default marks from borrowers' credit reports when they consolidate a defaulted federal student loan under the Higher Education Act. It directly affects borrowers who obtain a Federal Direct Consolidation Loan that pays off their previously defaulted federal student loans. The key mechanism is a mandatory request to consumer reporting agencies to delete the adverse credit information related to the discharged defaulted loan. This policy change automatically clears the default from credit histories upon successful consolidation, without requiring additional action from the borrower.