20 U.S.C. § 1080a — Reports to consumer reporting agencies and institutions of higher education

submitted 40 years ago by Pub. L. 89-329 to r/title-20-EDUCATION · 1,030 words · no verdicts yet

in plain englishAI-generated · not legal advice

The Secretary, guaranty agencies, lenders, and later holders must exchange student-loan information with consumer reporting agencies. The section lists required disclosures, accuracy and fairness safeguards, institutional disclosures, and how long default information may be reported.

(a) Agreements. To promote responsible repayment, the Secretary and each guaranty agency, eligible lender, and later holder must agree with each consumer reporting agency to exchange borrower information. Agreements may require timely responses to reporting-agency requests and borrower objections. Subject to (c), they must disclose for an unpaid loan: (1) that it is an education loan, using the term defined in section 1019; (2) the borrower’s total loans and remaining balance; (3) repayment status, subject to the Fair Credit Reporting Act; (4) default date and collection information, including repayment status after an insurance or guaranty payment; and (5) the note-cancellation date after repayment or a Secretary payment under section 1087. (b) Additional information. Agreements may allow a reporting agency, after receiving a default notice, to give the Secretary or guaranty agency that insures or guarantees the loan the borrower’s location and other information that may help the Secretary, guaranty agency, lender, or later holder collect the loan. (c) Agreement safeguards. The agreements must ensure that: (1) no information is disclosed unless its accuracy and completeness have been verified and the Secretary or guaranty agency has determined that disclosure would accomplish the purpose of this section; (2) changes and borrower objections are promptly reported and recorded as required by the Fair Credit Reporting Act; (3) information is not used for collection practices that are unfair or unreasonable or that involve harassment, intimidation, false or misleading representations, or unnecessary communication about the loan or the information; and (4) except to find the borrower, default information is not disclosed until the borrower is told it will be disclosed unless repayment begins. If repayment does not begin within a reasonable period, at least 30 days after notice was sent, the required information must be disclosed. (d) A participating guaranty agency, lender, later holder, or reporting agency is not a Government contractor under 5 U.S.C. 552a merely because it discloses or receives this information. (e) The Secretary and loan holders may disclose information described in (a) and (b) to eligible schools the borrower attends or attended. A school may arrange with holders of delinquent loans to provide current location or employment information or help contact borrowers and influence them to avoid default. (f) Despite the cited Fair Credit Reporting Act limits, a reporting agency may report a defaulted guaranteed-loan account until 7 years after (1) the Secretary or agency paid the holder’s claim, (2) the account was first reported, or (3) if the borrower later repaid and defaulted again, the later default date.

the actual law source: uscode.house.gov ↗public domain

(a) Agreements to exchange information

For the purpose of promoting responsible repayment of loans covered by Federal loan insurance pursuant to this part or covered by a guaranty agreement pursuant to section 1078 of this title, the Secretary and each guaranty agency, eligible lender, and subsequent holder shall enter into an agreement with each consumer reporting agency to exchange information concerning student borrowers, in accordance with the requirements of this section. For the purpose of assisting such consumer reporting agencies in complying with the Fair Credit Reporting Act [15 U.S.C. 1681 et seq.], such agreements may provide for timely response by the Secretary (concerning loans covered by Federal loan insurance) or by a guaranty agency, eligible lender, or subsequent holder (concerning loans covered by a guaranty agreement), or to requests from such consumer reporting agencies for responses to objections raised by borrowers. Subject to the requirements of subsection (c), such agreements shall require the Secretary or the guaranty agency, eligible lender, or subsequent holder, as appropriate, to disclose to such consumer reporting agencies, with respect to any loan under this part that has not been repaid by the borrower—

(1)

that the loan is an education loan (as such term is defined in section 1019 of this title);

(2)

the total amount of loans made to any borrower under this part and the remaining balance of the loans;

(3)

information concerning the repayment status of the loan for inclusion in the file of the borrower, except that nothing in this subsection shall be construed to affect any otherwise applicable provision of the Fair Credit Reporting Act (15 U.S.C. 1681 et seq.);

(4)

information concerning the date of any default on the loan and the collection of the loan, including information concerning the repayment status of any defaulted loan on which the Secretary has made a payment pursuant to section 1080(a) of this title or the guaranty agency has made a payment to the previous holder of the loan; and

(5)

the date of cancellation of the note upon completion of repayment by the borrower of the loan or payment by the Secretary pursuant to section 1087 of this title.

(b) Additional information

Such agreements may also provide for the disclosure by such consumer reporting agencies to the Secretary or a guaranty agency, whichever insures or guarantees a loan, upon receipt of a notice under subsection (a)(4) that such a loan is in default, of information concerning the borrower’s location or other information which may assist the Secretary, the guaranty agency, the eligible lender, or the subsequent holder in collecting the loan.

Agreements entered into pursuant to this section shall contain such provisions as may be necessary to ensure that—

(1)

no information is disclosed by the Secretary or the guaranty agency, eligible lender, or subsequent holder unless its accuracy and completeness have been verified and the Secretary or the guaranty agency has determined that disclosure would accomplish the purpose of this section;

(2)

as to any information so disclosed, such consumer reporting agencies will be promptly notified of, and will promptly record, any change submitted by the Secretary, the guaranty agency, eligible lender, or subsequent holder with respect to such information, or any objections by the borrower with respect to any such information, as required by section 611 of the Fair Credit Reporting Act (15 U.S.C. 1681i);

(3)

no use will be made of any such information which would result in the use of collection practices with respect to such a borrower that are not fair and reasonable or that involve harassment, intimidation, false or misleading representations, or unnecessary communication concerning the existence of such loan or concerning any such information; and

(4)

with regard to notices of default under subsection (a)(4) of this section, except for disclosures made to obtain the borrower’s location, the Secretary, or the guaranty agency, eligible lender, or subsequent holder whichever is applicable (A) shall not disclose any such information until the borrower has been notified that such information will be disclosed to consumer reporting agencies unless the borrower enters into repayment of his or her loan, but (B) shall, if the borrower has not entered into repayment within a reasonable period of time, but not less than 30 days, from the date such notice has been sent to the borrower, disclose the information required by this subsection.

(d) Contractor status of participants

A guaranty agency, eligible lender, or subsequent holder or consumer reporting agency which discloses or receives information under this section shall not be considered a Government contractor within the meaning of section 552a of title 5.

(e) Disclosure to institutions

The Secretary and each guaranty agency, eligible lender, and subsequent holder of a loan are authorized to disclose information described in subsections (a) and (b) concerning student borrowers to the eligible institutions such borrowers attend or previously attended. To further the purpose of this section, an eligible institution may enter into an arrangement with any or all of the holders of delinquent loans made to borrowers who attend or previously attended such institution for the purpose of providing current information regarding the borrower’s location or employment or for the purpose of assisting the holder in contacting and influencing borrowers to avoid default.

(f) Duration of authority

Notwithstanding paragraphs (4) and (5) of subsection (a) of section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)(4), (a)(5)), a consumer reporting agency may make a report containing information received from the Secretary or a guaranty agency, eligible lender, or subsequent holder regarding the status of a borrower’s defaulted account on a loan guaranteed under this part until—

(1)

7 years from the date on which the Secretary or the agency paid a claim to the holder on the guaranty;

(2)

7 years from the date the Secretary, guaranty agency, eligible lender, or subsequent holder first reported the account to the consumer reporting agency; or

(3)

in the case of a borrower who reenters repayment after defaulting on a loan and subsequently goes into default on such loan, 7 years from the date the loan entered default such subsequent time.

Source credit: (Pub. L. 89–329, title IV, § 430A, as added Pub. L. 99–498, title IV, § 402(a), Oct. 17, 1986, 100 Stat. 1398; amended Pub. L. 100–50, § 10(v), June 3, 1987, 101 Stat. 346; Pub. L. 102–325, title IV, § 424, July 23, 1992, 106 Stat. 543; Pub. L. 103–208, § 2(c)(52), Dec. 20, 1993, 107 Stat. 2467; Pub. L. 110–315, title IV, § 432(a), Aug. 14, 2008, 122 Stat. 3245; Pub. L. 111–39, title IV, § 402(f)(8), July 1, 2009, 123 Stat. 1944.)

history & why it existsrecord from the source credit

1986Enacted · Pub. L. 89-329 · 100 Stat. 1398
1987Amended · Pub. L. 100-50 · 101 Stat. 346
1992Amended · Pub. L. 102-325 · 106 Stat. 543
1993Amended · Pub. L. 103-208 · 107 Stat. 2467
2008Amended · Pub. L. 110-315 · 122 Stat. 3245
2009Amended · Pub. L. 111-39 · 123 Stat. 1944

A history note hasn’t been published yet. The record shows enactment by Pub. L. 89-329 on 1986-10-17.

all 0 arguments · sorted by: best

no arguments yet — make the first case