[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5613 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 5613
To amend the Higher Education Act of 1965 to allow qualified
entrepreneurs to temporarily defer Federal student loan payments after
starting a new business.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 15, 2020
Mr. Gallego (for himself, Mr. Swalwell of California, and Ms. Haaland)
introduced the following bill; which was referred to the Committee on
Education and Labor
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to allow qualified
entrepreneurs to temporarily defer Federal student loan payments after
starting a new business.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Relief and Investment for Student
Entrepreneurs Act'' or the ``RISE Act''.
SEC. 2. DEFERMENT OF FEDERAL STUDENT LOAN PAYMENTS FOR QUALIFIED
ENTREPRENEURS.
Section 455(f) of the Higher Education Act of 1965 (20 U.S.C.
1087e(f)) is amended--
(1) in paragraph (1)--
(A) by striking ``or'' at the end of subparagraph
(A)(ii);
(B) by striking the period at the end of
subparagraph (B) and inserting ``; or''; and
(C) by adding at the end the following:
``(C) notwithstanding subparagraphs (A) and (B), in
the case of a deferment described in paragraph (2)(E),
shall not accrue.'';
(2) in paragraph (2)--
(A) in subparagraph (C), by striking ``or'' at the
end;
(B) in subparagraph (D), by striking the period at
the end and inserting ``; or''; and
(C) by adding at the end the following new
subparagraph:
``(E) subject to paragraph (5), not in excess of 3
years during which the borrower is a qualified
entrepreneur.''; and
(3) by adding at the end the following new paragraph:
``(5) Deferment for qualified entrepreneurs.--
``(A) Definition of qualified entrepreneur.--For
the purpose of this subsection, the term `qualified
entrepreneur' means a borrower who--
``(i) receives a degree from an institution
of higher education during the 10-year period
ending on the date on which the borrower
requests a deferment under paragraph (2)(E);
``(ii) registers at least 1 business entity
in a State during the 18-month period ending on
the date on which the borrower requests a
deferment under paragraph (2)(E);
``(iii) raises capital investment of not
less than $15,000 for such business entity; and
``(iv) has an outstanding balance of
principal and interest on a loan made under
this part of not less than $5,000.
``(B) Minimum employee requirement.--A borrower
granted deferment under paragraph (2)(E) shall not be
eligible to continue such deferment unless, on the date
that is 1 year after the date on which such deferment
is granted, the borrower--
``(i) employs at the business entity
described in subparagraph (A)(ii) not fewer
than 1 full-time employee who is not the
borrower or relative of the borrower; and
``(ii) pays such employees at a rate not
less than the minimum wage prescribed by the
State or locality in which the business entity
is located.''.
SEC. 3. LOAN CANCELLATION FOR ENTREPRENEURS.
Part D of title IV of the Higher Education Act of 1965 (20 U.S.C.
1087a et seq.) is further amended by adding at the end the following:
``SEC. 460A. LOAN CANCELLATION FOR ENTREPRENEURS.
``(a) Program Authorized.--The Secretary is authorized to carry out
a program of canceling the obligation to repay a qualified loan amount
in accordance with subsection (b) for Federal Direct Stafford Loans and
Federal Direct Unsubsidized Stafford Loans made under this part for any
borrower who--
``(1) for not less than a 3-year period and not more than a
10-year period ending on the date on which the borrower
requests a cancellation under this section, has owned and
controlled a qualified HUBZone small business concern (as
determined by the Administrator of the Small Business
Administration), which has been registered as business in a
State; and
``(2) is not in default on a loan for which the borrower
seeks forgiveness.
``(b) Qualified Loan Amount.--
``(1) In general.--The Secretary shall cancel not more than
$17,500 in the aggregate of the loan obligation on a Federal
Direct Stafford Loan or a Federal Direct Unsubsidized Stafford
Loan that is outstanding.
``(2) Treatment of consolidation loans.--A loan amount for
a Federal Direct Consolidation Loan may be a qualified loan
amount for the purposes of this subsection only to the extent
that such loan amount was used to repay a Federal Direct
Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, or
a loan made under section 428 or 428H, for a borrower who meets
the requirements of subsection (a), as determined in accordance
with regulations prescribed by the Secretary.
``(c) Priority.--The Secretary shall grant loan forgiveness under
this section on a first-come, first-served basis, and subject to the
availability of appropriations.
``(d) Rule of Construction.--Nothing in this section shall be
construed to authorize the refunding of any repayment of a loan.''.
SEC. 4. PUBLICATION AND REPORT.
(a) Publication.--The Secretary of Education and the Administrator
of the Small Business Administration shall each make available, on
publicly accessible websites of the Department of Education and the
Small Business Administration, respectively, information on the student
loan deferment program for qualified entrepreneurs under section 455(f)
of the Higher Education Act of 1965 (20 U.S.C. 1087e(f)), as amended by
this Act.
(b) Report to Congress.--Not later than 180 days after the date of
the enactment of this Act, the Secretary of Education shall submit to
Congress a report that includes--
(1) an assessment of the progress of the Secretary in
carrying out the student loan deferment program for qualified
entrepreneurs under section 455(f) of the Higher Education Act
of 1965 (20 U.S.C. 1087e(f)), as amended by this Act; and
(2) a description of any ongoing efforts to increase
participation in such program.
<all>