I 
114TH CONGRESS 
2D SESSION 
H. R. 6250 
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 
SEPTEMBER 28, 2016 
Mr. GALLEGO (for himself and Mr. SWALWELL of California) introduced the 
following bill; which was referred to the Committee on Education and the 
Workforce 
A BILL 
To amend the Higher Education Act of 1965 to allow quali-
fied entrepreneurs to temporarily defer Federal student 
loan payments after starting a new business. 
Be it enacted by the Senate and House of Representa-
tives 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 PAY-
MENTS FOR QUALIFIED ENTREPRENEURS. 
Section 455(f) of the Higher Education Act of 1965 
(20 U.S.C. 1087e(f)) is amended— 
VerDate Sep 11 2014 
22:13 Oct 05, 2016
Jkt 069200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H6250.IH
H6250
mstockstill on DSK3G9T082PROD with BILLS
(1) 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 ex-
cess of 3 years during which the borrower is a 
qualified entrepreneur.’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(5) DEFERMENT
FOR
QUALIFIED
ENTRE-
PRENEURS.— 
‘‘(A) DEFINITION OF QUALIFIED ENTRE-
PRENEUR.—For the purpose of this subsection, 
the term ‘qualified entrepreneur’ means a bor-
rower who— 
‘‘(i) received a degree from an institu-
tion of higher education during the 10-year 
period ending on the date on which 
deferment is granted under paragraph 
(2)(E); 
VerDate Sep 11 2014 
22:13 Oct 05, 2016
Jkt 069200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H6250.IH
H6250
mstockstill on DSK3G9T082PROD with BILLS
‘‘(ii) registered at least 1 business en-
tity in a State during the 18-month period 
ending on such date; 
‘‘(iii) raised capital investment of not 
less than $30,000 for such business entity; 
and 
‘‘(iv) has an outstanding balance of 
principal and interest on loans made under 
this part of not less than $5,000. 
‘‘(B) 
MINIMUM
EMPLOYEE
REQUIRE-
MENT.—A borrower granted deferment under 
paragraph (2)(E) shall not be eligible to con-
tinue such deferment unless, on the date that is 
1 year after date on which such deferment is 
granted, the borrower— 
‘‘(i) employs at the business entity de-
scribed in subparagraph (A)(ii) not fewer 
than 2 full-time employees who are not the 
borrower or relatives of the borrower; and 
‘‘(ii) pays such employees at a rate 
not less than the minimum wage pre-
scribed by the State in which the business 
entity is located.’’. 
VerDate Sep 11 2014 
22:13 Oct 05, 2016
Jkt 069200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H6250.IH
H6250
mstockstill on DSK3G9T082PROD with BILLS
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 au-
thorized to carry out a program of canceling the obligation 
to repay a qualified loan amount in accordance with sub-
section (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 ending on 
the date of application under this section, has car-
ried out a qualified HUBZone small business con-
cern listed under section 3(p)(5)(B) of the Small 
Business Act, 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. 
VerDate Sep 11 2014 
22:13 Oct 05, 2016
Jkt 069200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H6250.IH
H6250
mstockstill on DSK3G9T082PROD with BILLS
‘‘(2) TREATMENT OF CONSOLIDATION LOANS.— 
A loan amount for a Federal Direct Consolidation 
Loan may be a qualified loan amount for the pur-
poses of this subsection only to the extent that such 
loan amount was used to repay a Federal Direct 
Stafford Loan, a Federal Direct Unsubsidized Staf-
ford 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 for-
giveness under this section on a first-come, first-served 
basis, and subject to the availability of appropriations. 
‘‘(d) RULE OF CONSTRUCTION.—Nothing in this sec-
tion 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. 
VerDate Sep 11 2014 
22:13 Oct 05, 2016
Jkt 069200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H6250.IH
H6250
mstockstill on DSK3G9T082PROD with BILLS
(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 in-
cludes— 
(1) an assessment of the progress of the Sec-
retary 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 in-
crease participation in such program. 
Æ 
VerDate Sep 11 2014 
22:13 Oct 05, 2016
Jkt 069200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6301
E:\BILLS\H6250.IH
H6250
mstockstill on DSK3G9T082PROD with BILLS