Title: Recent Grads in Start-Ups and Innovation Act
Policy area: Education

Summary:
Recent Grads in Start-Ups and Innovation Act
This bill amends the Higher Education Act of 1965 to allow a no-interest deferment of federal student loans for a recent college graduate who owns a small business that has at least one employee other than the owner and is located in a qualified opportunity zone.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6579 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 6579

   To amend the Higher Education Act of 1965 to provide no interest 
  deferment eligibility for certain small business concerns, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 26, 2018

 Mr. Aguilar 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 provide no interest 
  deferment eligibility for certain small business concerns, and for 
                            other purposes.

    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 ``Recent Grads in Start-Ups and 
Innovation Act''.

SEC. 2. NO INTEREST DEFERMENT ELIGIBILITY FOR OWNERS OF CERTAIN SMALL 
              BUSINESSES.

    (a) Amendments.--Section 455(f)(2) of the Higher Education Act of 
1965 (20 U.S.C. 1087e(f)(2)) is amended--
            (1) by striking ``or'' at the end of subparagraph (C);
            (2) by striking the period at the end of subparagraph (D) 
        and inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(E) not in excess of 4 years during which the 
                borrower is the owner of a small business concern (as 
                defined in section 3 of the Small Business Act) that--
                            ``(i) has at least one employee other than 
                        the owner; and
                            ``(ii) has its principal place of business 
                        located in a qualified opportunity zone (as 
                        defined in section 1400Z-1 of the Internal 
                        Revenue Code of 1986).''.
    (b) Effective Date.--The amendments made by this section shall take 
effect 1 year after the date of enactment of this Act.

SEC. 3. REPORT.

    (a) In General.--Not later than 1 year after the first deferment is 
granted under section 455(f)(2)(E) of the Higher Education Act of 1965 
(20 U.S.C. 1087e(f)(2)), as added by this Act, the Secretary of 
Education, in coordination with the Small Business Administration, 
shall submit a report to Congress on--
            (1) the number of recent college graduates who applied to 
        receive a deferment under such section, disaggregated by--
                    (A) the number of such individuals who were granted 
                such a deferment; and
                    (B) the number of such individuals who were not 
                granted such a deferment;
            (2) a description of the recent college graduates who were 
        granted such a deferment, disaggregated by--
                    (A) the demographic information of the graduate;
                    (B) the type of small business concern for which 
                the deferment was granted;
                    (C) the location of the small business concern;
                    (D) the number of jobs created by the small 
                business concern; and
                    (E) any relevant information on the growth of the 
                small business concern; and
            (3) recommendations to improve or create more awareness of 
        such deferment program.
    (b) Definition.--In this section:
            (1) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 102 of the Higher Education Act of 1965 (20 
        U.S.C. 1002).
            (2) Recent college graduate.--The term ``recent college 
        graduate'' means an individual who has been a graduate of an 
        institution of higher education with an associate or 
        baccalaureate degree for not more than 2 years.
            (3) Small business concern.--The term ``small business 
        concern'' has the meaning given under section 3 of the Small 
        Business Act (15 U.S.C. 632).
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