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 (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
            (2) 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) received a degree from an institution 
                        of higher education during the 10-year period 
                        ending on the date on which deferment is 
                        granted under paragraph (2)(E);
                            ``(ii) registered at least 1 business 
                        entity 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 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 date on which such deferment is 
                granted, the borrower--
                            ``(i) employs at the business entity 
                        described 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 prescribed by the 
                        State 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 ending on the date 
        of application under this section, has carried out a qualified 
        HUBZone small business concern 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.
            ``(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.
Output: Relief and Investment for Student Entrepreneurs Act or the RISE Act This bill amends the Higher Education Act of 1965 by allowing a qualified entrepreneur with a loan under the William D. Ford Federal Direct Loan program to defer loan payments for up to 3 years. A &quot;qualified entrepreneur&quot; is a borrower who: (1) has received a degree during the 10-year period before the date of the deferment, (2) has at least one registered business entity, (3) has raised capital of not less than $30,000 for such business entity, and (4) has an outstanding loan balance of not less than $5,000.  The Department of Education may cancel up to $17,500 of federal direct and unsubsidized Stafford loans for a borrower who: (1) has operated a small business located in a historically underutilized business zone for at least three years, and (2) is not currently in default on the loan.