[Congressional Record Volume 163, Number 58 (Tuesday, April 4, 2017)]
[Senate]
[Page S2367]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. HASSAN:
  S. 848. A bill to amend the Higher Education Act of 1965 to encourage 
entrepreneurship by providing loan deferment and loan cancellation for 
founders and employees of small business startups, and for other 
purposes; to the Committee on Health, Education, Labor, and Pensions.
  Ms. HASSAN. Mr. President, I rise today to introduce my first bill in 
the U.S. Senate--a bill to help relieve the burden of student debt for 
young entrepreneurs from New Hampshire and the entire country.
  Most of us have seen personally how heavily the burden of student 
loan debt weighs on students and families across New Hampshire. Less 
visible, but no less important, is how student loan debt is weighing 
down our economy--stifling innovation and job creation.
  Student loan debt is preventing the next generation of entrepreneurs 
and innovators from opening their own businesses. A New York Times 
report highlighted that the percentage of new entrepreneurs between 20-
34 years old fell to 25 percent in 2014, down from almost 35 percent in 
1996. And Gallup found that 19 percent of graduates with student loan 
debt say they have delayed starting a business because of it.
  It is time to once again unleash the entrepreneurial potential of our 
young people into creating the jobs of the future. That is why this 
week I introduced the Reigniting Opportunity for Innovators, ROI, Act, 
the first bill I am writing as a U.S. Senator, which would help provide 
the relief necessary for young entrepreneurs to start up and grow 
innovative small businesses.
  The ROI Act will allow eligible founders and full-time employees of 
certified small business to defer their Federal student loan payments 
and interest accrual for up to 3 years while launching a startup. This 
will help give graduates the financial stability they need to take the 
risk of starting a business that can create good-paying jobs.
  Additionally, this legislation provides an additional incentive for 
startup companies to move off the beaten path to help revitalize 
struggling communities. If the startup is located in an economically 
distressed area, founders and employees will be eligible for 
cancellation of up to $20,000 in student loans.
  The ROI Act is an important step that we can take now to help young 
entrepreneurs and lay the foundation for a new generation of economic 
growth.
  New businesses are historically the top job creators in our country, 
and small businesses are the driving force of New Hampshire's economy. 
But to get the education they need to compete for jobs in the 21st 
century economy, students are taking on more debt than ever before. In 
2015, college graduates left school with an average of $30,000 of 
student loan debt, and New Hampshire students had the highest average 
student debt in the country.
  At a roundtable discussion at Keene State College, I heard from 
students about the challenges posed by their student loan debt. One 
young woman told me that she hoped to start her own business but that 
she would likely have to put off that goal for another 10 years because 
of her student loan debt.
  Any entrepreneur will tell you that getting a small business off the 
ground is expensive. These costs, mixed with student loan debt, make it 
even more daunting for young entrepreneurs to consider taking the leap 
of starting a new business. Student debt decreases the cash flow of 
potential entrepreneurs, it hurts their ability to build equity, and it 
can negatively affect credit scores and their ability to secure 
financing.
  With the deck too often stacked against them, we need to be doing 
everything we can to support young entrepreneurs looking to start the 
innovative businesses that will drive job-creation and move our economy 
forward.
  The ROI Act would work to drive our 21st century economy, but we know 
that we have more work to do to bring down the costs of higher 
education and ensure that New Hampshire students, families, and 
innovative businesses have the support they need. In addition to 
working to pass this commonsense legislation, I will continue to focus 
on expanding Pell grants, lowering interest rates for student loans and 
allowing students to refinance, and increasing apprenticeship and job 
training opportunities.
  The ROI Act is an important step that we can take now to help young 
entrepreneurs and lay the foundation for a new generation of economic 
growth, and I look forward to working with members of both parties to 
pass this commonsense bill.
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