U.S. Sen. Maggie Hassan of New Hampshire is sponsoring legislation aimed at helping ease the student debt burden for young entrepreneurs.
Hassan on Wednesday introduced a bill that will allow the founders and full-time employees of some small business startups to have their federal student loan payments and interest accrual deferred for up to three years while launching their business. Those who start businesses in economically distressed areas could be eligible for cancellation of up to $20,000 in student loans after making 24 monthly payments.
The debt relief will be available for startups certified by Small Business Development Centers.
Hassan, a first-term Democrat, says as student debt has increased, the number of young entrepreneurs has declined. She says relieving that debt burden is key to keeping the economy growing.