Presumptive Democratic presidential nominee Hillary Clinton rolled out a new technology and innovation agenda in Denver, Colorado, a hub for innovation. Denver by many has been named the new start up capital of the country.
While Clinton touched on how to encourage innovation, she also spoke about helping ease the student loan debt burden on entrepreneuers.
1. Put Federal Loans Into a Special Status
Clinton said that for those who start businesses, she'll put their student loans into a special status. This way graduates can defer student loan payments while they get their new ventures up and running. The plan would allow for entrepreneurs to defer making any payments for three years--zero interest and zero principal.
2. Defer Payments For Employees of Start Ups
Clinton believes that not only should entrepreneurs receive a special loan status, but also that some of their early employees should. Her plan proposes that the first ten or 20 employees of a new venture should also receive a special status on their student loans to defer payments.
3. Offer Loan Forgiveness For Entrepreneurs in Distressed Communities
Clinton's plan proposes that for young innovators who set up shop in distressed communities, she will offer forgiveness after five years for student loans of up to $17,500. Enterprises that provide measurable social impact and benefit are also included under the proposal.
Andy Josuweit, the CEO of Student Loan Hero, says that the biggest questions to ask about this plan are who will foot the bill and will this appeal to student loan borrowers.