1. Short title This Act may be cited as the Supporting America’s Young Entrepreneurs Act of 2017 . 2. Small business start-up employee loan deferment and cancellation (a) Deferment Section 455(f) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(f) ) is amended— (1) in paragraph (1), by striking A borrower of a loan and inserting Except as provided in paragraph (5), a borrower of a loan ; and (2) by adding at the end the following: (5) No interest deferment eligibility for founders of small business start-ups A borrower of a loan made under this part shall be eligible for a deferment, during which periodic installments of principal and interest need not be paid, during any period not in excess of 3 years during which the borrower is employed as a founder of a small business start-up (as defined in subsection (r)(3)). . (b) Loan cancellation Section 455 of the Higher Education Act of 1965 ( 20 U.S.C. 1087e ) is amended by adding at the end the following: (r) Loan cancellation for certain small business start-Up employees (1) Founder of a small business start-up in a distressed area (A) In general The Secretary shall cancel $20,000 of the balance of interest and principal due, in accordance with subparagraph (B), on any eligible Federal Direct Loan not in default for a borrower who— (i) has made 24 monthly payments on the eligible Federal Direct Loan after the date of the enactment of this subsection pursuant to any one or a combination of payments under a repayment plan under subsection (d)(1) or (g); (ii) has been employed as a founder of a small business start-up in a distressed area during the period in which the borrower makes each of the 24 payments; (iii) is employed as a founder of a small business start-up in a distressed area at the time of such cancellation