What's Happening?
Connecticut lawmakers, led by Rep. Gregg Haddad, have proposed a new state-level student loan program to address the gap left by the elimination of the federal Grad PLUS loans. This initiative comes in response
to the One Big Beautiful Bill Act (OBBBA) signed by President Trump, which overhauled federal student loans and eliminated the Grad PLUS program. The proposed state program aims to provide financial support to graduate students in Connecticut, ensuring they can continue their education despite the federal cuts. The Connecticut Higher Education Supplemental Loan Authority (CHESLA) plans to launch the program for the 2026-2027 academic year, requiring $30 million in funding for its first year. The funding will be sourced from a combination of state allocations and bonds issued by CHESLA.
Why It's Important?
The elimination of Grad PLUS loans under the OBBBA has raised concerns about access to graduate education, particularly for middle- and low-income students. The proposed Connecticut loan program is crucial as it seeks to maintain educational opportunities in fields like medicine, nursing, and education, which are vital for the state's workforce. By providing an alternative to federal loans, Connecticut aims to prevent a potential shortage of skilled professionals in critical sectors. The initiative also highlights the importance of state-level interventions in ensuring educational access and addressing workforce needs, especially in light of federal policy changes that could limit educational opportunities.
What's Next?
The proposed loan program is expected to be discussed in the upcoming legislative session in February. Lawmakers and stakeholders, including educators and healthcare professionals, have shown strong support for the initiative. If approved, the program will be implemented in time for the 2026-2027 academic year, providing a much-needed financial lifeline for graduate students in Connecticut. The success of this program could serve as a model for other states facing similar challenges due to federal loan restrictions.
