Student debt is a crippling challenge with borrowers owing a staggering $1.7 trillion nationwide. In Connecticut, residents hold an estimated $18 billion of that share, according to the Education Data Initiative.
Borrowers burdened by the challenges of high student loan debt could find relief through a new $6 million state program launched Jan. 1. The program could help a small number of those residents get up to $5,000 a year, for up to four years.
As of Jan. 2, the state already received 345 applications through the online database, according to a statement from the Connecticut Office of Higher Education.
The state assistance, which is backed by national pandemic relief dollars, comes as the future of federal loan forgiveness hangs in the balance. President Joe Biden’s continued student loan promises are already in legal jeopardy and the White House has begun pulling back unfinished loan cancellation rules, weeks before president-elect Donald Trump will take office.
Connecticut lawmakers approved the new reimbursement program during the 2024 legislative session. American Rescue Plan Act (ARPA) money, which had to be assigned by the end December, was used to fund it. The program will run as long as the $6 million in funding is available.
State officials say applications are being accepted on a first-come-first-serve basis. In a statement, the Connecticut Office of Higher Education said it “has responded to hundreds of emails from potential applicants with questions regarding eligibility requirements and navigating the electronic application portal.” Here’s what to know.
How to qualify: residency, service and more
Borrowers must be current Connecticut residents, and have lived in the state for at least five consecutive years. Eligible people must also have attended a university or college in the state, and hold either an associate or bachelor’s degree from that school, professional license or have left with good academic standing.
Single applicants must have a gross income of less than $125,000 in 2023. Married applicants can’t have a gross income of over $175,000.
There’s also a service component: eligible borrowers must have proof of volunteering at least 50 hours at a Connecticut non-profit in 2024. That includes military service, municipal government work or serving on a nonprofit’s board of directors.
Learn more
The program begins less than a month after Connecticut appointed a long-anticipated student loan ombudsperson to help borrowers in the state.
Applications for reimbursement program can be filed through the Connecticut Office of Higher Education’s website.
