Connecticut is launching a new Student Loan Reimbursement Program to help alleviate some borrowers’ stress and payment woes.
While student loans nationwide remain in limbo, Connecticut lawmakers aim to relieve some of its nearly 500,000 residents with significant debt. The program will allocate $6 billion to help up to 100,000 borrowers in its first year of operation. The initiative will launch on Jan. 1, 2025, starting a five-year plan to reduce student loan debt in the state.
“We today, may not seem like a lot, but we’re putting Connecticut back on the right track and closing the cap on disparities,” said Rep. Corey Paris, Stamford’s 145th District representative, as reported by News12.
Eligibility is based on multiple criteria, including being a resident of the northern state for at least five years. Other requirements include graduating from a Connecticut state college or university, whether public or private. However, those who did not obtain their degrees from these institutions can also apply. This includes students who left in good standing and were granted a hardship waiver by the state’s Office of Higher Education.
tom-banner ampforwp-incontent-ad2">According to Marca, these requirements could help eliminate around $147 million in debt, a number reportedly held by just a few thousand borrowers who attended these schools. Furthermore, students who received an occupational or professional license, including certifications, can also enroll.
The reimbursement program seeks to help Connecticut residents from lower-economic backgrounds. Single borrowers with an adjusted gross income of $125,000 or less can participate. Despite this, married couples making up to $175,000 will remain eligible. All applicants must also have made payments toward their loans in 2024, with balances still remaining.
Lastly, the program wants to ensure enrolled borrowers have contributed to their communities. They require at le
ast 50 hours of volunteer work at a Connecticut nonprofit organization. However, those who have served in municipal governments or the military during the past year can use this work as an alternative.As a Trump presidency and less emphasis on student loan forgiveness draw near, states such as Connecticut are taking matters into their own hands to provide relief to their residents. Those who meet all the requirements can prepare for enrollment by creating an account on the CT SCHOLARS portal.
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