3 days ago
Student Loan Update: Hundreds May Be Eligible for Up to $20K Reimbursement
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Student loan borrowers in Connecticut could be eligible for up to $20,000 in credits through the state Student Loan Reimbursement Program, with the new application process launching on Friday.
Newsweek reached out to the Connecticut Office of Higher Education for comment via email on Thursday.
Why It Matters
Connecticut's expanded Student Loan Reimbursement Program targets residents with outstanding student debt while aiming to retain and support the state's workforce by paying a portion of borrowers' loans directly, a move state officials described as an investment in local communities and talent retention.
Nationwide, more than 40 million Americans have student loans. According to a report by credit bureau TransUnion, some 1 million borrowers were projected to enter default in August—meaning they will become subject to federal collections, as well as dented credit scores.
Student loan borrowers gather near the White House to urge the cancellation of student debt on May 12, 2020, in Washington.
Student loan borrowers gather near the White House to urge the cancellation of student debt on May 12, 2020, in We, The 45 Million
What To Know
The Student Loan Reimbursement Program provides up to $5,000 per year for up to four years, for a maximum of $20,000 per eligible borrower, and the Office of Higher Education administered the program. Applications can be submitted starting Friday, after the 2025 General Assembly amended the program and signed the changes into law.
Key Eligibility Requirements for Connecticut's Program
Applicants must be Connecticut residents for at least five consecutive years.
Applicants should have an outstanding student loan balance and have made a qualifying payment in 2024.
Applicants need to have graduated from a Connecticut college or university, or attended an accredited program to earn a professional license or certificate; a hardship waiver for degree non-completion could be requested in certain cases.
Income limits apply: $125,000 for individuals and $175,000 for married applicants.
Applicants must have completed 50 hours of verified volunteer service since January 1, 2024, at qualifying nonprofits, municipal agencies or through military service.
The application opens through the CT SCHOLARS portal beginning August 15.
What People Are Saying
Connecticut Governor Ned Lamont, a Democrat, in a statement reported local station News 8 WTNH: "We're proud to reopen the doors to this impactful program. This is not just a reimbursement plan—it's a strategic investment in our workforce, in our communities, and in the future of Connecticut. The adjustments made this year reflect our ongoing commitment to supporting those who choose to build their lives and careers right here in our state."
Noele Kidney, director of communications, Office of Higher Education, told CT Mirror: "It's an investment in people who want to stay in Connecticut, who go to college here, who attend school here and who stay here and work here."
Timothy Larson, commissioner of the Connecticut Office of Higher Education, in a statement reported by the Norwich Bulletin: "This expansion ensures that we are reaching more of the hardworking Connecticut residents who need relief. The enhancements, combined with a streamlined application process, reflect our commitment to making education more affordable and accessible."
What Happens Next
Officials said the Office of Higher Education would process applications through the CT SCHOLARS portal on a first-come, first-serve basis until funds are exhausted or through the December review window announced by state officials.
