Officials in Connecticut Propose New Graduate Student Loan

""The Grad PLUS program historically has had very little credit check, so it's been accessible to students of all credit qualities," Hurlock said. "So, with the program going away ... we want to make sure that students and schools have financing options available for their graduate students, and students and schools need to know what's available sooner rather than later as we approach the fall semester.""

"The program would require $30 million in funding for its first year, based on calculations that students in Connecticut take out between $90 million and $100 million in Grad PLUS loans annually. (Those already receiving the loans will be grandfathered in.) Two-thirds of that would come from a bond that CHESLA will issue, while the remaining $10 million would have to come from state allocations."

The One Big Beautiful Bill Act eliminated the federal Grad PLUS program, reducing a key financing option for graduate students. Connecticut lawmakers, led by Rep. Gregg Haddad, proposed a new state-level loan program open to any graduate student enrolled in the state. CHESLA plans to administer the program and aims to launch it in time for the 2026–2027 academic year. The initial funding need is estimated at $30 million, reflecting $90–$100 million in annual Grad PLUS borrowing by Connecticut students. Two-thirds of funding would come from a CHESLA bond and $10 million from state allocations; current borrowers will be grandfathered in.

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