Raised Bill No. 18 Summary

• Establishes a Student Loan Subsidy Program administered by the Connecticut Higher Education Supplemental Loan Authority to reduce interest rates on authority loans for eligible borrowers effective July 1, 2020.

• Requires borrowers to be employed in Connecticut, commit to living in the state for at least five years, and meet additional eligibility criteria established by the authority and Secretary of the Office of Policy and Management.

• Creates a separate nonlapsing account to hold program funds, including state appropriations and bond proceeds, with moneys expended for loan subsidies and reasonable administration costs.

• Authorizes the State Bond Commission to issue up to $15 million in state bonds to fund the program, with bonds maturing no later than 20 years from their respective dates.

• Empowers the Secretary of the Office of Policy and Management to enter into a memorandum of agreement with the authority to establish administrative guidelines including applicant eligibility, qualifying employment positions, interest rate limits, and residency verification processes.