CT HB05610

Connecticut Higher Education Supplemental Loan Authority must study the feasibility of expanding loan access to borrowers with high debt-to-income ratios, low credit scores, insufficient credit history, or prior loan denials, and compare its underwriting standards and interest rates to other lenders, with a report due by January 1, 2022.

Establishes a working group consisting of legislative leaders, banking officials, higher education representatives, and student loan borrower advocates to assist with the study and recommend improvements to post-secondary education financing access and equity, with the group terminating on January 1, 2022.

Creates the Alliance District Teacher Loan Subsidy Program effective July 1, 2021, to subsidize interest rates on loans for teachers employed in designated alliance districts who meet established eligibility criteria set through a memorandum of agreement between the authority and Commissioner of Education.

Establishes a separate, nonlapsing account for the Alliance District Teacher Loan Subsidy Program to be funded through state appropriations or bond proceeds, with funds used for program operations, loan issuance, and loss reserves.

Expands the definition of "education assistance program" to include any form of financial assistance beyond just education loans and grants, effective July 1, 2021.