CT SB00932

Connecticut Higher Education Supplemental Loan Authority shall establish an Alliance District Teacher Loan Subsidy Program effective July 1, 2021, to subsidize interest rates on authority loans for teachers employed in alliance districts.

Authority shall enter into a memorandum of agreement with the Commissioner of Education to establish eligibility criteria, interest rate subsidy amounts, principal limits, employment verification processes, and employment requirement conditions for subsidy recipients.

Subsidies terminate if a recipient ceases to meet employment requirements during the loan term.

A separate, nonlapsing account shall be created to hold program funds from state appropriations and bond proceeds, with moneys used for subsidies, administrative expenses, and reserves to cover losses from refinancing eligible loans.

State Bond Commission may authorize up to seven million dollars in bonds annually to fund the program, with bonds maturing within twenty years and backed by the full faith and credit of the state.