CT HB05437

Connecticut Higher Education Supplemental Loan Authority shall establish a Student Loan Subsidy Program to subsidize interest rates on authority loans for employed first responders, effective July 1, 2023.

The authority must establish eligibility criteria and administrative guidelines including applicant eligibility, interest rate subsidy amounts, principal loan limits, employment verification processes, and requirement that subsidies terminate if recipients cease first responder employment.

A separate, nonlapsing account shall be maintained to hold program funds from state appropriations and bond proceeds, with moneys expended for subsidies and reasonable administrative expenses.

State Bond Commission is authorized to issue up to $7 million in bonds annually to fund the Student Loan Subsidy Program, with bonds maturing within 20 years and backed by the full faith and credit of Connecticut.

All bond provisions follow section 3-20 of general statutes, with temporary notes authorized in anticipation of bond sale proceeds, and the State Treasurer required to pay principal and interest as due.