by Connecticut student loan borrowers could be eligible for up to $20,000 in credits under the state’s Student Loan Reimbursement Program, with a new application process opening Friday, August 15.
A spokesperson for the Connecticut Office of Higher Education confirmed the program currently has a budget of $4.7 million. If divided into the maximum $20,000 benefit, that would cover about 235 borrowers. However, the final number will depend on how much each applicant qualifies for and how many apply. The reimbursements will be paid in installments over four years.
Why the Program Matters
The expanded program is designed to ease student debt while also encouraging graduates to stay in Connecticut’s workforce. Officials describe it as both a financial relief measure and an investment in the state’s communities and talent retention.
Nationwide, the student debt crisis continues to loom large. More than 40 million Americans hold student loans, and according to a report by credit bureau TransUnion, about 1 million borrowers were projected to fall into default in August—potentially facing federal collections and damaged credit scores.
How the Program Works
The Student Loan Reimbursement Program provides up to $5,000 per year for four years, totaling a maximum of $20,000 per borrower. It is administered by the Office of Higher Education, which will review applications submitted through the CT SCHOLARS portal.
The program was expanded under legislation passed by the 2025 General Assembly and signed into law earlier this year.
Who Is Eligible
Applicants must meet several requirements:
- Be a Connecticut resident for at least five consecutive years.
- Hold an outstanding student loan balance and have made a qualifying payment in 2024.
- Have graduated from a Connecticut college or university, or completed an accredited program for a license or certificate. (A hardship waiver may apply if the degree was not completed.)
- Meet income limits: $125,000 for individuals, $175,000 for married couples.
- Complete at least 50 hours of verified volunteer service since January 1, 2024, at a nonprofit, municipal agency, or through military service.
What’s Next for Borrowers
Applications will open on August 15 via the CT SCHOLARS portal and will be processed on a first-come, first-served basis until the $4.7 million fund is depleted. A secondary review window is scheduled for December if funds remain.
