Connecticut Proposes State Loan Program for Graduate Students

New state-run program aims to replace federal loans for certain degree programs.

Published on Feb. 13, 2026

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Governor Ned Lamont has proposed a new state-run graduate student loan program called the Connecticut Supplemental Graduate Student Loan Program. This program would replace federal loans for students pursuing degrees in fields like nursing, physical therapy, social work, and education. The $10 million program would be administered by the Connecticut Higher Education Supplemental Loan Authority (CHESLA) and aims to ensure access to affordable graduate education, especially for lower and middle-income students.

Why it matters

The proposal comes in response to recent federal changes that limit the types of graduate degrees eligible for higher-limit, lower-interest federal student loans. This has raised concerns that the changes could make graduate education less accessible, especially for students pursuing degrees in healthcare, education, and social services fields.

The details

The state loan program would provide continued access to low-interest loans for graduate students in fields like nursing, physical therapy, social work, and education. These programs were previously eligible for higher federal loan limits but will now face stricter $20,500 annual and $100,000 total limits under the federal changes. The state program aims to fill this gap and ensure affordability for students in these high-demand fields.

  • The federal changes to graduate student loans are set to take effect in July 2026.
  • Governor Lamont introduced the state loan program proposal in February 2026.

The players

Governor Ned Lamont

The governor of Connecticut who proposed the new state graduate student loan program.

Connecticut Higher Education Supplemental Loan Authority (CHESLA)

A quasi-public state authority that would administer the new state graduate student loan program.

Alisha Morrell

A registered nurse and member of the AFT University Health Professional union who criticized the federal changes.

Corey Moses

Vice President of the Hartford Federation of Teachers who said the federal loan caps leave prospective educators asking 'Do I wish to make a change or make a living?'

Jennifer Jackson

CEO of the Connecticut Hospital Association who celebrated the governor's proposal as recognizing the need to grow the healthcare workforce.

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What they’re saying

“For decades, lower and middle-income students have depended on these low-interest loans to seek careers in good-paying professions, and now these recent federal changes are going to make graduate programs out of reach for many students who dream of pursuing a graduate degree.”

— Governor Ned Lamont (Press release)

“When the same politicians who called us heroes during COVID now say nursing isn't a profession, it's a slap in our face.”

— Alisha Morrell, Registered nurse and AFT University Health Professional union member (Video with Code Red CT)

“Mounting costs of education, living expenses and life choices make this vocation more and more difficult without funding and adequate resources to combat the shortages and answer the call. This deprofessionalization hits at the core that everyone should be able to follow a dream and be economically prosperous. Educators in this vocation took on a vow of charity and not poverty.”

— Corey Moses, Vice President of Hartford Federation of Teachers (Press conference)

“The governor's proposal recognizes what is at stake and will help mitigate some immediate impacts on current and aspiring providers. It also serves as an important reminder that sustained, long-term solutions are essential to ensure Connecticut can continue to educate, recruit and retain the compassionate, highly skilled health care workforce on which our communities depend.”

— Jennifer Jackson, CEO of the Connecticut Hospital Association (Press release)

“This is what good policy should do: Recognize a real need and respond in a way that strengthens people and communities. Expanding [CHESLA] simply allows that program to do what it was built to do: help people who learn here, build their lives here and give back to Connecticut without being crushed by cost.”

— Elizabeth Higgins, Registered nurse and University Health Professionals member (Press conference)

What’s next

The proposal is currently under review by the Finance, Revenue, and Bonding Committee, and a public hearing is expected to be scheduled in the next few weeks.

The takeaway

This state-level initiative aims to maintain access to affordable graduate education, especially in high-demand fields like healthcare and education, in the face of federal changes that could make graduate degrees less accessible for many students. It highlights the importance of state-level policy solutions to address gaps created by federal policy shifts.