CHESLA prepares to launch a state-based graduate loan program to support students amid federal Graduate PLUS changes

HARTFORD, CT / ACCESS Newswire / March 4, 2026 / Graduate and professional students across Connecticut are facing a period of uncertainty. With the federal Graduate PLUS loan program being eliminated, many students pursuing advanced degrees are left wondering how they will finance the final steps of their education. For future nurses, social workers, teachers, researchers, and other professionals, reliable access to graduate financing is not a luxury - it is essential to completing the credentials that power Connecticut's workforce.

A new solution is on the horizon.

The Connecticut Higher Education Supplemental Loan Authority (CHESLA) is preparing to launch a state-based graduate loan program designed to ensure continuity of access to affordable, fixed-rate financing for Connecticut students. This program is being developed in response to the changing federal landscape and reflects Connecticut's longstanding commitment to supporting higher education and workforce development.

For over four decades, CHESLA has provided fixed-rate education loans, scholarships, and financial literacy resources to help students and families make informed, responsible decisions. The forthcoming graduate loan program builds on that foundation. It will leverage CHESLA's existing lending infrastructure and bonding authority, allowing the Authority to implement a cost-effective and efficient solution without creating new administrative structures.

The goal is straightforward: to provide graduate students with a stable, transparent alternative to higher-cost private lending options. By offering fixed interest rates and borrower-focused terms, the program is intended to reduce uncertainty during enrollment decisions and help students avoid excessive borrowing costs over time.

Borrowers will also benefit from flexible repayment structures designed to accommodate varying financial circumstances during and after enrollment. The program is expected to offer 5-, 10-, and 15-year repayment terms, along with multiple in-school repayment options. Students may choose interest-only payments while enrolled, full deferment of principal and interest until after graduation, or immediate repayment of both principal and interest. This range of options allows borrowers to align repayment with their personal financial situation while maintaining clarity about long-term costs.

In its initial phase, the program is expected to support hundreds of Connecticut graduate students, with the capacity to expand as demand and performance are evaluated. The structure reflects a fiscally responsible approach, combining state-level support with CHESLA's existing financing capacity to maximize impact while maintaining prudent oversight.

This initiative also represents something larger. As federal loan options evolve, states have an opportunity to take measured, thoughtful steps to protect access to higher education. Connecticut is positioned to be among the first to implement a structured, state-level response to the elimination of Graduate PLUS - demonstrating that proactive planning can preserve opportunity and strengthen workforce stability.

Advanced degrees remain critical in fields that serve our communities every day - from healthcare and education to public service and research. Ensuring that students can finance those degrees responsibly is an investment not only in individual success, but in Connecticut's economic future. More details will be shared in the months ahead. Please visit https://www.chesla.org/ for the latest updates and information.

Sincerely,

Josh Hurlock
Deputy Director
Direct (860) 761-8482
1 Financial Plaza, 20^th Floor, Suite #2000
Hartford, CT 06103

SOURCE: CHESLA