Connecticut’s largest college student loan program is lending money at the lowest interest rate in its 35-year history.
The quasi-public Connecticut Higher Education Supplemental Loan Authority said its “MyChesla” loans for the 2020-2021 academic year will have a fixed interest rate of 4.85%, which is down 10 basis points from the previous record low of 4.95%.
The low rates come several months after the U.S. Federal Reserve, seeking to bolster the national economy amid the COVID-19 pandemic, cut its federal funds and discount rates to near zero. Federal student loan interest rates also stand at record lows.
The loans are for students who attend eligible institutions in Connecticut, as well as for Connecticut residents who attend schools elsewhere.
CHESLA’s student loan program has originated more than 52,000 loans totaling $512 million since it was founded in 1985. It originated 1,337 loans last fiscal year.
