Gov. Ned Lamont is proposing the creation of a state loan program to help Connecticut residents finance graduate education, citing upcoming federal student lending changes that will reduce borrowing limits for many academic programs.
The proposal, submitted to the General Assembly, would establish the Connecticut Supplemental Graduate Student Loan Program, a state-supported option offering low-interest loans to eligible students. The program would be administered by the Connecticut Higher Education Supplemental Loan Authority, which provides financing programs for post-secondary education.
State officials said the program is intended to preserve access to affordable loans for graduate students, particularly those pursuing degrees in nursing, social work and physical therapy, fields expected to be affected by the federal changes.
The initiative is framed as a response to the One Big Beautiful Bill Act, a federal law enacted last year that revises borrowing rules for graduate and professional students. Beginning July 1, 2026, annual and lifetime loan caps will vary based on how the U.S. Department of Education classifies degree programs.
Under the new limits, students in programs designated as professional degrees may borrow up to $50,000 annually, with a $200,000 lifetime cap. Students in programs categorized as graduate degrees are limited to $20,500 per year, with a $100,000 aggregate cap.
Several health-related fields, including nursing, social work and physical therapy, fall under the graduate classification and are subject to the lower borrowing limits, according to Lamont’s office. The federal law also eliminates Graduate PLUS loans for new borrowers.
Lamont’s proposal authorizes $10 million in bonding to launch the program. The measure, Senate Bill 85, is under review by the legislature’s Finance, Revenue and Bonding Committee.
