If you live in Connecticut and still have student loan debt, there is some good news that could take a serious weight off your shoulders. The state has reopened and expanded its Student Loan Reimbursement Program, and for eligible residents, the benefit could be worth as much as $20,000.
This is not just a one-time payment—it is a plan to help you pay down your loans while encouraging graduates to stay and work in Connecticut. If you meet the requirements, the state will send payments directly toward your student loan balance over several years.
What is the Connecticut student loan reimbursement program?
The program is designed to give qualifying Connecticut residents up to $5,000 per year for four years, for a maximum of $20,000. The payments go directly toward your outstanding student loan balance, not into your bank account, so the money immediately reduces what you owe.
It is run by the Connecticut Office of Higher Education and has a funding pool of $4.7 million. That means the sooner you apply, the better your chances of getting in before the money runs out.
Read more: What is the monthly payment on a $140,000 Student Loan?
Who can qualify for up to $20,000 in loan reimbursement?
Not every borrower will qualify. For you to be eligible, here are some requirements you must follow:
- Residency: You must have lived in Connecticut for at least five consecutive years.
- Outstanding loans: You must still have a student loan balance and have made at least one qualifying payment in 2024.
- Education: You must have graduated from a Connecticut college or university, or attended an accredited program that led to a professional license or certificate. If you did not complete your degree, you may request a hardship waiver in certain cases.
- Income: Your income must be under $125,000 if you file as an individual, or under $175,000 if you are married and file jointly.
- Service requirement: You are expected to complete 50 hours of verified volunteer service since January 1, 2024. This can be through a qualifying nonprofit, a municipal agency, or military service.
How much money can you get?
The maximum you can get is $20,000. However, the amount you receive depends on how long you stay in the program and how much debt you have. The program pays up to $5,000 per year for four years.
For example:
- If you have $12,000 left on your loans, the program could cover your entire balance in less than four years.
- If you owe more than $20,000, you would still be responsible for the remaining balance after the program ends.
How and when to apply
Applications open August 15 through the CT SCHOLARS portal. The process is first-come, first-served, so it is important to apply early. You will need to submit:
- Proof of Connecticut residency for the past five years
- Student loan account information
- Verification of your volunteer service hours
- Income documentation
The Office of Higher Education will process applications until either all the funds are used or until the end of the December review period.
Why the state is offering this program
Connecticut leaders see this as more than just debt relief. It is a way to keep skilled graduates in the state.
Governor Ned Lamont said, “This is not just a reimbursement plan—it’s a strategic investment in our workforce, in our communities, and in the future of Connecticut.”
Noele Kidney from the Office of Higher Education added, “It’s an investment in people who want to stay in Connecticut, who go to college here, who attend school here and who stay here and work here.”
By reducing the burden of student loans, the state hopes more graduates will choose to build their careers—and their lives—right here.
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