The program to support graduate programs in fields such as physical therapy, social work, and nursing, was championed by State Sen. Derek Slap (D-West Hartford), co-chair of the Higher Education and Employment Advancement Committee, along with several House members.

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In response to sweeping federal changes to graduate student lending in the federal budget, State Sen. Derek Slap (D-West Hartford), and state Reps. Gregg Haddad and Kaitlyn Shake, announce the approval of legislation dedicating $30 million to establish the nation’s first state-level graduate student loan program. The funding and implementing language were embedded in SB1.

The initiative is designed to take the place of the federal Graduate PLUS loan program, which is being eliminated by the Trump administration, and to ensure Connecticut students can continue to afford advanced degrees in critical, high-demand fields, such as nursing and teaching.

For the entire legislative session, Sen. Slap and Rep. Haddad – co-chairs of the Higher Education and Employment Advancement Committee – and Rep. Shake, a registered nurse, championed urgent and bold state action following federal policy changes adopted under the Trump administration.

These changes include federal loan caps that sharply restrict borrowing for graduate students. Beginning in July, new students in graduate programs face limits of just $20,500 per year (or $100,000 total). Notably, despite requiring extensive training and licensure, nursing, public health, social work, education, and other essential fields have been excluded from the “professional” designation that has been granted higher loan limits. However, these degree programs often cost more than the limits.

Compounding the issue, the federal government is eliminating the Graduate PLUS loan program entirely – forcing many students to turn to private lenders with uncertain terms and limited accessibility, particularly for those without established credit or from low- and moderate-income backgrounds. Grad PLUS loans had been critical to cover the cost of degree programs in excess of the new limits.

Connecticut has stepped in to fill the void in leadership and to provide low-interest loans that ensure the next generation of professionals – our educators, our health care providers – can attend graduate school, free from high-cost private loans.

It’s an investment in a workforce that benefits communities statewide.

“The creation of a grad student loan program will help thousands of teachers, nurses, social workers and other professionals who have seen their access to low interest loans slashed thanks to the Trump administration and national Republicans,”Slap said. “I’m so pleased Connecticut is stepping up especially at a time when we have such shortages of workers in these fields.”

“Connecticut is the first state in the nation to act to protect the workforce pipeline for dozens of occupations that require advanced graduate degrees,” Haddad said. “Teachers, nurses, social workers and physical therapists are just a few of the jobs that often require advanced degrees and we have helped students preparing for these jobs by passing this landmark program.

“President Trump ended the federal Grad PLUS loan program, which currently provides CT students with $90 million of federally subsidized loans. Grad students are scrambling to find affordable student loans as they pursue their education. I’m proud to work with my colleagues to answer the threat with an affordable state solution,” added Haddad.

“The Federal Department of Education’s November 2025 announcement to declassify certain professional degrees eligible for Federal Graduate Student Loans, has been a major concern for me and was a legislative priority as we transitioned into the 2026 session,” Shake said. “In anticipation of a final decision that would exclude predominantly women and people of color seeking higher education to pursue their professional dreams, Connecticut didn’t hesitate to act – we took action as the first in the nation to combat this harmful policy change impacting students’ long-term economic security and Connecticut’s workforce.

“I am incredibly thankful and proud of the diverse coalition of professional and union organizations that worked alongside Rep. Haddad, Senator Slap, and me in advocating for a substantial increase in CHESLA funding. As the chaos around public education in Washington, D.C., continues, Connecticut’s recent passage of the state budget reaffirms our commitment to graduate students and our future workforce.”

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