One blue state is moving forward with a statewide initiative to support graduate students amid federal cuts to student loan programs. Connecticut legislators propose tapping into the state’s emergency fund to replace the federally funded GradPLUS program, which has recently been diminished under what they have dubbed the “Big Beautiful Bill.”
The GradPLUS program allowed graduate students to borrow up to the full cost of their education, minus $20,500 already available through other federal unsubsidized loans. Connecticut lawmakers now plan to front $20 million through the Connecticut Higher Education Supplemental Loan Authority, a quasi-public agency. Additionally, they may draw up to $10 million from the state’s $500 million emergency reserve fund, originally established in response to cuts in federal funding for health and human services.
Democratic state Representative Gregg Haddad, co-chair of the Higher Education and Employment Advancement Committee, remarked, “The federal government is closing the door on opportunity by canceling the federal GradPLUS loan program, ending an essential program that has allowed thousands of students to afford to earn a graduate degree.” Haddad expressed concerns that the private loan market might not provide suitable options for individuals with no credit history or those hailing from low to moderate-income families.
While the federal GradPLUS program is facing cuts, the Department of Education acknowledges the program’s role in driving “unsustainable student loan borrowing.” This occurred due to its uncapped nature, which allowed universities to raise tuition fees, knowing the government would cover costs through student loans. Despite these changes, graduate students still have access to $100,000 in federal aid for their degrees, while those pursuing professional degrees can borrow up to $200,000.
Haddad emphasized the state’s initiative in contrast to federal actions, stating, “While Washington retreats from their responsibilities, Connecticut is ready to lead.” He believes the proposed solution can help mitigate the impacts of federal cuts on students.
The Connecticut legislative session will formally review the proposal when it begins in February, with changes to the federal student loan program expected to take effect by July 2026. This initiative echoes the ongoing debate about the responsibilities of state versus federal government in supporting education and the fiscal strategies that can be employed to sustain accessibility for students pursuing higher education.
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