Nursing, Social Work Grad Students Could Get Student Loan Help Under Proposed CT Program

by Staff Report

Credit: Stephan Marquardt / Shutterstock

HARTFORD, CT — In response to the recent overhaul of the federal student loan system, Connecticut may adopt legislation establishing a state Supplemental Graduate Student Loan Program.

The proposal, which Gov. Ned Lamont submitted to the Connecticut General Assembly as Senate Bill 85, aims to ensure that students in Connecticut seeking graduate degrees continue to have access to low-interest loans that cover their tuition, especially those seeking nursing, social work, and physical therapy graduate degrees, which are among the professions that will be particularly impacted by the recent federal changes.

As of Feb. 5, the bill had been referred to the Joint Committee on Finance, Revenue and Bonding and a public hearing is expected in the coming weeks.

“For decades, lower and middle-income students have depended on these low-interest loans to seek careers in good-paying professions, and now these recent federal changes are going to make graduate programs out of reach for many students who dream of pursuing a graduate degree,” Lamont said. “I’m particularly concerned that these new federal changes are going to make it even harder for students to seek graduate degrees in areas such as nursing, social work, and physical therapy, when we actually should be doing more to encourage people to enter these fields. Creating this loan program at the state-level is a way that we can help ensure that the opportunity for people to seek graduate degrees is still obtainable and not only for those whose families have the means.”

In July, President Donald Trump signed the One Big Beautiful Bill Act into law, which establishes new limits on how much graduate students can take on in federal student loans based on whether the degree program is categorized by the U.S. Department of Education as a “graduate” or “professional” program.

Under these new caps, which take effect July 1, 2026, students pursuing a “graduate” degree will now only be able to borrow only half of what students pursuing a “professional” degree can. Specifically, students pursuing a “professional” degree will be able to borrow $50,000 annually, or $200,000 in total, while students pursuing a “graduate” degree will be able to borrow $20,500 annually or $100,000 total.

In November, the U.S. Department of Education released its definition of programs it will classify as “professional.” That definition includes pharmacy, dentistry, veterinary medicine, chiropractic, law, medicine, optometry, osteopathic medicine, podiatry, and theology. Notably, the definition does not include nursing, social work, and physical therapy programs, among others, meaning that these degrees will be defined as “graduate” and subject to the lower borrowing caps, which are unlikely to cover the full costs of tuition.

In addition to these changes, the One Big Beautiful Bill Act eliminates Graduate PLUS loans for new borrowers. Graduate PLUS was the sole program dedicated to helping graduate and professional students finance the whole cost of attendance for their education.

The proposed Connecticut program will be administered by the Connecticut Higher Education Supplemental Loan Authority (CHESLA), the existing entity that provides Connecticut students with cost-effective financing programs for post-secondary education, according to Lamont’s office. The proposal allocates $10 million in bonding to launch the program.

In response to the proposal, the Connecticut Hospital Association issued a statement saying the bill shows Connecticut stands with healthcare workers and supports opportunities for growth, advancement and service to others.

“At a time when the need to nurture and grow the healthcare workforce has never been greater, we must focus on strengthening recruitment, expanding access to education, and supporting attainable pathways into high-demand fields, not creating new barriers,” said CHA CEO Jennifer Jackson.

She said the bill would help mitigate the impact on current and future providers.

“It also serves as an important reminder that sustained, long-term solutions are essential to ensure Connecticut can continue to educate, recruit, and retain the compassionate, highly skilled healthcare workforce on which our communities depend,” she said.