The Ombuds Observer
May 2026 | Edition 011
| | Welcome to the May 2026 issue of The Ombuds Observer! Each issue brings helpful tips and timely updates on education loans, as well as a few insights to make the whole process a little less overwhelming. We’re glad you’re here! | |
CHESLA Launches New Grad Loan for Graduate and Professional Students
May 14, 2026 – Connecticut residents pursuing a graduate degree of study now have a new state-based graduate loan program option offered through the Connecticut Higher Education Supplemental Loan Authority (CHESLA). Earlier this month, CHESLA announced the launch of MyCHESLA Grad Loan, a loan option offering affordable, fixed-rate financing with the goal of filling the financing gap left in the wake of the elimination of the federal Grad PLUS loan program due to the One Big Beautiful Bill Act (OBBBA/OB3).
CHESLA announced in their press release they developed the MyCHESLA Grad Loan utilizing direct input from state colleges and universities while also employing, “an innovative approach that considers a borrower’s future earning potential based on their academic program.”
Deputy Director of CHESLA, Josh Hurlock, states:
| | |  | “Connecticut students deserve postsecondary education financing that is affordable, fair, and designed for long-term success…The MyCHESLA Grad Loan represents a forward-looking approach to graduate financing by incorporating future earning potential into underwriting while maintaining responsible, proven standards. This approach expands access and better reflects the real trajectory of today’s graduate and professional degree students[.]” | | The MyCHESLA Grad Loan corresponds to a legislative proposal from Connecticut Governor Ned Lamont establishing a state-run supplemental loan option for graduate and professional students. Students interested in learning more about eligibility, application timelines, and repayment details are encouraged to explore the program with CHESLA. We have included some of the program highlights below. | |
Program Highlights:
- Fixed rate as low as 5.50%
- 5 year, 10 year, and 15 year repayment term options
- Loan amounts $2,000 (min) through student’s net cost of education (max)
- Students may qualify via future expected earnings, as well as current income or cosigner income
- No prepayment fee
- No application deadline
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We Asked, CHESLA Answered
In preparation for the launch of the MyCHESLA Grad Loan, we reached out to CHESLA and invited them to answer a few questions to gather insight on the new loan and to learn more about CHESLA and what they offer. Thank you, CHESLA, for the insight and for helping to support our Connecticut borrowers!
Here’s what they had to say.
| | | | | | For those who don’t know, can you explain what CHESLA stands for and what you do? | | | The Connecticut Higher Education Supplemental Loan Authority (CHESLA) is a quasi-public state agency dedicated to expanding access to affordable post-secondary education financing. | | | |
In response to the elimination of the Grad PLUS Loan program, the State of Connecticut and CHESLA have partnered to provide a new financing option for graduate and professional students facing funding gaps. CHESLA will launch our new graduate loan program, the MyCHESLA Grad Loan, on May 14th ahead of the July 1st Grad PLUS loan elimination.
The new graduate program will be released in a staggered approach, with the initial rollout beginning May 14th utilizing CHESLA’s bond proceeds and tailored to specific degrees. Health professions are included in this initial phase.
When CHESLA officially receives supplemental funding (for the new Supplemental Graduate Loan Program) from the state’s Bond Commission (likely in June), the program will expand to include all graduate and professional degree programs. The state funding will support graduate students in high-demand fields such as social work and education.
Together, the CHESLA bond proceeds and state funding are intended to help fill a portion of the void left by the elimination of the Grad PLUS program. “We believe this program establishes Connecticut as a national leader in addressing graduate student financing gaps while expanding access to responsible borrowing options for students pursuing advanced degrees and investing in their futures. We are grateful for the State’s support,” CHESLA’s Deputy Director Josh Hurlock stated.
The MyCHESLA Grad Loan features fixed interest rates between 5.50% and 7.99%, based on the chosen repayment term and repayment option. All approved borrowers have equal access to the same fixed rates and rates are not tiered by credit score. The program serves as a cost-effective, borrower-centered alternative to higher-cost private loans, with all available fixed rates also remaining below the current federal Grad PLUS loan rate of 8.94%.
| | | | | Does a student need to attend a college or university in Connecticut to be eligible for a CHESLA loan? | | | Students must have a Connecticut nexus, defined as either residing in Connecticut or living in a neighboring state while attending a Connecticut institution. | | | | | Does CHESLA have any other programs available to Connecticut residents? | | | CHESLA offers a range of programs and resources for Connecticut residents. These include in-school and refinance loan programs, scholarships, financial literacy resources, and community engagement initiatives. These efforts help students and families across Connecticut navigate the path to educational and career success with confidence. | | Check out CHESLA’s financial literacy portal, CT Dollars & Sense, a one-stop shop for financial literacy, wellness, and empowerment. | | | Our Resource Hub brings together useful websites and guides we recommend bookmarking to help you stay informed and manage your student loans with confidence. | | | | |
Federal Student Aid (FSA) is the definitive resource on all federal student loans, including repayment and forgiveness options, servicer information, and more.
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Bookmark our webpages to stay informed on recent and upcoming changes to student loan administration and to access helpful student loan repayment resource guides.
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Finaid has been a trusted guide to college financial aid for over 30 years, helping students and families navigate the Free Application for Federal Student Aid (FAFSA), scholarships, grants, loans, and more.
| | We're going to keep these tips pinned as helpful reminders as we head toward the upcoming student loan changes that will be effective July 1, 2026. | | | |
Check Your Repayment Status
Log on to Federal Student Aid to understand whether you are in default, delinquent, or in a repayment plan — and check if wage garnishment or tax refund offset notices apply to you.
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Plan for Potential Tax Liability
If you’re nearing forgiveness under an IDR plan, consult a tax professional about the impact of taxable forgiveness in 2026.
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Stay Informed on Processing Delays
Because of legal challenges and plan revisions, applications and forgiveness processing may be delayed — stay in close contact with your servicer.
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Join Us! We're Talking Shop with Student Debt Crisis Center
Join the State of Connecticut Office of the Student Loan Ombudsperson and the Student Debt Crisis Center (SDCC) for a workshop on urgent changes impacting the student loan system, including the elimination of the SAVE plan, the introduction of the new Repayment Assistance Plan (RAP), and existing repayment plan options.
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WEBINAR
SAVE, RAP, & Student Loan Repayment Options: Workshop
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Virtual via Zoom
A meeting invite will be sent upon registration
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Returning in June: Limited Evening Bookings
Starting June 1, our office will be offering limited evening appointments until 7:00 pm on Monday and Tuesday evenings.
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