Substitute Senate Bill No. 1261 seeks to enhance the Alliance District Educator and Counselor Loan Subsidy Program by broadening its eligibility criteria and establishing a new High Priority Occupation Loan Subsidy Program. The bill repeals the existing designation of "Educator and Counselor" and replaces it with more inclusive terms that cover teachers, paraeducators, and school counselors in alliance districts. Additionally, it allows individuals in high-priority occupations to qualify for loan subsidies, addressing workforce shortages in critical areas. The bill also mandates the Connecticut Higher Education Supplemental Loan Authority (CHESLA) to maintain a separate account for these programs and sets a funding cap of $7 million, which will be sourced from state appropriations and other means.

Furthermore, the bill requires collaboration between the Department of Education and CHESLA to establish eligibility criteria and administrative guidelines for both the Alliance District Loan Subsidy Program and the new High Priority Occupation Loan Subsidy Program. It includes provisions for the designation of high-priority occupations and mandates the development of program requirements in consultation with the Office of Workforce Strategy. The effective date for these changes is set for July 1, 2025, and while the bill does not increase funding for CHESLA, it is expected that the authority will have adequate resources to manage any increase in loan volume resulting from these changes.

Statutes affected:
Raised Bill:
HED Joint Favorable Substitute:
File No. 172: