Banking Committee
JOINT FAVORABLE REPORT
Bill No.: HB-5610
AN ACT CONCERNING A STUDY BY THE CONNECTICUT HIGHER
Title: EDUCATION SUPPLEMENTAL LOAN AUTHORITY.
Vote Date: 3/9/2021
Vote Action: Joint Favorable
PH Date: 2/18/2021
File No.: 64
Disclaimer: The following JOINT FAVORABLE Report is prepared for the benefit of the
members of the General Assembly, solely for purposes of information, summarization and
explanation and does not represent the intent of the General Assembly or either chamber
thereof for any purpose.
SPONSORS OF BILL:
Banking Committee
Rep. Anne M. Hughes, 135th Dist.
Rep. Susan M. Johnson, 49th Dist.
Rep. Robyn A. Porter, 94th Dist.
Rep. Michael A. Winkler, 56th Dist.
Rep. Gary A. Turco, 27th Dist.
REASONS FOR BILL:
The bill will require the Connecticut Higher Education Supplemental Loan Authority to
conduct a study the feasibility and implications of expanding its loan programs to student loan
borrowers and other specific groups, the standards used by other student loan lenders, and
to compare itself to other student loan lenders in regard to interest rates and the pricing of
student loan products.
The bill was originally proposed to combat people without financial security from falling too far
into debt by increasing access to low-interest loans. HB 5610 looks into the logistics of the
Connecticut Higher Education Supplemental Loan Authority providing additional access to
low-interest loans.
RESPONSE FROM ADMINISTRATION/AGENCY:
Janet W. Weldon, Executive Director, CHELSA: The Connecticut Higher Education
Supplemental Loan Authority (CHESLA) fully supports expanding access to financing options
for individuals who wish to pursue opportunities in higher education. In addition to this
legislation, CHESLA has proposed a Minority Teacher Recruitment Program as part of their
2021 legislative agenda. This would provide interest rate subsidies on CHELSA student loans
to educators of color that commit teaching in Connecticut public schools.
NATURE AND SOURCES OF SUPPORT:
Susan M. Johnson, State Representative, Connecticut General Assembly: Students
have been hurt economically because of increasing costs of higher education and a financial
institution that charges students at higher rates. Student debt keeps graduates from
participating in our economy as it is the only thing that they can focus on financially. HB 5610
will help graduates obtain employment and put more of their money in our economy than in
paying back debt.
Bruce Adams, President & CEO, Credit Union League of Connecticut: Support
programs that increase student access to credit to further their independence because
education leads to financial independence. He wants private lenders to still be supported as a
valuable alternative to government loans. Connecticut credit unions also support the use of a
revolving loan fund that would use public funds to leverage the investment of private dollars
in students futures.
Eddy Agyeman, Resident: Supports the bill because it allows young people to not take
out as much debt in high interest. Student debt is the second higher consumer debt category.
Job competitiveness and Covid have exacerbated the need for low interest loans for people
wanting to pursue secondary education. HB 5610 will also provide relief toward other
expenses such as rent.
NATURE AND SOURCES OF OPPOSITION:
None Expressed
Reported by: Kyle Del Balso / Dawn Marzik Date: 3/23/21
Page 2 of 2 HB-5610