***PRESS RELEASE***Student Loan Overhaul Leaves Connecticut Borrowers with Fewer Options and Higher Bills
Conner, Desmond
For IMMEDIATE Release Contact: Desmond Conner
Wednesday, July 1, 2026 (860) 240-0071
Student Loan Overhaul Leaves Connecticut Borrowers with Fewer Options and Higher Bills
Reps. Paris, Kavros DeGraw alert borrowers to federal changes, state assistance
HARTFORD, CT - Sweeping federal changes to the student loan system take effect today, July 1, and State Representative Corey Paris (D-Stamford), House Chair of the Committee on Children, a member of the Higher Education and Employment Advancement Committee, and a driver of the state’s Student Loan Reimbursement Program, is alerting the more than half a million Connecticut residents who carry student debt that the new rules will narrow their choices, raise monthly payments for many, and close off affordable pathways to higher education.
“Student debt is already one of the heaviest weights on working families in our state, and instead of lifting it, Washington just made it heavier,” said
Rep. Paris. “I have always believed we should be forgiving and wiping this debt away, not building new walls around it. These changes do the opposite. They take away the affordable repayment plans people were counting on, they punish parents who borrowed
to give their kids a shot, and they tell young people from working families that higher education is only for those who can already pay for it.”
An estimated 518,500 Connecticut residents currently hold a combined $19.1 billion in student loan debt, with the average borrower owing roughly $36,800, according to data analyzed by the Education Data Initiative. Connecticut ranks fifth in the nation for
the average amount of debt students carry at graduation, a reflection of the state’s high cost of higher education.
The Grad PLUS program, which lets students borrow up to the full cost of attendance, is being eliminated. Graduate borrowing for unsubsidized loans is now capped at $20,500 per year and $100,000 over a lifetime. Students in certain professional fields have
a higher cap. Still, the practical effect for many will be a turn toward riskier private loans that carry fewer protections and are not available to everyone.
Today’s changes touch nearly every one of these borrowers.
“Make no mistake about what this is: a wealth test on opportunity,” said Rep. Eleni Kavros DeGraw (D-Avon/Canton), House Chair of the Planning and Development Committee and staunch supporter of the Student Loan Reimbursement Program (SLRP). “Washington is telling every working family in Connecticut that college is now for people who can already afford it, and that everyone else can get in line for a mountain of debt with no way out. I did not get into public service to watch my neighbors get crushed by a system rigged against them. I will keep fighting to cancel this debt and to protect every borrower in our state, because no young person’s future should be treated as collateral.”
After years of legal limbo, borrowers enrolled in the SAVE Plan are receiving notices to choose a new repayment plan within 90 days. Anyone who does not choose will be automatically moved into the standard repayment plan, which could mean a sharply higher monthly
bill. Two long-standing affordable options, Income-Contingent Repayment (ICR) and Pay As You Earn (PAYE), will be phased out entirely by July 1, 2028.
In the future, new borrowers are limited to a new Tiered Standard plan or a new income-driven plan called the Repayment Assistance Plan (RAP). Unlike prior income-driven plans, RAP has no cap on monthly payments, and its income brackets are not adjusted for
inflation, meaning payments can climb over time. Even the lowest-income borrowers must pay at least $10 per month.
No borrower should navigate these changes alone. Connecticut is one of a limited number of states with a dedicated Student Loan Ombudsperson, Michelle Jarvis-Lettman, housed at the state Department of Banking and backed by independent statutory authority under
state law.
The Ombudsperson’s office can receive and work to resolve complaints against student loan servicers, whether the loan is federal or private. It can help borrowers understand and choose among repayment options and answer questions about switching plans or consolidating.
The Office can also step in to address problems such as misapplied payments, incorrect interest calculations, servicer changes, and errors in payment history or credit reporting, and it can connect borrowers to educational resources and help them navigate
the transition off SAVE and into a new plan.
Borrowers can call the Office at 860-240-8170 or 800-831-7225, and press option 2 or:
• Email: banking.c...@ct.gov
• File a complaint online:
portal.ct.gov/DOB/Consumer/Consumer-Complaints/Student-Loan-Servicer
Borrowers can also file complaints with the federal Consumer Financial Protection Bureau at
consumerfinance.gov/complaint
or by phone at 855-411-2372.
Connecticut also puts real dollars back in borrowers’ pockets through the Student Loan Reimbursement Program (SLRP), administered by the state Office of Higher Education. Residents can apply for or learn more about the Student Loan Reimbursement Program via:
• Website: portal.ct.gov/ohe
(apply through the CT Scholars portal)
• Email: OHE....@ct.gov
“The Student Loan Reimbursement Program has already returned millions to Connecticut borrowers, and I want every eligible resident to know it exists and to apply,” Rep. Paris said.
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Rep. Corey Paris represents the 145th District in Stamford in the Connecticut House of Representatives. Rep. Eleni Kavros DeGraw represents the 17th District, serving Avon and Canton.
Desmond Conner
Press Department
Connecticut House Democrats
Office: 860-240-0071
Cell: 203-376-0847
Rep. Belton (Middletown), Chair, Black Maternal Health & Infant Care
Rep. Biggins (East Hartford, Manchester)
Rep. Bumgardner (Groton, Stonington), Vice Chair, Environment
Rep. Exum (West Hartford, Avon), Deputy Maj. Leader, Vice Chair, Appropriations, Tri-Chair, Transforming Children’s
Behavioral Health
Rep. Jacobson (Stamford)
Rep. Kavros DeGraw (Avon, Canton), Chair, Planning and Development; Co-chair, Bipartisan Women’s Caucus
Rep. McGee (West Haven), Dep. Maj. Leader, Vice Chair, Black Maternal Health & Infant Care
Rep. Paris (Stamford), Chair, Committee on Children; Vice Chair, Appropriations
Rep. M. Sanchez (New Britain), Chair, Labor and Public Employees Committee
Rep. Wilson (Norwich), Vice Chair, Labor and Public Employees
Rep. Wood (Rocky Hill, Wethersfield), Chair, Insurance and Real Estate
