Connecticut's college financing authority says it's offering a lower fixed rate on supplemental student loans following the recent passage of a bill aimed at addressing student debt.
The Connecticut Higher Education Supplemental Loan Authority announced Wednesday it has put forward a fixed interest rate of 4.95 percent for new loans, the lowest in the authority's history. That's a drop from 6.75 percent.
CHESLA also agreed to increase the maximum allowed debt-to-income ratio, from 40 percent to 43 percent.
Kent state Representative Roberta Willis is co-chair of the legislature's Higher Education Committee. She says this could attract more out of state students, who would also be eligible. She hopes when they come to college in Connecticut, they'll plan to stay in state after graduation. Willis says this puts Connecticut at one of the lowest rates in the United States, and says she couldn't be more pleased about that.
Created in 1982, CHESLA has been a supplemental loan source for students who need to borrow more than the maximum amounts provided by other loan programs.
The recent legislation, which still awaits the governor's signature, clarified that CHESLA could use funds from the Connecticut State Loan Foundation to help finance its bonds.