OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-6074
AN ACT CONCERNING THE STUDENT LOAN REIMBURSEMENT
PROGRAM.
Primary Analyst: DD 3/30/25
Contributing Analyst(s):
Reviewer: JS
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 26 $ FY 27 $
Higher Ed., Off. GF - Cost Potential
Significant
Potential
Significant
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill results in a potential, significant cost to the Office of Higher
Education (OHE) annually beginning in FY 26. It expands the CT Loan
Forgiveness program to include any eligible state resident who was
enrolled at Stone Academy during the 16 months preceding the
academy's closure.
The bill's cost is dependent on the number of eligible former Stone
Academy students who meet all program requirements, and their
magnitude of annual student loan payments. The number of former
Stone Academy students eligible under the bill is unknown but likely
exceeds 1,000. Approximately 800 students were actively enrolled at
Stone Academy at the time that it closed.
The amount of annual student loan payments made by these former
students is unknown. The maximum possible amount of payments that
the program will reimburse per student is $20,000 ($5,000 for four years).
If each former student who was actively enrolled at the time of the
closure received the maximum possible award, the total cost would be 2025HB-06074-R000391-FN.DOCX Page 2 of 2
$16 million total over four years.
1
The timing of this cost would vary
based on when former students applied for and received the
reimbursement award.
The CT Loan Forgiveness program is administered on a first-come,
first-serve basis. This means that the above identified cost would only
be incurred if sufficient funding was available.
The bill also expands the types of volunteer activities that fulfill the
program's requirements and requires OHE to create a hardship waiver
for recipients to bypass the volunteer requirement. To the extent that
these provisions increase the number of people eligible for the program,
there is an increase in the cost to provide grants.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to the number of participants in the CT
Loan Forgiveness program and the grant awards they receive.
1
This does not include students who may have attended Stone Academy and left
before it closed without earning a degree.