SENATE BILL 8, ADDRESSING HIGHER EDUCATION AFFORDABILITY AND KEEPING GRADUATES IN CONNECTICUT, TO RECEIVE PUBLIC HEARING TODAY

Today, one of Senate Democrats’ priority bills to address access and affordability of higher education, as well as to keep young Connecticut graduates living and working in Connecticut, will receive a public hearing in the Higher Education and Employment Advancement Committee.

“Senate Bill 8 seeks to address one of the biggest issues with higher education in our state: its financial costs,” said State Senator Derek Slap (D-West Hartford), Senate Chair of the Higher Education and Employment Advancement Committee. “Every step that this bill takes, from expanding the eligibility pool for the PACT program to increasing investment in the Roberta B. Willis Scholarship Program and establishing new interest rate reductions for in-demand industries, is designed to lessen the burden of student loans and financial cost. Additionally, such moves also support our state’s workforce and economy, especially in that reduced interest rates will help support the state’s pipelines supporting industries looking for more workers.”

“We need to relinquish the financial fear placed upon our youth when they are thinking about college,” said Sen. Moore. “Affordable Higher Education eliminates the racial inequities amongst students in our state. Every student deserves to achieve a higher education and should not be turned away because of their lack of finances. Extending the PACT program expands access to a number of individuals that will be able to move forward; getting an education creates equity, and increased opportunities in the workforce.”

Senate Bill 8, “An Act Concerning Higher Education Affordability and Graduate Retention,” seeks to:

Extend the state’s PACT debt-free community college program to returning students
Increase the amount of minimum award grants through the PACT program from $250 to $1,000 for full-time students and from $150 to $600 for part-time students
Reallocate American Rescue Plan Act funds to support the Roberta B. Willis Scholarship Program, helping students with the cost of education
Require the Connecticut Higher Education Supplemental Loan Authority to establish a Student Loan Subsidy Program to reduce the interest rates on loans provided to individuals in certain high-demand professions
Provide a tax deduction to state residents paying interest on student loans during the taxable year

Currently, the PACT program provides up to three years of debt-free community college to first-time Connecticut high school graduates seeking higher education. This bill would extend that offering to students who are not first-time students, expanding access to a number of workers and residents who may have started but not finished previous attempts at higher education. Additionally, the additional award grant funding through the program would provide significant financial support and flexibility for students, who even after expenses may face other costs such as needing school supplies and books for coursework.

While community college costs are lower than that of four-year colleges and universities, they still can serve as a financial challenge to those seeking to continue their education. According to the Connecticut State Colleges and Universities, a student taking 12 or more credits at a community college will face costs that could exceed $2,350.

Further, the bill would reallocate funds to support the Roberta B. Willis Scholarship Program. The program provides scholarships to students meeting certain academic standards, attending college in Connecticut and whose expected family contributions will be below the Office of Higher Education’s limit of $10,999; this increased investment will support a number of additional students with costs as they pursue higher education.

The bill would introduce a Student Loan Subsidy Program through CHESLA, where the Chief Workforce Officer would subsidize interest rates on authority loans to individuals in high-demand positions. These professions would be named no later than September 2023; it’s likely that this would be used to encourage students to pursue fields in high demand for employers, including manufacturing and health care, and would incentivize those students to remain in Connecticut and pursue in-state employment upon graduation. Finally, the bill would provide a tax deduction to state residents who paid interest on their student loans, helping cut down on loan interest appreciation that can hold residents back financially even as they make regular payments.

LEGISLATION PREVENTING COLLEGES AND UNIVERSITIES FROM WITHHOLDING STUDENT TRANSCRIPTS PASSES KEY COMMITTEE

This week, the Higher Education and Employment Advancement Committee voted in support of legislation that would prevent higher education institutions from withholding student transcripts from employers, prospective employers or branches of the military as a means to collect a student’s debt. State Senator Derek Slap (D-West Hartford), Senate Chair of the Higher Education Committee, led the Committee’s joint favorable approval of the bill.

In 2022, similar legislation was introduced and was passed on the Senate floor, but was never voted on by the House.

“This bill would end what is commonly referred to as ‘transcript holds’ that hold back job seekers,” said Sen. Slap. “Students and alumni who owe debt can’t pay that debt without employment. A ‘transcript hold’ is counterproductive. This bill would ensure prospective job seekers can more easily interview and find work. When they’re able to work, they’ll be more able to pay off that debt. This would end a penny-wise, pound-foolish practice.”

Senate Bill 922, “An Act Prohibiting An Institution Of Higher Education From Withholding Transcripts,” would prohibit institutions of higher education from withholding student transcripts from employers, prospective employers or military service branches as a means to collect student debt.

College alumni who are seeking new jobs often need to submit academic transcripts to employers, but some colleges and universities have policies restricting those with student debt from accessing transcripts; such policies can restrict alum career opportunities, can negatively impact finances in context of student loan debt and can have a disproportionate impact on those with lower incomes, experts have testified. This would ensure fewer students are held back financially and professionally, preventing them from being reported to collection agencies and otherwise being denied career opportunities just because of debt.

The Consumer Protection Agency prohibited this practice for student loans in October 2022, but it still exists when it comes to outstanding fees and charges imposed by schools.

Eight states, including California, Colorado, Illinois, Maine, Minnesota, New York, Ohio and Washington, have passed laws prohibiting or limiting the use of transcript holds.