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Economic & Community Development News

Posted on: February 3, 2023

Connecticut's Employer Student Loan Repayment Plan

Trumbull Economic Development

As a follow up to our recent Partners' email highlighting the MyCTSavings program, CHESLA's Employer Student Loan Repayment program can be an additional tool for employers seeking to recruit and retain employees. 

What is the Employer Student Loan Repayment Program?
The Connecticut Higher Education Supplemental Loan Authority (CHESLA) is currently offering an Employer Student Loan Repayment Program to work with employers to offer this benefit of student loan repayment to their employees.  

 Defining the Need
 Connecticut’s average student loan debt is approximately $36,000 - one of the highest in the U.S. With the cost of higher education doubling over the last 20 years, students require even more aid to further their education. And as the amount owed increases, this debt is following young adults into middle age. Not surprisingly, employers whose benefits include a loan repayment program are highly sought after. 

How can this program help your businesses? 

  • Federal and State benefits valued by recruits and employees: 
    • Federal - Employers can make tax-free payments up to $5,250/year per employee, involving both federal and private student loans.
    • If an employer pays down CHESLA loans on behalf of employees, the company may be eligible for a State of Connecticut tax credit - CT State Tax Credit Fact Sheet
  • Helps employer determine the number of employees eligible and interested.
  • Works directly with employer and HR team to customize benefit package based on employer needs.
  • CHESLA offers a variety of financial wellness products, including refinancing for more cost-effective loan rates and lower monthly payments.

Next Steps 

 Save the Date

February 22 Virtual Partners' Meeting

 Join us for a review of AdvanceCT's strategies for attracting and retaining businesses in 2023 and more on the ways we are promoting Connecticut, in and out-of-state, with research data and marketing efforts. 
Wednesday, February 22 @ 9-10am  

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