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.
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 Hartford Courant reported that CHESLA will be open to students that live in Connecticut and out-of-state students that attend colleges in the state.
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.
This report contains information from The Associated Press. Rob Dozier is an intern at WNPR.
