New & Noteworthy
Hartford Foundation Submits Testimony in Support of An Act Concerning A Study Of Student Loan Repayment Programs
On Monday, March 24, the Hartford Foundation for Public Giving submitted written testimony to the legislature’s Appropriations Committee in support of House Bill 7234, An Act Concerning A Study Of Student Loan Repayment Programs. The foundation appreciates the legislature’s efforts to ensure that all Connecticut students have access to affordable post-secondary education opportunities.
Examining the current landscape of student loan repayment program options is essential in expanding our understanding of what works and what more is needed to fully support students, particularly low- to moderate-income Black and Latine and other students needing hands-on guidance in financing and pursing their education and managing loan debt. We recommend ensuring that the study incorporates existing research and evaluations of loan repayment programs and related financing options for students.
As part of our strategic priorities to dismantle structural racism and advance equitable economic and social mobility for Black and Latine residents of Greater Hartford, the Hartford Foundation continues to work with government, nonprofit and other public-private partners to increase stable employment and career opportunities for youth and adults in our region facing multiple barriers.
Our work recognizes that all residents in our region need access to affordable education and training that lead to employment that provides a sustaining wage. The foundation’s efforts focus on increasing opportunities for post-secondary education and training and hiring and retaining residents who experience significant barriers to employment or other challenges, including first-generation students, returning citizens, opportunity youth disconnected from school and work, and students from low- and moderate communities of color. This includes nontraditional students pursuing education programs often with limited guidance and financial resources to meet four-college tuition or industry training options, and related expenses.
We need to ensure that all Connecticut students can receive financial assistance and other guidance needed. We recommend that the study examine effective program strategies nonprofits are using to help students navigate financing, gaining entry, and persisting in college or other career pathways can lead to good jobs.
The foundation is pleased to share what we are leaning in this testimony and invite the Committee to reach out to us to discuss the landscape of nonprofit programs with demonstrated outcomes supported by the foundation and other funding partners which could be expanded with state funding. As of January 2025, unemployment in Connecticut was 3.3 percent, yet labor participation is currently 64.9 percent. The low participation rate reflects the need to ensure we are engaging residents who have challenges in accessing and persisting in workforce training and job opportunities.
From our investments, the Hartford Foundation has witnessed the value of postsecondary education and training to the economic mobility of middle- and low-income students. Since 1945, the foundation has awarded scholarships and has seen firsthand the importance of students receiving adequate funds to attend, complete college and make successful transitions to the workforce. In 2024, the foundation awarded 440 scholarships totaling over $1.45 million. The scholarships are awarded through more than 100 funds created at the Hartford Foundation by individuals, families, and organizations. For many students, especially those from low- and moderate-income families and adults reentering the education system, receiving adequate financial aid directly affects their ability to attend a four-year college. We know that a high percentage of older and first-generation students in Connecticut rely on receiving substantial support.
The foundation supports House Bill 7234 which calls for a comprehensive study of student loan repayment programs available to students in the state. We appreciate the legislature’s intent to fully assess existing processes and programs to support students in navigating financial assistance options and controlling college debt. Collecting this data will provide policymakers with the information needed to inform policy development and program approaches.
Existing research has shown that there are negative effects on college enrollment when college prices increase and grant aid decreases. The impact on enrollment is particularly substantial among students from low-income households. Local research examined how expanded services can better support underrepresented college students. A literature review of scholarships and student supports was conducted by Trinity College on behalf of the foundation. It highlighted that monetary scholarships on their own are insufficient in helping students to complete financial aid applications, transition and acclimate to college, and persist until completion. The review also demonstrated the additional supports needed, including financial aid application assistance, enhanced advising and college coaching both before and during enrollment, immersion in learning communities, and sustained contact with scholarship recipients about requirements to increase college access, persistence, and completion.
The executive summary of the literature review can be found here and full report here. A Hartford Foundation learning brief on scholarships and college access can be found here. We recommend that the study proposed in this legislation incorporate local research and ongoing evaluations of loan repayment programs, including assessments of Connecticut’s Student Loan Repayment Programrelaunched in 2024 by CT Area Health Education Center and Department Public Health.
The study should also examine how students learn about available loan programs, their experience in navigating online applications, and responses to questions throughout the loan process. Student experience with loan programs affects their use of the services.
The Hartford Foundation’s grants recognize the importance of wraparound services to help students meet basic needs and navigate steps to complete college or other post-secondary education goals. The foundation has long-standing experience working with the Hartford Promise scholarship program. To date, Hartford Promise has awarded $9.5 million in scholarships to more than 1,000 students. Ninety percent of the students served by Hartford Promise are people of color, 75 percent come from low-income households, and 70 percent are first-generation college students.
Hartford Promise not only provides many Hartford Public Schools graduates with scholarships, but also comprehensive wraparound services over ten years, including before, during, and after college. These supports have contributed to the successful student outcomes that Hartford Promise has demonstrated: 87 percent of their students persist beyond the first year of college and 75 percent of participating students graduate from college. These outcomes far exceed the majority of promise programs throughout the country. Wraparound supports include financial resources for laptops, textbooks, emergencies, and mental health support, as well as one-on-one coaching, including connections to tutoring, academic advising, and strategic goal planning. To better prepare students for college and careers, Hartford Promise scholars also participate in workshops on vital soft skills including time management, professionalism, and resume writing. Career development services include mock interviews, salary negotiation, and networking.
Hartford Youth Scholars also provides comprehensive support to its students in navigating financial and other supports needed for college and beyond. The foundation has awarded funding to the organization to support its work with college bound students over 10 years. Getting into a school is a crucial first step, but long-term success requires sustained commitment from the students, their families, as well as continued support from Hartford Youth Scholar staff.
Providing access to an affordable post-secondary education is vital to the long-term health and well-being of Connecticut’s diverse student body. The foundation also provided a $45,000 community organizing grant to the Student Loan Fund to support its work to develop leaders to help improve the systems of higher education funding and financing that disproportionately impact people of color and first-generation students. With an average debt of $36,000, borrowers are struggling to build wealth, contribute fully to their families and their communities. Student debt also has been shown to be a racial equity issue. Black women often receive less financial aid and end up owing more than any other group.
The Hartford Foundation welcomes partnering with legislators, philanthropy, nonprofits, advocates, and businesses to tackle barriers to higher education and employment to ensure that all residents have an opportunity to attain economic stability, reach their full potential, and to thrive and contribute to Connecticut’s economy.