Haddad Legislative Update 12/20

December 20, 2024


 
I want to wish you and your loved ones a very safe and happy holiday season.

As we close out the new year, I want to update you on two matters coming out of the state Capitol this week: medical debt relief and a limited student loan relief program for certain qualified individuals.

Medical Debt Relief
More than 22,000 residents of Connecticut can expect some or all their medical debt to be eliminated, thanks to a major state initiative in partnership with the national nonprofit organization Undue Medical Debt.
 
Undue Medical Debt collaborates with state and local governments to leverage public investments, negotiating with hospitals and other providers to eliminate large, bundled portfolios of qualifying medical debt. This initiative specifically targets patients whose income is at or below four times (400%) the federal poverty level, or who have medical debt that constitutes 5% or more of their income. Because these medical debts are acquired in bulk and pertain to individuals who are least able to pay, they can be purchased at a fraction of their face value.
 
In this initial round, the state allocated approximately $100,000 from its share of the American Rescue Plan Act (ARPA) funding. With this investment, Undue Medical Debt successfully negotiated with a secondary market partner (such as a collections agency) and a national provider to acquire approximately $30 million in qualifying medical debt for Connecticut residents.
 
Residents do not need to apply for this medical debt relief, nor can they request it. Those whose debts have been identified for relief will receive a branded letter from Undue Medical Debt detailing which debts have been eliminated. These letters will be sent out through the U.S. mail, starting December 23.
 
Limited Student Debt Relief
Starting January 1, a limited number Connecticut college graduates will be able to benefit from a bill we passed to alleviate student loan debt. The reimbursement program, led by House Democrats and the first of its kind in the nation, provides up to $5,000/year for up to four years (up to $20,000) in loan forgiveness. Six million dollars has been allocated in the current budget cycle and will be awarded on a first-come, first-served basis. 

The Office of Higher Education (OHE) may approve the participation of any person in the student loan reimbursement program who meets the following requirements: 
1.    Must have graduated from a Connecticut state public or private college or university with a bachelor’s or
associate degree or have an occupational/professional license or certificate or left such college in good standing and was granted a hardship waiver by the Office of Higher Education.
2.    Must be a CT resident for at least five years.
3.    Must have a Connecticut adjusted gross income of not more than $125,000 for single applicants and file a federal tax return as unmarried or have a Connecticut adjusted gross income of not more than $175,000 for married applicants and file a federal tax return as head of household, married filing jointly or a surviving spouse.
4.    Must have an outstanding student loan balance and have made payments in 2024 toward federal direct loans, federal direct PLUS loans, federal Perkins loans, CHESLA loans, other state’s sponsored student loans, or a private student loan.
5.    Must have volunteered for at least 50 hours at a Connecticut nonprofit organization that is registered with the Department of Consumer Protection, municipal government, served on the Board of Directors for a nonprofit organization, or has military service after January 1, 2024.

Please note that applications will NOT be accepted until the 50-hour service requirement is fulfilled. I expect enrollment in this small pilot program will be very competitive since the pool of potential applicants is very large.  If you can verify that you volunteered 50 hours to a non-profit in 2024 and you also meet the other criteria, I’d suggest you apply as soon as the new year begins. Additional information can be found here:

 https://ohe.ct.gov/Docs/SLRPInformation2025.pdf
 
Happy Holidays
From my family to yours, I want to take a moment to send my best wishes for the holiday season. May it bring you and your loved ones peace, happiness and time well spent together. Remember that no matter how we celebrate, we also share many blessings. So, in the spirit of the season, please spread the joy that makes this time of the year truly special.
 
Looking ahead to the new year, I am excited for all that we will accomplish together. It is my sincere honor to represent you and work on issues that matter to our community and Connecticut.
 
Happy Holidays!

 

 

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