(a) The Connecticut Higher Education Supplemental Loan Authority shall establish, subject to available funding pursuant to section 10a-247a, an Alliance District Educator and Counselor Loan Subsidy Program for the purpose of subsidizing interest rates on authority loans, as defined in section 10a-223, to teachers, paraeducators and school counselors who are employed in a district designated as an alliance district pursuant to section 10-262u and who meet the eligibility criteria as established by the authority and the Commissioner of Education.

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Terms Used In Connecticut General Statutes 10a-247

  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC

(b) The authority shall enter into a memorandum of agreement with the Commissioner of Education to establish the eligibility criteria and administrative guidelines for the Alliance District Educator and Counselor Loan Subsidy Program. Such eligibility criteria and guidelines shall include, but need not be limited to, (1) applicant eligibility, (2) interest rate subsidies and principal limits on authority loans subject to the Alliance District Educator and Counselor Loan Subsidy Program, (3) the process for verifying the employment of applicants, and (4) the requirement that an interest rate subsidy through the Alliance District Educator and Counselor Loan Subsidy Program shall terminate for any subsidy recipient who ceases to meet the employment requirements of such program during the term of such recipient’s loan from the authority.