Connecticut Higher Education Supplemental Loan Authority (CHESLA) Chairperson (CGS § 10a-224)

● The authority consists of eight members.

● The governor appoints five members, including the chairperson, for six-year terms; the state treasurer, Office of Policy and Management secretary, and higher education commissioner are ex-officio members.

● Both houses confirm the chairperson's appointment.

● CHESLA makes direct loans to college students and their parents to help finance the costs of undergraduate and graduate education. Eligible students must attend a Connecticut college or be Connecticut residents attending college outside the state.

QUESTIONS FOR REAPPOINTED CHAIRPERSON

1. Why was CHESLA established and what is its purpose?

2. The subprime mortgage crisis, and the resulting credit crunch, forced several lenders to drop out of federal and alternative student loan markets in 2008. How has CHESLA been affected by the global credit crisis?

3. What are CHESLA's yearly administrative costs and how have they changed over time?

4. CHESLA charges a 3% reserve fee on all of its loans. How does this compare to fees community banks and other private lenders charge on student loans?

5. What is CHESLA's default rate? Do you anticipate it to increase during the recession?

6. Has the authority considered expanding its offerings to include consolidation loans?

7. What percentage of loan recipients attend Connecticut colleges? What percentage attend public, as opposed to independent, colleges?

8. What differentiates CHESLA from other private lenders? How do its rates compare?

9. As students become more reliant on educational loans, what can CHESLA do to help decrease the burden of these often significant financial commitments?

10. What are the greatest challenges facing CHESLA and what is the authority doing to address them?

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