What is the Senate Bill 1210 (SB1210 or DREAM Loan Program)?
The California DREAM Loan provides eligible undocumented AB 540 undergraduates with the option to borrow loans to help cover the cost of attending a CAL State or a UC. This loan is borrowed money that must be repaid with interest. The loan is deferrable and does not accrue any interest while a student is enrolled at least half-time. Eligible students are able to receive up to $4,000/year or up to $20,000 for their whole school career.
- Who benefits from this law? Dreamers who meet the AB 540 or AB 2000criteria and are attending a California State University or a University of California.
How Does It Work?
Currently, undocumented students who graduate from a California high school or a Community College and meet the California Dream Act requirements are eligible for state and university aid, but ineligible for federal aid (including federal loans). The DREAM loan program, funded by the state and UC, aims to close that gap and provide eligible students with the opportunity to borrow student loans to help pay for their education.
- A loan is borrowed money (you may hear terms like “borrowing” or “taking out loans” ) that you have to pay back with interest.
- Each UC or CAL State will determine the amount a student can borrow based on available funding and number of eligible students.
- The maximum amount of a loan is capped at $4,000 each year, per student – but again, this is dependent on program funding.
- You can borrow every year you’re an eligible student or until you receive a maximum of $20,000 in DREAM loans.
- The loan interest rate for 2015-16 is 4.29%.