California Dream Loan Program

California Dream Loan Program
The California Dream Loan Program provides eligible AB540 students with the option to borrow loans to help cover the cost of attending a California State University. Students will be notified by the Financial Aid & Scholarship Department in mid to late October if they are eligible to receive the loan. Receipt of funds in one year does not guarantee you will receive funds in subsequent years.

Student eligibility requirements

  • Must have an AB540 Affidavit on file with Admissions and Records
  • Must file the CA Dream Act Application (CADAA) by March 2 priority filing date
  • Must be an undergraduate
  • Must be enrolled in at least 6 units
  • Must have a financial need as demonstrated by the CADAA
  • Must maintain Satisfactory Academic Progress (SAP)
  • Cannot be in default on federal, state or institutional loans

Program Requirements

  • Students must complete Entrance and Exit Counseling (information will be provided when loan is awarded)
  • Promissory Note must be completed annually due to changing interest rates
  • Interest Rate will change each year to correspond to the Federal Direct Subsidized Interest Rate
  • Students do not accrue interest while in school, grace, deferment.
  • Students receive a 6 month grace period after dropping below half time enrollment.
  • Students are eligible for deferment and forbearance under the same conditions as the Federal Direct Subsidized loan
  • Loan Repayment: There is only one standard 10-year repayment plan
    • Minimum payments are $50 (amount depends on the total amount borrowed)
  • Students will default after 6 months of being delinquent
  • There is a $4 late fee assessed for late payments
  • ECSI is the contracted servicer of this loan program

Note: This program is dependent on annual funding and there is no guarantee of its availability in subsequent years.