Bill > AB681

This bill modifies the California DREAM Loan Program, which provides financial assistance to students at University of California and California State University campuses. The bill adjusts borrowing limits for students in undergraduate and graduate programs. For undergraduate students, the annual borrowing limit remains at $4,000, with an aggregate limit of $20,000. For graduate students, the annual borrowing limit is increased from $20,000 to $20,500, and the aggregate limit is raised from $20,000 to $118,500. Consequently, the total aggregate borrowing limit for a student who receives DREAM loans for both undergraduate and graduate enrollment is increased to $138,500. The bill maintains existing provisions related to loan interest rates, which will match the current undergraduate loan rates of the William D. Ford Federal Direct Loan Program, and retains other existing program features such as a six-month grace period after graduation, potential income-based repayment options, and administrative relief provisions during national emergencies or natural disasters. The changes aim to provide more financial flexibility for students pursuing higher education through the DREAM Loan Program.

Budget and Finance, Education

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB681