Plain English Breakdown
The official text does not specify an effective date, only the chaptering date of October 13, 2025.
Changes to California DREAM Loan Limits
This law changes the maximum amount students can borrow each year and in total under the California DREAM Loan Program for undergraduate and graduate studies.
What This Bill Does
- Sets a yearly borrowing limit of $4,000 for students enrolled in an undergraduate program.
- Sets a yearly borrowing limit of $20,500 for students enrolled in a graduate program.
- Keeps the total lifetime loan limit at $20,000 for students who only attend as undergraduates.
- Raises the total lifetime loan limit to $118,500 for students enrolled in a graduate program.
- Allows a student who borrows for both undergraduate and graduate studies to reach a combined total of $138,500.
Who It Names or Affects
- Students attending participating campuses of the University of California or California State University.
- Undergraduate students enrolled in programs at these universities who qualify for DREAM loans.
- Graduate students enrolled in programs at these universities who qualify for DREAM loans.
Terms To Know
- DREAM loan
- A specific type of student loan available to eligible attendees at participating University of California or California State University campuses if they satisfy certain requirements.
- Aggregate limit
- The total maximum amount a student can borrow over their entire time in the program, not just for one year.
Limits and Unknowns
- This law only changes borrowing limits and does not explain other requirements to qualify for the loan.
- The text provided does not state when these new dollar amounts officially begin or if they apply retroactively.
- The bill summary does not list which specific campuses participate in the program.