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AB-681 • 2026

California DREAM Loan Program: limits.

California DREAM Loan Program: limits.

Education
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Elhawary
Last action
2025-10-13
Official status
Chaptered by Secretary of State - Chapter 702, Statutes of 2025.
Effective date
Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Limits on California DREAM Loan Program

This law changes borrowing limits for students in the California DREAM Loan Program.

What This Bill Does

  • Changes the limit to $4,000 per year for undergraduate students.
  • Increases the yearly limit to $20,500 for graduate students.
  • Raises the total amount a graduate student can borrow from $40,000 to $118,500.
  • Keeps the total borrowing limit at $20,000 for undergraduate students.
  • Increases the overall borrowing limit for students who go through both programs to $138,500.

Who It Names or Affects

  • Students attending University of California or California State University campuses.
  • Undergraduate and graduate students in the DREAM Loan Program.

Terms To Know

DREAM loan
A type of financial aid for eligible students at UC or CSU schools.
Aggregate limit
The total amount a student can borrow over their entire time in the program.

Limits and Unknowns

  • Does not specify how these changes will be funded.
  • Does not provide details on enforcement or penalties for exceeding limits.

Bill History

  1. 2025-10-13 California Legislative Information

    Chaptered by Secretary of State - Chapter 702, Statutes of 2025.

  2. 2025-10-13 California Legislative Information

    Approved by the Governor.

  3. 2025-09-11 California Legislative Information

    Enrolled and presented to the Governor at 4 p.m.

  4. 2025-09-04 California Legislative Information

    In Assembly. Ordered to Engrossing and Enrolling.

  5. 2025-09-04 California Legislative Information

    Read third time. Passed. Ordered to the Assembly. (Ayes 30. Noes 9. Page 2516.).

  6. 2025-08-29 California Legislative Information

    Read second time. Ordered to third reading.

  7. 2025-08-29 California Legislative Information

    From committee: Do pass. (Ayes 5. Noes 2.) (August 29).

  8. 2025-06-23 California Legislative Information

    In committee: Referred to suspense file.

  9. 2025-06-11 California Legislative Information

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 1.) (June 11). Re-referred to Com. on APPR.

  10. 2025-05-14 California Legislative Information

    Referred to Com. on ED.

  11. 2025-05-06 California Legislative Information

    In Senate. Read first time. To Com. on RLS. for assignment.

  12. 2025-05-05 California Legislative Information

    Read third time. Passed. Ordered to the Senate. (Ayes 61. Noes 10. Page 1419.)

  13. 2025-04-10 California Legislative Information

    Read second time. Ordered to third reading.

  14. 2025-04-09 California Legislative Information

    From committee: Do pass. (Ayes 10. Noes 4.) (April 9).

  15. 2025-03-19 California Legislative Information

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 2.) (March 18). Re-referred to Com. on APPR.

  16. 2025-03-03 California Legislative Information

    Referred to Com. on HIGHER ED.

  17. 2025-02-15 California Legislative Information

    From printer. May be heard in committee March 17.

  18. 2025-02-14 California Legislative Information

    Read first time. To print.

Official Summary Text

AB 681, Elhawary.
California DREAM Loan Program: limits.
Existing law establishes the California DREAM Loan Program, which authorizes a student attending a participating campus of the University of California or California State University to receive a loan, referred to as a DREAM loan, if the student satisfies certain requirements. Existing law prohibits a student from borrowing more than $4,000 within a single academic year and more than $40,000 in the aggregate under the program. Existing law prohibits a student enrolled in an undergraduate program from borrowing more than $20,000 as an undergraduate student and prohibits a student enrolled in a graduate program from borrowing more than $20,000 as a graduate student.
This bill would instead prohibit a student enrolled in an undergraduate program from borrowing more than $4,000 within a single academic year, and a student enrolled in a graduate
program from borrowing more than $20,500 within a single academic year. The bill would increase the aggregate limit under the program for a student enrolled in a graduate program to $118,500 as a graduate student, while maintaining the $20,000 aggregate limit under the program for a student enrolled in an undergraduate program, thereby increasing the overall aggregate limit under the program for a student who receives a DREAM loan for both undergraduate and graduate enrollment to $138,500.

Current Bill Text

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