CA Educ Code Section 70034


(a)

The amount of the DREAM loan offered to an individual student by a participating institution shall be determined by the institution, subject to the following provisions:

(1)

The loan may not exceed the financial need of the student.

(2)

No student may borrow more than four thousand dollars ($4,000) under this program within a single academic year.

(3)

No student may borrow more than twenty thousand dollars ($20,000) in the aggregate under the program from any one participating institution.

(b)

The interest rate for loans issued under the program shall be the same as the then-current interest rate for undergraduate loans under the William D. Ford Federal Direct Loan Program.

(c)

The standard repayment term for a DREAM loan shall be 10 years. Repayment shall commence following a six-month grace period that begins when a student graduates or ceases to maintain at least half-time enrollment in a degree or certificate program.

(d)

Interest shall not accrue on a DREAM loan during periods of at least half-time enrollment in a degree or certificate program or during the six-month grace period specified in subdivision (c).

(e)

Eligibility for deferment or forbearance of a DREAM loan shall be determined by the participating institution in accordance with the standards set forth in the William D. Ford Federal Direct Loan Program.

(f)

Participating institutions shall use a common promissory note, approved by the Treasurer, to issue DREAM loans.
Last Updated

Aug. 19, 2023

§ 70034’s source at ca​.gov