The California Dream Loan is a subsidized loan program for undergraduate students with a valid California Dream Act Application and CA residency or AB 540/AB 2000/SB 68 eligibility.
The California Dream Loan is borrowed money you must repay with interest. The interest rate for 2023-2024 school year is 5.50% fixed.
A subsidized loan does NOT accrue interest while you are enrolled in college at least half-time and during periods of approved deferment. Deferments are an agreement between the lender and the student to postpone payments for an approved period of time. You will be responsible for the interest charged at all other times.
Repayment of your loan begins 6 months after you graduate or drop below half-time. California Dream Loans are set-up to be repaid in monthly installments over a 10-year period and have a minimum payment of $50 a month. You can pay off your loan earlier without penalty.