The California (CA) Dream Loan is borrowed money you must repay with interest. The CA Dream Loan is a subsidized loan program for undergraduate students with a valid CA Dream Act application and a valid AB540 affidavit or “U” Visa on file with Cal State San Marcos. You must attend at least half-time (6 or more units per semester) in order to receive the CA Dream Loan.
Interest Rate, Deferment, and Grace Period
The interest rate for 2017-18 is 4.45%. The interest rate for the CA Dream Loan corresponds with the interest rate on Federal Direct Subsidized loans and is subject to change for new loans annually. The CA Dream Loan does not accrue interest while you are enrolled at least half-time, during periods of approved deferment, and during the 6-month grace period before you enter repayment. You will be responsible for the interest charged at all other times.
Repayment of Loans
California Dream Loans are setup 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. You begin repaying your loan at the end of a 6-month grace period. The grace period begins once you graduate, leave school, or enroll less than half-time.
The CA Dream Loan is subject to annual, semester, and aggregate limits set by the state legislature, the CSU Chancellor’s Office, and SSU. The annual loan limit is $4,000 and the semester limit is generally $1,000. The aggregate limit of $20,000 is the maximum that you can borrow from the CA Dream Loan program at Cal State San Marcos.
Eligibility for the CA Dream Loan
Because funds are limited, you will be notified by the Financial Aid Office if you meet the eligibility criteria for the CA Dream Loan. The application process will be explained in emails sent to your email account, and in the To Do List items in MyCSUSM.
You may decline the loan offer or accept less than what is offered to you, but you may not be able to increase your loan at a later time. Students who accept the CA Dream Loan must complete a promissory note and entrance counseling. If you fail to complete all the required steps to receive your loan disbursement by the assigned deadline, we may cancel the loan offer. Funds are limited and you may not be awarded the funds again at a later date.
You must attend at least half-time (6 or more units per semester) in order to receive the CA Dream Loan.
Receipt of funds in one year does not guarantee availability or receipt of funds in subsequent years.