Senate Passes Lara’s California DREAM Loan Program

May 28, 2014

SACRAMENTO —Today, the California DREAM Loan Program authored by Senator Ricardo Lara (D-Huntington Park/Long Beach) which would establish at the University of California and California State University a loan program for “DREAMERS” cleared the Senate by a vote of 26 to 11.

“Establishing the California DREAM Loan Program will take some of our state’s top students closer to the graduation finish line,” said Senator Ricardo Lara. “These are students we’ve invested in from an early age and who have done what we’ve asked them to do: work hard, study and pursue a higher education, yet many still lack adequate financial resources. Continuing to invest in our future and ensuring that all students have access to the funding resources they need to succeed should be a top priority.”
Undocumented students who are exempt from paying Nonresident Supplemental Tuition under AB 540 and who are eligible for state and institutional financial aid under AB 130 and AB 131 still lack access to student loans – either from the federal government or from private lenders.  As a result, these students have an estimated “gap” in their financial aid packages of roughly $5,000 to $6,000 at the University of California and $3,000 for the California State University that other students with similar financial circumstances do not have. There are an estimated 1,300 undocumented students attending the UC and 6,400 at the CSU.

SB 1210 would establish the California Dream Loan Program at the UC and CSU and allow undocumented students the opportunity to apply for student loans. The initial funding would be set at $9.2 million with $2.3 million coming from the institutions and $6.9 million from state funds.