California DREAM Loan Program: repayment, deferment, and forbearance.

The California DREAM Loan Program provides that a student attending a participating campus of the University of California or California State University may receive a loan, referred to as a DREAM loan, through the program if the student satisfies specified requirements, including a requirement that the student be exempt from paying nonresident tuition or meet equivalent requirements adopted by the Regents of the University of California. The program requires that repayment of the DREAM loan commence following a 6-month grace period that begins when a student graduates or ceases to maintain at least half-time enrollment in a degree or certificate program. The program requires a participating campus to determine eligibility for deferment or forbearance of a DREAM loan in accordance with the standards set forth in specified federal law. This bill would require a participating campus, on or before January 1, 2020, to adopt procedures allowing a borrower to select an income-based repayment plan for the repayment of a DREAM loan, as specified.