California DREAM Loan Program.

Existing law establishes the California DREAM Loan Program, which authorizes a student attending a participating campus of the University of California or California State University to receive a loan, referred to as a DREAM loan, if the student satisfies certain requirements. Existing law prohibits a student from borrowing more than $20,000 in the aggregate under the program from any one participating institution. Existing law requires each participating institution to provide entrance and exit counseling to borrowers that is generally comparable to that required by federal student loan programs. This bill would prohibit a student from borrowing more than $40,000 in the aggregate under the program. The bill would prohibit a student who is enrolled in an undergraduate program from borrowing, as an undergraduate student, or a student who is enrolled in a graduate program from borrowing, as a graduate student, more than $20,000 in the aggregate under the program. The bill would require a participating institution, on or before January 1, 2024, to establish DREAM loan forgiveness options for borrowers with similar standards as those set forth in the Federal Perkins Loan Program. The bill would require borrowers to qualify for or be granted certain administrative relief, and would require borrowers to qualify for state of emergency administrative forbearance, as specified. The bill would specify that exit counseling provided by a participating institution includes information about DREAM loan repayment, forbearance, deferment, discharge, and forgiveness. The bill would require a participating institution to post information about the DREAM loan on its internet website, as specified.