California DREAM Loan Program: limits.

Assembly Member Elhawary's proposal to modify the California DREAM Loan Program would substantially increase borrowing limits for graduate students while maintaining existing undergraduate lending parameters. The measure adjusts annual and aggregate loan caps within the program, which serves students at participating University of California and California State University campuses.

Under the proposed changes, graduate students could borrow up to $20,500 annually, an increase from the current $20,000 limit. The bill also raises the aggregate borrowing ceiling for graduate students from $20,000 to $118,500. For undergraduate students, the existing limits remain unchanged at $4,000 per academic year and $20,000 in total. Students who pursue both undergraduate and graduate degrees through the program could access a combined maximum of $138,500 in loans.

The measure preserves other core elements of the DREAM Loan Program, including interest rate alignment with federal undergraduate loans, standard 10-year repayment terms, and provisions for income-based repayment plans. Existing protections regarding loan deferment, discharge, and forbearance options also remain intact, as do administrative relief measures during declared emergencies or natural disasters.