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California Dream Loans

The California Dream Loan is a state-subsidized student loan available to eligible undocumented AB 540 undergraduates, with the option to borrow to help cover the cost of attending a UC campus. 

Award amount and term: $4,000 per year

Aggregate Limits: $20,000

Need-based/subsidized?: Yes. No interest accrues during in-school, grace, and authorized deferment periods. You begin paying interest after you leave school, or when your grace/deferment period ends.

Awarded and disbursed by: UC San Diego

Interest rate: 6.39% for July 2025 to June 30, 2026

Loan fees: None

Repayment of principal and interest begins 6 months after your full-time or half-time enrollment ends.

To borrow the California Dream Loan

  1. File your California Dream Act Application and provide any requested documents before the deadlines.

  2. Enroll in at least 6 units (half-time)

  3. UC San Diego determines who is offered a California Dream Loan which is displayed and can be accepted in the “Selection” column within the Manage Awards drawer of the Financial Aid and Scholarships Student Portal.

  4. If accepted, additional requirements pertaining to this type of loan are handled directly between the borrower and Heartland ECSI.

  5. Once all of the requirements have been completed the turnaround time for Heartland ECSI to notify UC San Diego is approximately 3 to 5 business days.

  6. Loan funds will be credited to your UC San Diego student account (read more about how you get your money).

Loan Basics

  • Remember: Borrowing money is a serious responsibility. All loans must be repaid with interest.

  • Before you borrow, pursue outside agency scholarships as early as possible.

  • File your 2026-27 FAFSA or California Dream Act Application by the March 2 priority deadline to be considered for the best types of financial aid.

  • Submit any additional documents requested by the Financial Aid and Scholarships Office before the May 1 deadline for continuing students and June 15 for new entering students.

  • Review the undergraduate eligibility requirements to make sure you're eligible to receive loans (or any other types of financial aid).

  • If you are not eligible or have exhausted federal loan possibilities, you may consider private loan programs, but be aware that these loans may have higher interest rates, fewer repayment options and you may have to meet additional requirements, such as having an approved co-signer.

  • Read more about loans and about the Federal Direct Loan Program.

  • Please note: If you accept a Title IV loan, the loan(s) will be submitted to the National Student Loan Data System (NSLDS) and will be accessible to guaranty agencies, lenders, and schools designated as authorized users of the data system.