SB 1210 Summary

• Establishes the California DREAM Loan Program beginning in the 2015-16 academic year for students at participating University of California and California State University campuses who are exempt from nonresident tuition under Section 68130.5.

• Sets loan limits of $4,000 per academic year and $20,000 aggregate per institution, with interest rates matching federal Direct Loan Program rates and a 10-year standard repayment term with a 6-month grace period after graduation.

• Requires the Legislature to appropriate annual funding to participating campuses based on the number of eligible students, with campuses depositing funds into DREAM revolving funds and contributing institutional funds so that at least 50% of the revolving fund comes from campus contributions and loan repayments.

• Mandates participating campuses to determine student eligibility, award loans, provide loan counseling, service loans, and collect repayments; also requires annual reporting to the Legislature on loan amounts and number of recipients.

• Provides participating institutions with an administrative cost allowance equal to 5% of total DREAM loan funds awarded and grants immunity from money damages if a court finds the eligibility provisions unlawful.