Committee advances bill to raise Dream Loan cap for undocumented graduate students

The Senate Education Committee moved AB 681, carried by Assemblymember El Hawari, which would raise the annual loan cap for the California Dream Loan program from $4,000 to $20,500 to better align with graduate school costs. The committee recorded the motion and reported the bill out by a 5‑1 vote.

Supporters, including University of California and California State University representatives and student testimony read into the record, said the current $4,000 annual cap is insufficient for many graduate programs and that undocumented students cannot access federal aid. Jessica Duong of the UC Office of the President described program benefits — reduced interest rates versus private loans, no interest while enrolled at half‑time, and a six‑month post‑graduation grace period — and said only 47 UC graduate students used the program in 2023–24. A student’s anonymous statement read by an advocate described the gap between awards and actual costs, saying without scholarships she could face tens of thousands in private debt.

The author said the bill would not increase general fund costs but would make the existing appropriation more useful for students pursuing graduate degrees. Supporters included the UC Office of the President, the CSU system, faculty and student groups.

There were no opposition witnesses in the hearing record. The committee adopted the motion to move the bill; the transcript records the bill as reported out of committee on a 5‑1 vote (Senator Choi recorded as voting No in the roll call reported during the hearing). The author closed by saying the change would remove a financial roadblock for undocumented students pursuing graduate degrees.