Financial Aid and Scholarships
Source: https://financialaid.ucdavis.edu/loans/undergraduate/dream Parent: https://financialaid.ucdavis.edu/undergraduate/types/ab540
California DREAM Loan
California DREAM Loan
Loans are a form of financial aid that must be repaid. Educational loans have varying fees, interest rates, repayment terms, and/or borrower protections. The loans must be repaid after you graduate, withdraw from college, or drop below half-time status (fewer than six units per quarter). Please note that the loan amount you request and all other aid received cannot exceed the Cost of Attendance.
The California DREAM Loan Program provides eligible AB540 students with the option to borrow a DREAM loan to assist with the cost of attending UC Davis. The California DREAM Loan is based on a student's financial need.
Loan details
- Minimum award: $200
- Maximum award: $4,000
- Total Aggregate Maximum: $20,000
- Loan servicer: Heartland ECSI
Eligibility requirements
To qualify for the California DREAM Loan, a student must:
- Have an approved AB540 residency determination from the Registrar's Office
- File the California Dream Act Application, or CADAA, for the current academic year
- Be enrolled in at least six (6) units
- Demonstrate financial need (no credit check required)
How to apply and accept
- Accept the DREAM loan through your MyAwards portal
- Receive an email from webmaster@ecsi.net with instructions and your Heartland ECSI PIN for completing necessary loan requirements online
- Complete the loan requirements:
- Supplemental loan information through MyAwards
- Truth in lending documents, entrance counseling, and e-sign the promissory note through Heartland ECSI.
2025-26 loan offers can be accepted or declined in MyAwards beginning July 14, 2025. Requirements can be completed after the loan has been accepted.
2026-27 DREAM Loan borrowers: The Truth in Lending and Right to Cancel requirement access will be available after mid-July.
Interest rates
Interest rates vary annually and are aligned with the Federal Direct Subsidized Loan Interest Rate.
Borrower is not responsible for paying the interest if:
- Enrolled at least half-time at an eligible school, OR
- Within six (6) months of having been enrolled at least half-time, OR
- During a period of deferment
Important dates
See undergraduate student loans for important loan dates.
Exit requirements
When you leave UC Davis, you must complete loan exit counseling. You should expect to receive an email notification with instructions on how to complete this requirement. Learn more about exit requirements at Repaying loans.
Repayment
Repayment begins 6 months after you graduate, leave school, or drop below half-time enrollment. Learn more at Repaying loans.
- Standard repayment: up to 10 years with a minimum of $50 monthly payment
- You can repay your loan without penalty at any time. The faster you pay your loan, the less interest you pay over time.
- Deferment: You may qualify to postpone your monthly payments, during which no interest accrues, if you are:
- Unemployed (maximum 3 years)
- In-school
- Experiencing economic hardship or
- Are on active duty in the U.S. Armed Forces
- Forbearance: If you are not eligible for deferment, you may be eligible to postpone or reduce your monthly payments (with interest accrual) under forbearance if you are:
- Experiencing financial hardship
- Experiencing a prolonged illness
- Death and disability cancellation: The loan is canceled due to the student's death or becoming permanently and totally disabled.
- Additional cancellation: To determine eligibility for an additional cancellation request, review pages 5 and 6 of your Promissory Note.
To apply for a deferment, forbearance, or cancellation, contact Heartland ECSI at (888) 549-3274.