California DREAM Loan Program

The California DREAM Loan is a state-funded, low-interest, subsidized loan for eligible AB 540 undergraduate and graduate students. It helps cover the cost of attending Sac State.

Eligibility Requirement
To be considered for the DREAM Loan, a student must:

• File a valid California Dream Act Application (CADAA)

• Be an undergraduate or graduate student

• Meet Satisfactory Academic Progress (SAP)

• Have a verified AB 540 affidavit on file with the University

• Be enrolled at least half-time (i.e., 6 units undergraduate, 4 units graduate)

• Demonstrate financial need

• Not be in default on a student loan
  

T-Visa holders:

T-Visa holders should file a FAFSA and may also be considered for DREAM Loan eligibility

DREAM Loan Details

• Annual Loan Limit: up to $4,000 per academic year.

• Life-time limit is $20,000 for undergraduate students.

• The interest rate is tied to the Federal Direct Subsidized Loan rate and may change each year for new loans.

• Repayment options include standard and income-based plans.

• Students who accept the Dream Loan must complete a promissory note and entrance loan counseling with ECSI, a third-party loan servicer.

• Visit heartland.ecsi.net

• Under Download Forms, search for California State University (Dream Loans)

• The loan does not accrue interest as long as the student is enrolled at least half-time, during periods of approved deferment, and during a six-month grace period after they graduate or leave school.

Nursing Loan

Federal Nursing Loan are available to eligible undergraduate and graduate students admitted to the School of Nursing in the College of Health & Human Services who demonstrate financial need.

Funds are limited and awarded on a first-come, first-served basis. Sacramento State administers the Nursing Student Loan, and it is serviced by ECSI, a third-party loan servicer.

Eligibility Criteria

To be considered for the Nursing Loan, a student must:

• File a valid Free Application for Federal Student Aid (FAFSA)

• Be admitted to the clinical portion of Nursing Program
• Meet Satisfactory Academic Progress (SAP)
• Be enrolled at least half-time (i.e., 6 units undergraduate, 4 units graduate)

• Demonstrate financial need
• Not be in default on a student loan

Nursing Loan Details:

• Annual Loan Limits: Up to $6,000

• Interest Rate: Fixed at 5%

• Available to Nursing students enrolled in at least half-time.

• Financial need is determined using:

• Cost of Attendance

• Student Aid Index (SAI) from the FAFSA

• Other financial aid received

• The federal government pays the interest that accrues while the borrower is in an in-school, grace, or deferment status

• Repayment begins nine months after graduation or when enrollment drops below half-time.

• Students who accept the Nursing Loan must complete additional loan requirements, including a promissory note before funds can be disbursed.

Alternative (Private) Student Loans

Alternative loans – also called private student loans - are designed to help cover college costs after other financial aid options have been used.

These loans are not federal loans and are offered by private lenders. They should be considered only after you have explored all other lower-cost financial aid options, such as:

• Grants

• Scholarships

• Federal Direct Student or Parent Loans

Complete the Financial Aid Application First

The Financial Aid & Scholarships Office strongly encourages all students to complete the Financial Aid Application. Submitting an application allows our office to review your eligibility for federal, state, and institutional aid that may reduce or eliminate the need for a private loan.

Federal Loans vs. Private Loans

Before borrowing it is important to understand the difference between federal and private student loans.

Federal Student Loans

• Offer flexible repayment options required by law, including income-driven repayment plans

• May include loan forgiveness options

• Available to most students regardless of income

Alternative (Private) Student Loans

• Interest rates may be fixed or variable and can change over time

• Interest rates and approval are often based on the borrower’s and/or co-signer’s credit history

• May include fees that vary by lender

• Do not offer the same repayment protections or forgiveness options as federal loans

Students are encouraged to carefully review the interest rate, fees, and repayment terms of any private loan before deciding.

Eligibility for Alternative Loans

Alternative loans that require school certification are available only to students who are admitted to a degree-granting program.

We are unable to certify alternative loans for: Open University, Certain certificate programs, Career-enhancing seminars or workshops. We are also unable to certify Parent Alternative Loans.

Loan eligibility must match the student’s academic program. Example: Teaching Credential students are considered 5th-year undergraduate students.

Loan Disbursement

• Funds for certified loans are received by Electronical Funds Transfer (EFT) from lenders no earlier than one week before the start of the semester.

• Loans certified are subject to a minimum 10-day right-to-cancel period before funds are released

• Sacramento State will disburse loan funds once funds have been received by lender.

Self-Certification Form

No matter which private loan you choose, you must complete a Private Education Loan Applicant Self-Certification form before your loan funds can be disbursed. Your lender will provide this form to you during the application process.

Final Disclosure and Right-to-Cancel Period

Under federal law, your lender will send you a final disclosure statement after you sign your promissory note. This document confirms your loan’s terms and conditions.

Once you receive the final disclosure, your right-to-cancel period begins. This period lasts three to six business days, during which you may cancel the loan by contacting your lender.

Your lender cannot release your loan funds until this right-to-cancel period has ended.