California Student Loans: State, Federal, and Private Options

College in California can come with a high price tag. Full-time California residents pay an average of $15,588 per year in tuition at University of California schools, while California State University students pay an average of $7,500 annually in tuition and fees, according to a 2026 analysis from the Public Policy Institute of California (PPIC).

To help cover these costs, California students can access several financial aid options and student loans. 

Current private student loan rates

Student loan options for California students

California DREAM Loan

The California DREAM Loan is a need-based student loan available to undocumented students who qualify under AB540. You don’t need Deferred Action for Childhood Arrivals (DACA) status to qualify, but you must attend a University of California or California State University campus and meet your school’s eligibility requirements.

The loan comes with a fixed interest rate that matches the federal Direct Subsidized Loan rate for that academic year. Eligible students can borrow up to $4,000 per year, with a maximum aggregate limit of $20,000 at one institution.

To apply, submit the California Dream Act Application (CADAA). Your school will use the application to determine your eligibility for state and school-based financial aid programs.

Federal student loans

If you qualify for federal financial aid, start by submitting the Free Application for Federal Student Aid (FAFSA). The FAFSA determines your eligibility for federal student loans, grants, and other forms of aid.

For new borrowers starting school during the 2026-27 academic year, federal student loan options include:

• Direct Subsidized Loans: Available to undergraduate students with demonstrated financial need. The federal government pays the interest while you’re enrolled at least half-time and during your six-month grace period after leaving school. Eligible students can borrow between $3,500 and $5,500 per year.
• Direct Unsubsidized Loans: Available to eligible undergraduate, graduate, and professional students regardless of financial need. Undergraduate students can borrow between $5,500 and $12,500 annually, depending on their year in school and dependency status. Graduate and professional students can borrow up to $20,500 per year.
• Parent PLUS Loans: Available to parents of dependent undergraduate students. Starting with the 2026-27 school year, parent PLUS loans for new borrowers are capped at $20,000 annually with a lifetime limit of $65,000 per child. Continuing borrowers may be able to keep using these loans to cover the full cost of attendance for up to three additional school years.

Private student loans

Private student loans are offered by banks, credit unions, online lenders, and some schools. Unlike federal student loans, private loan terms, interest rates, and eligibility requirements vary by lender.

Your credit score and credit history play a role in qualifying for a private student loan and securing a competitive interest rate. In general, borrowers with stronger credit are more likely to qualify for lower rates, which can reduce the total cost of borrowing over time.

However, Jack Wang, college financial aid adviser and host of the Smart College Buyer podcast, warns students and families not to focus only on the advertised interest rate.

“Families really need to compare loan types and not just be entranced by the low rate, which they may not even qualify for,” says Wang, noting that federal student loans offer more valuable benefits like income-driven repayment and loan forgiveness that students won’t find through private lenders.

California state-based financial aid programs

Grants

California offers eligible students several state-sponsored grants that don’t need to be repaid: 

• Cal Grant Program: Offers aid to students with exceptional financial need. Award amounts vary depending on financial need, school type, and students’ enrollment status. 
• Middle Class Scholarship: Available to low- and middle-income undergraduate students, this program covers a portion of attendance costs. For foster youth, the program covers the entire cost of attendance after their personal expected contribution and other free financial aid.
• Dream Act Service Incentive Grant: Eligible undocumented students and DACA recipients can earn grants by completing community or volunteer service, with up to $4,500 available per academic year.
• Chafee Grant: The California Chafee Grant for Foster Youth offers up to $5,000 per academic year (reduced to $4,500 for the 2025-26 academic year) to foster youth to use at any eligible school, both in and out of California.
• Law Enforcement Personnel Dependents Grant: This need-based program covers up to the Cal Grant award amount or the student's remaining unmet need for the dependents and spouses of California peace officers, firefighters, law enforcement, and Department of Corrections employees who died or were disabled in the line of duty.
• Golden State Teacher Grant: Students enrolled in education programs approved by the Commission on Teacher Credentialing (CTC) can receive financial support toward their schooling at a California institution.
• Public Interest Attorney Loan Repayment Program: If you're an attorney practicing in an area of public interest in California, you could receive up to $11,000 toward your student loan repayment if you meet certain service requirements.
• Cal-HBCU Transfer Grant: This program offers up to $5,000 to students who transfer from California community colleges to eligible Historically Black Colleges and Universities (HBCUs) in California.

Students are automatically considered for many of these programs after submitting the FAFSA or CADAA.

Scholarships

California students from low- to middle-income households may qualify for the California Middle Class Scholarship. To be eligible, you must attend a University of California, California State University, or California Community College school and meet the program’s income and eligibility requirements. Award amounts vary based on your school’s cost of attendance and the amount of other financial aid you receive for the academic year. 

Other programs

California also offers programs that can help lower smaller education costs that add up over time. For example, the California College Promise Grant waives enrollment fees for eligible students attending participating California community colleges. To qualify, you must apply online for the program and meet your school’s eligibility requirements.

How much does college cost in California?

College costs in California vary depending on the type of school you attend. According to a February 2026 analysis from the Public Policy Institute of California (PPIC):

• University of California (UC) schools: Full-time California residents pay an average of $15,588 per year in tuition.
• California State University (CSU) schools: Full-time California residents pay an average of $7,500 annually in tuition and fees. CSU tuition is also expected to increase by 6% annually over the next three years.  

Other ways to help pay for college 

• Private scholarships and grants: California isn’t the only source of free financial aid. You can also find scholarships and grants through nonprofits, professional associations, employers, corporations, and community organizations. 
• Part-time employment: Working while enrolled in school can help you cover everyday expenses like groceries, transportation, and housing costs. Consider looking for a campus job or a position related to the field you want to work in after graduation.
• Federal work-study: Federal work-study is a financial aid program that allows undergraduate and graduate students to earn money through part-time work. Jobs may be on or off campus and are often related to your field of study.