California Student Loans: State and Private Options in 2025

The average cost of attending a four-year public university in California was more than $24,000 in 2021, according to the latest data from the National Center for Education Statistics. With the high cost of college, more students than ever are relying on student loans and other financial aid programs to help fund their education.

Luckily, California students have plenty of financial aid options available, including both state and federal loan and grant programs. If you're planning to attend school in California, this guide can help you learn about your funding options.

Current private student loan rates

What student loan options are available to California students?

“Generally, the student loan options for California students are the same as anywhere in the United States,” says Robert Farrington, a California-based student loan expert and founder of The College Investor. “There are federal student loan options, followed by private lender options.”

• Federal student loans: The U.S. Department of Education offers Direct Subsidized Loans to undergraduate students with financial need. It also offers Direct Unsubsidized Loans to both undergraduate and graduate students, regardless of need. Finally, Direct PLUS Loans are available to graduate students and parents of dependent undergraduate students.
• Private student loans: Many banks, credit unions, and online lenders offer private student loans. While the terms generally aren't as favorable as federal loans, and they have certain credit requirements, they can be a good option to supplement federal loans.
• California DREAM Loan: The state of California offers a student loan program to help undocumented students who have graduated from a California high school to attend college. These loans are subsidized, and the interest rate is set to match the rate on federal subsidized loans.

The “Big Beautiful Bill Act” makes sweeping changes to federal student aid starting in July 2026, including the elimination of grad PLUS loans and lower borrowing limits for certain loans. As a result, more California students may have to apply for private loans to cover their higher education costs.

What is the Cal Grant and how does it work?

The California Student Aid Commission offers a grant program called the Cal Grant, which doesn't have to be repaid.

“The Cal Grant is a state grant program similar to the federal Pell Grant,” says Farrington. “It can provide funds to pay for eligible expenses, including tuition, room and board, and even assistance for vocational programs. This is a good option for low-income students looking to further their education.”

The Cal Grant is a need-based grant, meaning family income and asset limits apply. It's available to students who have been California residents for at least a year and are attending a qualifying California school.

You don't have to complete a separate application for the Cal Grant. Instead, your eligibility is based on your Free Application for Federal Student Aid (FAFSA) or your California Dream Act Application (CADAA).

The amount you can get from a Cal Grant depends on your family's financial situation and the school you're attending. Grant amounts range from $1,094 to $15,400.

Other state-based financial aid programs in California

“The Cal Grant is only one of many different grants that are available for middle-income families,” says Brian Safdari, the founder of the California-based College Planning Experts.

Several other state-based financial aid programs can help California families pay for college. Here are some other options to look into:

• 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 up to $20,000 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.
• California State Loan Repayment Program: Funded by the Health Resources and Services Administration and the Department of Health and Human Services, this program offers loan repayment assistance to doctors, dentists, and other health care professionals.
• 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.

In addition to these state-based programs, Safdari also recommends looking into school-based options, including grants and scholarships.

“Each college offers additional 'need-based' aid, but also may offer merit and institutional grants,” says Safdari. “Parents would need to do research at least one to two years in advance to learn about all the different grants available by the universities.”

Finally, there are many private scholarships and grants available to students in California. These can take a bit more effort, as you have to find and apply for them separately, but they can help fill in any funding gaps and minimize the amount you have to borrow.

How much does college cost in California?

The cost of college in California is higher than the national average for both public and private four-year universities, but is lower than the national average for community colleges.

The state is unique in that it has two different state university systems: Cal State University (CSU) and the University of California (UC). CSU has 23 schools, while UC has just 10. UC schools are considerably more expensive.

Keep in mind that the numbers in this table represent in-state tuition numbers. If you're a resident of a different state and are planning to attend a California school, you'll likely pay far more for your education.