More Stanislaus State ‘Dreamers’ may get loans thanks to new law

Fernando Amador Ambriz is a junior at Stanislaus State University who has been able to attend college due to his eligibility for the California DREAM Loan Program.

A new California law will soon help undocumented, immigrant students like Ambriz, a communication major, pay for a professional or graduate degree program.

“Essentially, without this bill, I would have never thought to pursue a master’s degree,” Ambriz said. “I’m just finishing up my B.A., but with this bill, it gives me the hope to pursue a master’s degree, or who knows, maybe a Ph.D.”

Senate Bill 354 will go into effect starting in the 2020-21 academic school year, expanding eligibility for the California DREAM Loan Program to graduate programs at California State and University of California campuses. It is estimated that 500 graduate students will become eligible to receive loans under this bill, according to the CSU and UC.

The California DREAM Loan Program currently provides eligible AB 540 undergraduate students the option to take out subsidized loans to cover the cost of attendance, according to the Stanislaus State University financial aid website. Students can be offered a loan up to $4,000 per academic year and a maximum of up to $20,000. Requirements include having a valid California DREAM Act application on file, being enrolled at least half-time, and meeting academic progress standards.

SB 354, as authored by Senator Maria Elena Durazo (D-Los Angeles), supplements existing Assembly Bill 540, which exempts specified California nonresidents from paying nonresident tuition at CSU, UC and the California Community Colleges.

“I was approached by, again, young people who said, ‘Well, we can only go so far, where we run into a similar barrier: not having enough money to pay for all of (our) expenses,’” Durazo said. “That led us to come up with the idea that for graduate studies, they would be able to participate in the current California DREAM loan program.

“I thought it was the right thing to do to allow young people to keep up with their studies, as far as they want to go.”

María José Fernández Flores, the Legislative Advocate for the California Catholic Conference, said SB 354 does not fiscally impact the state because the DREAM loan program will not be receiving additional funding.

Instead, graduate students who qualify for the program will be given access to the funds already allocated to undergraduate students, who will continue to receive higher priority.

“For undocumented communities, we recognize the fact that they have unalienable rights to having access to education and work,” Flores said. “By supporting SB 354, we are enabling the undocumented community. They are a vulnerable community that is sometimes overlooked (and) we want to empower, support, and advocate for them.”

However, according to an Assembly Appropriations committee bill analysis, additional funding may be required to sustain the loan program for both undergraduate and graduate students. Annual costs are estimated to be $2 million, if all eligible graduate students borrow the maximum loan amount. Only half of the amount would affect the General Fund, since the CSU and UC are required to match contributions to the program with discretionary funds.

“We’re going to try it with the current amount, and hopefully it doesn’t exclude too many [students]. If it does, then maybe we have the case to add funding,” Durazo said.

Katherine Squire, the Regional Affairs Director for Region II of the Student Senate for California Community Colleges, said SB 354 is a huge win for graduate students eligible for the California DREAM loan program.

“I feel this bill will help them with getting the financial aid they don’t qualify for naturally because they are not citizens,” Squire said.

However, Squire said she is concerned about the students’ overall financial literacy.

“Undocumented students might take out loans, but may not understand what it means to take out a loan and how to budget the money appropriately,” Squire said. “They might end up with a huge amount of debt on their shoulders.”

“To make this legislation stronger, I think there would have to be some mechanism in place to get financial literacy training for students. Not just undocumented ones would benefit from this.”

Polet Hernandez Perez, the Dreamers Project Coordinator at Stanislaus State University, said SB 354 will give undocumented students the courage to continue to graduate school.

“In my perspective, usually undocumented students don’t receive enough (financial assistance), since they don’t have access to federal or state money. It is more restricted,” Perez said. “But even though it might not be enough to cover all expenses, I believe it will create a path to affordability.”

This story is part of a collaborative project between McClatchy and seniors in the journalism program at Sacramento State University. For more information about the program, or to send a message, visit facebook.com/sacstatejournalism.