Student loans: medical, nursing, social work, and social welfare students: California Health Care Workforce Supplemental Loan Program.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Higher Education
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill creates the California Health Care Workforce Supplemental Loan Program to help eligible students pursuing medical, nursing, social work, or social welfare degrees access financial aid. It aims to address a funding gap created by changes to federal student loan programs, specifically the elimination of federal Direct PLUS Loans for graduate students. The program will provide loans with terms similar to those of federal Direct PLUS Loans as they existed on January 20, 2025, and will be funded through a dedicated state loan fund.
Key provisions
- Establishes the California Health Care Workforce Supplemental Loan Program.
- Defines eligible students based on residency, enrollment, federal loan application, and prior eligibility for a federal Direct PLUS Loan.
- Loans will have terms equivalent to federal Direct PLUS Loans as of January 20, 2025, with a capped interest rate.
- The program will be funded through the Health Care Workforce Supplemental Loan Fund.
- The commission will establish an application process and may share data with schools and the Department of Education.
- Maximum loan amount is determined by the ‘gap amount’ – the difference between cost of attendance and other financial aid.
- The loan origination fee will be capped at 4.228 percent.
- Eligible students will have access to the same repayment options as federal Direct Unsubsidized Loans.
Who is affected
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