The University of California has announced plans to annually invest $8.4 million to aid as many as three thousand undocumented students over the next three years.

"We are committed to continuing a path forward for undocumented students at the University of California," said President Janet Napolitano. "This funding will further strengthen the university's undocumented student initiative, and help ensure that these students receive the support and resources they need to succeed."

Plans call for $5 million to be annually dedicated to the school's Dream Loan Program each of the next three years. The Dream Program makes student loans available to undocumented students that are not eligible for federal aid.

Funds Earmarked for Various Needs

In addition, $2.5 million has been earmarked each year for student services, fellowship programs and such necessities as funds for textbooks. The school's Undocumented Legal Services Center will also receive $900,000 per

"From the earliest days of her presidency, Janet Napolitano has acted to ensure that our undocumented students are on equal footing with others seeking to fulfill their aspirations at UC campuses," said UC Board of Regents Chairman Monica Lozano. "These efforts have made the University of California a leader among universities across the nation in ensuring academic opportunity for undocumented college students."

Since joining the university in 2013, the former Homeland Security chief has made providing support for undocumented students one of her chief priorities.

Loan Interest Rates set at Fixed Levels

The loans offered through the program are structured to match the interest rates of federal student loans, which change each year. Currently, the rate is fixed at 4.29 percent.

"These loans are very important to undocumented students," UC media officer Claire Doan told NBC News. "Their status disqualifies them from receiving financial aid, which severely limits their access to student loans. And they have difficulty accessing private loans."