How Undocumented Students Can Access Financial Aid for College

One of the first roadblocks undocumented immigrant youths living in the U.S. might face because of their status is learning they are ineligible for federal financial aid like student loans and the Pell Grant, used to pay for college.

When Damian, an undocumented immigrant who preferred to only give his first name, decided he wanted to study beyond high school, he relied on private scholarships and paid out of pocket to cover the remaining tuition bills at a local community college.

"I started to grasp what it meant to be who I am," Damian says. "It became frustrating and difficult, because this is when the burden of being undocumented really started settling in."

Achieving a community college education required sacrifices, like working 12-hour weekend shifts instead of spending time with friends and eating at McDonald's on a daily basis. To make it to the next level and pursue his passions for public speaking and teaching, he went on to earn a national scholarship for undocumented students and admission to the University of Illinois--Chicago.

[Read: 11 Private Scholarships to Help You Pay for College.]

Earning TheDream.US national scholarship offered him a rare moment of relief from the burden of his immigration status, he says.

"I remember opening that email while I was at work and being so happy that everything would fall into place for me, finally. I don't have to deal with this uncertainty, which a lot of my undocumented friends talk about, of not being able to know what's next in your life," Damian says. "I want to be an educated person, I want to contribute, and I want the United States to view me as a person who is working hard. I don't want this negative image placed on me. I want to prove to myself that I deserve to be here, I deserve to be a citizen and I deserve more."

Undocumented youths, often referred to as "Dreamers," based on never-passed proposals in Congress called the DREAM Act that would have provided legal protection for young immigrants, increasingly have more options to help pay college costs. Beyond scholarships intended for undocumented immigrants, students can seek out financial aid from private sources, aid from certain states that offer it to undocumented residents and in-state tuition provided to undocumented residents in some states.

Still, opportunities like these are limited. They can vary widely depending on the student's state of residence and his or her immigration status -- particularly whether a student has been granted a status known as Deferred Action for Childhood Arrivals, or DACA, which allows undocumented immigrants who were brought by their parents to the U.S. before the age of 16 protection from deportation and permission to work legally. President Donald Trump tried to terminate DACA in 2017, but with pending litigation, only renewals in the program have been allowed to continue temporarily.

Find Scholarships for Undocumented Immigrants

As the nation's largest scholarship program for undocumented immigrants, TheDream.US provides a national scholarship worth up to $14,500 for an associate degree and $29,000 for a bachelor's degree. This scholarship, which is renewable each year, can also include an additional annual stipend of $1,000 for books, supplies and transportation.

TheDream.US also offers an Opportunity Scholarship for students in states that don't offer in-state tuition to undocumented youths or don't allow them to attend college. Covering tuition, fees, on-campus housing and meals at a partnering college, this award of up to $80,000 for a bachelor's degree is renewable annually.

Many undocumented students are extremely motivated to attend college, says Gaby Pacheco, program director at TheDream.US, but "then the sticker price hits them, and they're not eligible for the FAFSA, not eligible for these scholarships. They have the desire to go to school, they get accepted, then they're left with the bill." But students who receive a scholarship from TheDream.US typically pay little to nothing for college, she says.

[Read: Scholarships Help Undocumented Students Pursue College Dreams.]

Other scholarships to consider include the Hispanic Scholarship Fund's award, which is open to citizens, permanent legal residents, DACA or eligible noncitizens, and Golden Door Scholars, which is open to students who have DACA status. Pacheco says there are also increasingly some small, local scholarships throughout the country that no longer require citizenship.

While there are other options for financial aid from private sources, seeking private loans can be a challenge, Pacheco says, because an undocumented student may have limited access to family members who have a Social Security number and can co-sign a loan.

Apply for State Financial Aid

Recently, states like New York, Connecticut and New Jersey have made moves to join a handful of other states in allowing eligible undocumented students to access state financial aid.

In New York, for example, undocumented students who meet the eligibility requirements can apply for state awards like the Excelsior Scholarship, a free-tuition program; the New York State Tuition Assistance Program, which awards students up to $5,165 annually; and other state scholarships.

[Read: 17 States Offer Tuition-Free College Programs.]

California is one of the friendliest states for undocumented students planning to apply to college, says Daniel Alfaro, program manager of Undocumented Student Services at the University of California--San Diego. At the school, he says, undocumented students have access to legal services and other supports, regardless of their immigration status.

"About 85 percent of the students on our campus rely on DACA for employment and things like that," Alfaro says. "Their fear is that with the cancellation of the program, they would not be able to come to school and essentially be kicked out, which is not true, and lose their financial aid, which is also not true. In our state, we don't take into account whether they are documented or not to get financial aid."

Take Advantage of In-State Tuition Opportunities

Some states allow undocumented students to pay the in-state tuition rate at public colleges, such as in California and Texas, the latter of which was the first state to offer this benefit.

"I get calls from students from Georgia, Alabama, North Carolina, asking if there's a way for them to come to this state and pay in-state tuition," Alfaro says. But usually, "even if they come, they don't meet the basic requirements."

Twenty states and the District of Columbia have varying laws allowing undocumented students to access in-state tuition rates. In those states, students often must have resided in the state for a number of years before becoming eligible to pay in-state tuition.

"It really depends, for an undocumented student right now, where they live. It also depends on the institution," Pacheco says, in reference to the ability to access financial aid. "It's not anywhere near where your average American student who is low income and low resources can go to any of these institutions and apply for the Pell Grant," she says; however, "it has become a lot better."

Trying to fund your education? Get tips and more in the U.S. News Paying for College center.

Emma Kerr is the paying for college reporter at U.S. News & World Report. Prior to joining U.S. News, she covered education in Maryland for the Frederick News-Post and made stops at the Chronicle of Higher Education and the Daily Beast, among others. She graduated from the University of Michigan--Ann Arbor, where she studied English and international studies and began her career as a news reporter at its student newspaper, The Michigan Daily. You can connect with her on Twitter at @EmmaRKerr.