DACA recipients who are planning to go to college and need financial assistance can apply for certain types of student loans. DACA (Deferred Action for Childhood Arrivals) provides undocumented citizens who came to the U.S. as children with protections and opportunities, such as applying to colleges and taking out specific types of student loans.
Learn more about the loans DACA recipients may be eligible for (sometimes referred to as DACA student loans), and discover other types of financial aid that could help make college more affordable.
Overview of DACA and Student Aid
There are more than 180,000 DACA-eligible college students in the U.S., according to the most recent data from the American Immigration Council. Approximately 85% of these students are enrolled in public colleges and universities.
DACA recipients are not eligible for federal student loans or other federal aid, but they may be able to take out private student loans as long as they meet the eligibility requirements. DACA recipients may also qualify for scholarships and grants, financial aid from their state, and aid from the school they’re attending.
Currently, 25 states and the District of Columbia provide access to in-state tuition to undocumented students, including DACA recipients. These students qualify for in-state tuition rates, which are typically much less expensive than out-of-state tuition rates.
In five states, only DACA recipients get access to in-state tuition; other undocumented students do not. Nine states block in-state tuition access for all undocumented students, including DACA recipients, and three states prohibit undocumented students from enrolling in some or all public colleges.
Federal Student Loan Eligibility for DACA
DACA recipients cannot take out federal student loans offered by the Department of Education. To qualify for federal student loans, an individual must be a U.S. citizen, a legal permanent resident, or meet special criteria that classifies them as a member of a small group of eligible noncitizens (residents of American Samoa, for example).
However, there are other kinds of financial assistance for college that DACA recipients can pursue. They may be eligible for certain types of financial aid, including funding or scholarship programs from their college and state of residence. And there are some student loans for DACA recipients, such as private student loans, these students can explore.
FAFSA and DACA Students
To be considered for aid from their state or school, it’s generally recommended that DACA recipients fill out and submit the Free Application for Federal Student Aid (FAFSA) as long as they have a Social Security number (SSN), which is required for the form. If they opt to fill out the FAFSA online, they’ll also need their SSN to set up an account at studentaid.gov.
When they get to the section of the form that asks about citizenship status, DACA recipients must choose the “neither U.S. citizen nor eligible noncitizen” answer. State of residence is the state where they have their permanent home.
The FAFSA will typically be processed within three days if it is submitted electronically and within 10 days if submitted on paper. Once the Department of Education has processed the form, the information will be sent to their school, which will then determine what kind of student aid they might be eligible for.
Private Student Loan Options for DACA
DACA students may be able to take out private student loans. These loans are offered by banks, credit unions, and private lenders. Private student loans have fixed or variable rates, and the rate an individual might qualify for depends on their credit history, among other factors. This guide to private student loans provides more information on how these loans work.
In order to qualify for private student loans, DACA recipients may need a student loan cosigner who is a U.S. citizen or permanent resident. The cosigner agrees to repay the loan if the borrower defaults or is unable to pay their debt.
If an applicant doesn’t have a cosigner, it might be possible to find some private student loans for DACA students without a cosigner. As with any loan, it’s important for the borrower to make sure they’re comfortable with the rates and terms. And keep in mind that, as a borrower, you could choose to refinance student loans at some point in the future to obtain a lower rate or better terms at that time.
Finally, it’s important to note that with private student loans, a borrower doesn’t have access to the same federal protections and programs borrowers with federal student loans have. This includes federal forgiveness programs and income-driven repayment plans. Some private loans do offer private student loan forgiveness, so it can be wise to ask a lender if that’s an option.
Institutional and State Aid for DACA
Student loans aren’t your only option for paying for college as a DACA recipient.
Nineteen states plus the District of Columbia offer some financial aid or scholarships for DACA recipients and undocumented students. The states are:
• California
• Colorado
• Connecticut
• Hawaii
• Illinois
• Maryland
• Massachusetts
• Minnesota
• Nevada
• New Jersey
• New Mexico
• New York
• Oregon
• Rhode Island
• Texas
• Utah
• Vermont
• Virginia
• Washington
These same states also provide access to in-state tuition for DACA recipients and undocumented students. As mentioned, in-state tuition rates are typically much less expensive than out-of-state tuition rates.
Six other states give DACA recipients and undocumented students access to in-state tuition. These states are:
• Arizona
• Florida
• Kansas
• Kentucky
• Nebraska
• Oklahoma
Many schools also offer institutional aid to DACA recipients. For instance, Bates College in Maine, Emory College in Atlanta, and Occidental College in Los Angeles are just a few of the schools across the country that meet 100% of the demonstrated need for undergraduate undocumented students, including DACA recipients. Check with prospective colleges to find out what their policies are.
DACA recipients may also apply for scholarships through such programs as Golden Door Scholars, which provides scholarships for undocumented students studying for careers in STEM, nursing and business, and TheDream.US Scholarship Program, which covers tuition and fees at partner colleges in the award recipients’ state of residence.
The Takeaway
DACA recipients may have options to help them afford college. Although federal student loans aren’t an option, there are scholarship programs for undocumented students, as well as state-based and institutional aid they may qualify for, depending on the state they live in and the college they attend.
As a DACA recipient, you can also take out private student loans to help pay for school. And there’s the possibility to refinance your student loans in the future for better rates and terms if you choose to, as long as you meet the student loan refinancing eligibility criteria.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
FAQ
What documents are required for DACA students to get loans?
DACA students are not eligible for federal student loans, but they may be able to take out private student loans (in some situations, these may be called DACA student loans). In order to qualify, they might need a cosigner who is a U.S. citizen or permanent resident.
DACA recipients can also fill out the Free Application for Federal Student Aid (FAFSA) to see what financial aid they may qualify for from their college or state. To complete the FAFSA, they will need a Social Security number.
Can DACA students qualify for federal work-study?
DACA students are not eligible for federal student aid, including federal work-study. However they may be able to get other jobs on campus that are not part of the work-study program.
Are there scholarships specifically for DACA recipients?
Yes, there are a number of scholarships specifically for DACA recipients. For instance, Golden Door Scholars provides scholarships for undocumented students studying for careers in STEM, nursing and business, and TheDream.US Scholarship Program covers tuition and fees at partner colleges in the award recipients’ state of residence.
Photo credit: iStock/Eduard Figueres
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