The Best Student Loans Open to DACA Recipients

DACA recipients have access to a variety of financial aid options, from state-sponsored aid to private loans and scholarships. Although DACA doesn’t provide access to federal student aid, it opens pathways for undocumented students to pursue higher education.

This guide reviews the best private lenders and state-based options for DACA students, along with alternative financial aid resources like scholarships, to help make college funding accessible.

Lender	Best for	Our rating
State aid	State financial aid	Not rated
College Ave	U.S. cosigners	5/5
Sallie Mae	Cosigner release	4.8/5
Earnest	Large loans	4.7/5
MPOWER	International students	4.6/5
Ascent	Graduation reward	4.4/5

Federal and state DACA financial aid for DACA students

Federal aid isn’t available to DACA students because only U.S. citizens, permanent residents, and specific eligible noncitizens qualify. Since DACA status is temporary, it doesn’t meet federal eligibility requirements.

However, state aid may still be an option. Some states, like Minnesota, offer programs specifically for DACA students. Minnesota’s DREAM Act awards eligible students a Minnesota State Grant worth nearly $2,000 that doesn’t need to be repaid. Since certain types of DACA financial aid can be first-come, first-served, applying early is recommended.

To explore your options, consider contacting your school’s financial aid office or your state’s student aid commission.

Keep in mind that some states may require you to fill out the Free Application for Federal Student Aid (FAFSA) to determine eligibility for state aid, in which case a Social Security number is necessary. Federal guidelines also provide instructions for filling out the FAFSA’s tax and residence information for DACA students.

Private student loans for DACA students

If you’ve considered scholarships, grants, and state aid, your next option is private student loans. Banks, credit unions, and online lenders offer these loans. Qualification often depends largely on the borrower’s credit history, and a U.S. citizen or permanent resident may be required to cosign on the loan.

Here are five lenders that offer student loans for DACA students. Note the information below is based on the lenders’ undergraduate loans. All lenders also offer graduate student loan options.

College Ave

Best for DACA students w/ a SSN

5.0 _/5

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Why it’s one of the best

College Ave is an innovative private student loan lender that was founded by former Sallie Mae executives. At College Ave, students can apply for undergraduate, graduate, and career loans. Loans are also available for parents who want to help their children pay for school.

Students can choose from fixed or variable-rate loans, with no origination fees or application fees. There are multiple repayment options, and no payments are required while you’re in school. A rate discount is available with autopay enrollment.

College Ave does not list any specific eligibility requirements for DACA students interested in private loans. However, a Social Security number and qualified cosigner are required for all borrowers, so if you don’t have one, you won’t be eligible to get a loan through College Ave.

• Cosigner is required
• Choose your repayment terms
• Borrow up to 100% of the cost of attendance

Loan details

Rates (APR)	4.22% – 17.99%
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	5, 8, 10, or 15 years

Sallie Mae

Best for Cosigned Loans

4.8 _/5

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Why it’s one of the best

Sallie Mae is an established name in the student loan space. Founded in 1972 as a servicer of federal student loans, it is now one of the top private student loan originators in the U.S. Loans are available for undergraduate and graduate study, as well as career training.

The minimum loan amount is $1,000, and it’s possible to borrow up to 100% of the cost of attendance, less any other financial aid received. You can apply if you’re enrolled full-time, half-time, or less than half-time, taking classes online or on-campus.

Sallie Mae offers DACA student loans, though the website doesn’t specify any set requirements needed to apply or be approved, other than a cosigner. The cosigner must be a U.S. citizen or permanent resident who meets minimum credit score and income guidelines.

• Loans offered for multiple study programs
• Reduced interest rate when you choose in-school repayment
• No prepayment or origination fees

Loan details

Rates (APR)	4.15% – 15.70%
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	10 – 15 years

Earnest

Best for Imperfect Credit

4.7 _/5

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Why it’s one of the best

Earnest specializes in low-interest student loans for undergraduate and graduate study. The company was founded in 2013 as a merit-based lender, meaning credit history isn’t the only factor considered for approval. Cosigners are encouraged, though not required for DACA students.

DACA students applying with a cosigner must ensure the cosigner meets certain requirements. Earnest looks for cosigners who are U.S. citizens or permanent residents, have a minimum credit score of 650, have never filed for bankruptcy, make a minimum of $35,000 annually, and live in a state in which Earnest operates.

The maximum loan amount is $250,000, and you can choose from multiple repayment terms. Take up to a nine-month grace period before you must begin making full payments on your loans. You also have the option to skip a loan payment once per year.

• Skip a payment once per year
• 9-month grace period
• Cosigners must meet specific requirements

Loan details

Rates (APR)	4.17% – 16.85%
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	5, 7, 10, 12, or 15 years

MPOWER Financing

Best for International & DACA Students

4.6 _/5

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Why it’s one of the best

MPOWER Financing offers private student loans to international students who enroll in U.S. or Canadian schools. DACA recipients and refugees are also eligible to apply for loans.

Borrowers must be admitted to an approved school to qualify for funding. Loan amounts range from $2,001 to $100,000 and can be used to fund almost any degree program. MPOWER loans have no cosigner requirements.

DACA students may be eligible for loans through MPOWER Financing if they’re undergraduate or graduate students within two years of graduating or beginning a one- or two-year program. MPOWER has no collateral, credit history, or cosigner requirements.

• No cosigner, collateral, or credit history requirement
• Repay your loan in any currency or location around the world
• Only offers loans to students attending one of 350 approved schools

Loan details

Rates (APR)	13.98% – 17.08%
Loan amounts	$2,001 – $100,000
Repayment terms	10 years

Ascent

Best for Multiple Loan Options

4.4 _/5

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Why it’s one of the best

Ascent offers scholarships and undergraduate and graduate student loans for DACA students. Cosigned loans are available to DACA students with creditworthy cosigners who are U.S. citizens or permanent residents. You can apply without a cosigner if you meet income and credit requirements. 

Note that cosigner release is unavailable for loans where the primary borrower is not a U.S. citizen or permanent resident. 

DACA students must also provide documentation from the U.S. Department of Homeland Security or U.S. Citizenship and Immigration Services (USCIS) that indicates their DACA status doesn’t expire within six months of the end of the enrollment period for which they’re requesting loan funding.

• Cosigned and non-cosigned loans for DACA students
• Borrow up to 100% of the cost of attendance
• No application, origination, or disbursement fees

Loan details

Rates (APR)	3.79% – 16.20%
Loan amounts	$2,001 – $200,000
Repayment terms	5, 7, 10, 12, or 15 years

Can DACA students get financial aid? 

DACA benefits do not include access to federal financial aid programs, including federal student loans and grants or work-study funding. Undocumented students can qualify for other types of financial aid, including state-sponsored student loans or grants, school-based aid, and scholarships. 

Public or private organizations may offer scholarship funding. Eligible students may apply for multiple awards to cover college education costs. Here are some of the top scholarship options to consider for DACA recipients:

• Golden Door offers scholarships for undocumented DACA students, as well as mentorship throughout college and beyond with internships and professional development. Applicants must have a demonstrated financial need and live in the U.S. for at least four years before applying.
• TheDream.US National Scholarship Award will cover tuition and fees up to $16,500 for an associate degree and $33,000 for a bachelor’s degree. Over 80 partner colleges in multiple states participate in the program.
• TheDream.US Opportunity Scholarship is designed for DACA students who live in targeted, locked-out states where they’re ineligible for in-state tuition rates. The award provides up to $80,000 to cover a bachelor’s degree’s tuition, fees, on-campus housing, and meals.

What if you can’t get approved for a DACA student loan?

If private student loans aren’t an option, you may still have a few alternative paths for DACA financial aid.

Option	Best for	Key details
Scholarships	Funding doesn’t need to be repaid	Often merit, need, or school-based
Personal loans	Flexible funding options that doesn’t always require citizenship	Not student-specific, may come with higher rates, fees
State-based DACA financial aid	DACA students living in states that extend in-state tuition or grant programs	Varies widely. Some states limit access students without documents.

Scholarships 

Scholarships are a terrific option when exploring DACA financial aid because you don’t need to repay them. Therefore, it’s to your advantage to apply for scholarships before applying for loans or when you complete the FAFSA if you’re eligible.

Here are some tips to keep in mind as you search for DACA scholarships:

• Some awards may be need-based, while others are merit-based.
• You may need to be enrolled or planning to enroll at an accredited school to qualify.
• Awards can be location-specific, meaning you need to live or attend school in certain counties or regions to be eligible.
• Scholarships may require you to submit a personal essay as part of your application.
• Certain awards may require you to have at least one parent who is representative of a specific ethnic group.

If you’re unsure where to look for scholarship funding, your school’s financial aid office may be able to offer some resources to help you start your search. 

Personal loans

They aren’t private student loans, but you might qualify for a personal loan as a DACA student. A personal loan is a lump sum you can borrow for almost any need. You repay the loan over time with interest according to the lender’s schedule.

Certain lenders offer personal loans to nonresidents; some even have DACA-specific loans. Personal loans can provide funding for school when you’ve exhausted other options, but the rates you pay might be higher compared to private student loans. Depending on the lender, you may also pay origination fees for the loan.

Repayment terms tend to be shorter, and loan limits may be less than what you could get with private student loans. Similar to DACA student loans, personal loans may require a cosigner for approval if you’re not a U.S. citizen or permanent resident. And unlike student loans, cosigner release usually isn’t an option for personal loans.

State-based DACA financial aid programs

The lack of DACA financial aid at the federal level has prompted many states to offer discounted tuition rates to undocumented students. At the time of writing, 24 states and the District of Columbia have provisions that extend in-state tuition rates to DACA students. See if your state is on the list.

Here are a few tips to keep in mind as you look for state-based DACA financial aid programs:

• Some states/schools may extend in-state tuition rates to undocumented students through a Board of Regents decision rather than a formal policy.
• Certain states actively block access to in-state tuition rates for undocumented students. 
• A handful of states exclude undocumented students from enrolling at any postsecondary public institution altogether.

If you’re unsure what options exist in your state, you can contact your school’s financial aid office for help. You can also connect with your state’s financial aid commission or department of higher education to discuss what kind of financial aid may be available for DACA students.

FAQ

Can DACA students qualify for federal student loans?

No, DACA students are not eligible for federal student loans because they don’t meet the citizenship or eligible non-citizen requirements. However, DACA students can explore private student loans, scholarships, and grants designed for undocumented or DACA students.

How can DACA students increase their chances of getting approved for a private student loan?

To increase their chances of approval, DACA students should consider applying with a creditworthy cosigner who is a U.S. citizen or permanent resident. Building a strong credit history, if possible, can help improve their chances of getting approved and securing better loan terms.

Do DACA students have access to in-state tuition rates?

In some states, DACA students may be eligible for in-state tuition rates at public colleges and universities. Policies vary by state, so it’s important to check with the specific institution or state’s higher education office to understand the eligibility criteria and application process for in-state tuition.

How we selected the best DACA financial aid options

LendEDU evaluates student loan lenders to help readers find the best student loans. Our latest analysis reviewed 725 data points from 25 lenders and financial institutions, with 29 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Recap of the best financial aid for DACA students

Lender	Best for	Our rating
State aid	State financial aid	Not rated
College Ave	U.S. cosigners	5/5
Sallie Mae	Cosigner release	4.8/5
Earnest	Large loans	4.7/5
MPOWER	International students	4.6/5
Ascent	Graduation reward	4.4/5