DACA Financial Aid Options
If you're a DACA student, it may be hard to get student aid for college. Though your ineligibility for federal funds makes things more difficult, it is still possible to find money for school.
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While the federal government never passed the DREAM Act, former President Barack Obama signed an executive order titled Deferred Action for Childhood Arrivals in 2012, which opened up many options for undocumented or “DREAMer” students.
DACA, as the executive order is known, allows certain individuals to stay in the United States provided they meet the conditions. Those who are allowed to stay are offered a work permit and two years of protection from deportation. They can renew those benefits as long as they continue to keep their record clean.
Even though DACA students are not deported back to their home country and can continue to pursue higher education goals, they don’t have access to the same federal student aid programs as U.S. citizens do. That lack of funding availability can make it difficult for DACA students to attend college.
Many undocumented students want to attend college but their immigration status can stand in the way. This guide will review financial aid for DACA students from the federal government, states, and private companies.
On this page:
- Federal & State Financial Aid for DACA Students
- Private Student Loans for DACA Students
- Other Financing Options for DACA Students
Federal & State Financial Aid for DACA Students
DACA Students Should Still Fill Out the FAFSA, If Possible
Unfortunately, students under the DACA program are not eligible for any federal financial aid including Pell Grants or federal student loans. That also includes any federal program dependent on completion of the Free Application for Federal Student Aid, or FAFSA—typically seen as the first step to receiving federal aid.
That doesn’t mean, however, that DACA students shouldn’t complete the FAFSA anyway. There are many other state and local programs dependent on FAFSA data that are available to DACA students, so not filling out the FAFSA can result in missed opportunities and lost funding.
In order to complete the FAFSA, you need a Social Security number. Many DACA students may not have one; those who do, however, can complete the FAFSA and effectively sign-up for state and local student financial aid. When completing the FAFSA, consult the guidelines at studentaid.gov for instructions on how to fill out the tax and residence information.
Talk to Your Intended College’s Financial Aid Office or High School Guidance Counselor
You should also talk to the financial aid office of your chosen school or your high school guidance counselor to see what state-based options you may have.
Some states have their own forms. Minnesota, for instance, has a specific DREAM Act application that awards students a Minnesota State Grant worth almost $2,000 of funding that doesn’t need to be paid back. The state also offers in-state tuition rates for DACA students; many other states, however, charge DACA recipients out-of-state tuition rates even if they reside within that state.
Private Student Loans for DACA Students
Private student loans are offered by banks and lenders as an alternative or supplement to federal loans.
While many lenders will only offer loans to U.S. citizens or permanent legal residents, there are a few private loan lenders who will work with DACA benefit recipients and immigrants.
Citizens Bank
Rates (APR)
1.54% – 12.04%
Loan Amounts
$1,000 – $150,000
Cosigner
Required
Citizens Bank offers private student loans to DACA students with a qualified cosigner who is a U.S. citizen or permanent resident. The cosigner doesn’t have to be a parent (which could pose an obvious problem for DACA recipients); it can be an extended family member, friend, or another contact who is willing to cosign that has a good credit score.
- Variable rates: 1.54% – 9.65%
- Fixed rates: 4.72% – 12.04%
- Rate reduction: 0.25% automatic payment discount
- Fees: None
- Repayment terms: 5, 10, or 15 years
Ascent
Rates (APR)
3.17% – 14.92%
Loan Amounts
$1,000 – $200,000
Cosigner
Required
Ascent offers student loans that can be used by DACA students as long as they add a cosigner who is a U.S. citizen or permanent resident. It’s worth noting that cosigner release is not available for loans where the primary borrower is not a U.S. citizen or permanent resident.
- Variable rates: 3.17% – 13.92%
- Fixed rates: 3.98% – 14.92%
- Rate reduction: 0.25% automatic payment discount
- Fees: None
- Repayment terms: 5, 10, or 15 years
Other Financing Options for DACA Students
Even if you find yourself unable to get a private student loan or state aid, there are still several options. There are personal loans and scholarships in the private sector; some of them are even specifically geared for DACA students.
Personal Loans
While they aren’t private student loans, you can also get a personal loan as a DACA student. Certain lenders, such as Earnest offer personal loans to non-residents; some even have DACA-specific loans.
Dreamers Scholarship
The Dreamers Scholarship, offered by the Immigrant Law Group, provides money to first-year college students who have qualified for DACA, have a GPA of 2.5 or better, and are applying to one of 12 partner schools that include colleges in New York City, Florida, Washington, D.C., Texas, or California. There is also an online partner school.
Golden Door Scholarships & Support
Golden Door offers not only scholarships for undocumented DACA students, but also mentorship throughout college and beyond with internships and professional development help. They’ve given over 200 students money for college, and their student-scholars go on to attend colleges like Wake Forest University, Emory, and more.
TheDream.US Scholarships
TheDream.US is another scholarship available to you as a DACA student. Their National Scholarship Award will cover tuition and fees up to $14,500 for an associate degree and $29,000 for a bachelor’s degree. There are over 75 partner colleges across 15 states that participate in the program.
Bottom Line
It’s true that recipients of the Deferred Action for Childhood Arrivals benefit will have a harder time than a U.S. citizen when it comes to financing their education. It’s not impossible, however; with some effort, you can find the funding you need for the education you want, regardless of your immigration status.
Citizens Bank is our top-rated private lender offering student loans to DACA students.
Rates (APR)
1.54% – 12.04%
Loan Amounts
$1,000 – $150,000
Cosigner
Required
