Content provided by Credible. Credible is solely responsible for this content and the services it provides. New York Post receives a fee if you click a link below and close a loan through Credible. WHY TRUST CREDIBLE: Our goal is to give you the tools and confidence you need to improve your finances. We do that by creating expert-curated and deeply-researched articles that adhere to our editorial guidelines. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS #1681276, is referred to here as "Credible."

If you’re part of the Deferred Action for Childhood Arrivals (DACA) program, you may be researching ways to attend college in the United States and help you pay the cost of your education. 

Unfortunately, the U.S. Department of Education does not make federal loans available to undocumented individuals — including to DACA recipients. However, some options for DACA student loans are still available through private lenders, as well as financial aid programs offered by states or educational institutions. 

What to know about DACA student loans

Deferred Action for Childhood Arrivals (DACA) is a type of administration relief that allows people who were brought to the United States as children to avoid the risk of deportation. DACA recipients are also eligible to get a work permit and a Social Security number. 

Unfortunately, while DACA makes it easier for undocumented individuals to establish lives in the U.S. free from the fear of deportation, it does not confer equal rights. And, since DACA recipients are still not legal U.S. citizens, they’re not eligible for federal student loans. 

Good to know: There is no federal law that prevents you from applying to any college in the United States. However, a few states may restrict or prohibit undocumented students from going to college, according to the Higher Ed Immigration Portal. Make sure to research your college’s policies and see if there are any special considerations for DACA students.

Federal student loans for DACA Recipients

All federal student loans, including Direct Subsidized and Unsubsidized Loans as well as Perkins Loans, require U.S. citizenship, unless you are an eligible non-citizen. DACA recipients do not generally count as eligible non-citizens.

Because DACA recipients are not eligible for federal loans, they’re unable to benefit from the perks federal loans provide, such as flexible payoff plans and student loan forgiveness. 

Even though you can’t qualify for federal student loans, you may still want to complete the Free Application for Federal Student Aid (FAFSA). The Department of Education recommends asking a college counselor or financial aid office to find out if you should use the FAFSA to help you apply for state or institutional aid. 

Tip: If your parents don’t have a Social Security number, enter in all zeroes (000-00-0000) on the form to avoid a reject code. Your parents will then need to print out and sign the FAFSA, mailing it to:

Federal Student Aid Programs
P.O. Box 7652
London, KY 40742-7652

The good news is, federal student loans are not the only student loan options out there.

Other ways DACA students can get help paying for college

Since federal aid is not available, eligible recipients of DACA will need to look for other sources of funds to finance their education. These could include:

  • State financial aid: California, Colorado, Illinois, Maryland, Minnesota, Nevada, New Jersey, New Mexico, New York, Oklahoma, Oregon, Texas, Virginia, Washington, and the District of Columbia are a few examples of states that offer DACA financial aid. You can find other examples at the Higher Ed Immigration Portal.
  • Institutional financial aid from colleges and universities: This could potentially include aid from public universities in California, Connecticut, Hawaii, Minnesota, and Utah. 
  • Private student loans: Some lenders, such as Ascent and Citizens, provide options to DACA recipients.
  • Grants and scholarships: Available from academic institutions, states, or public or private organizations and they don’t need to be repaid. Some examples include The Hispanic Scholarship Fund, QuestBridge, The Ascend Education Fund (for the New York City area), California Latino Legislative Caucus Foundation (California only), The Jack Kent Cooke Foundation, and Golden Door Scholars.
  • Other helpful resources: TheDream.US can help you find national scholarships and opportunity scholarships aimed at undocumented individuals pursuing a college education. Immigrants Rising and The Dream Project (for Virginia residents) can also help you go to college. 

Private student loans for DACA Recipients

Many private student loan lenders make loans available to DACA recipients. This includes the following lenders:

  • Ascent, which offers undergraduate student loans with rates as low as 5.86% for variable rate loans and 4.62% for fixed rate loans with a cosigner as of March 2023.
  • Citizens, which offers fixed rate loans with rates starting as low as 5.10% or variable rate loans with rates from 4.99% as of March 2023. 
  • MPower, which offers undergraduate student loans with rates starting at 9.99%. These rates can be reduced to 8.49% with interest rate discounts for autopay signup, 6 months of autopay, and proof of graduation and full-time employment. 

Because there are differences between private lenders in terms of rates, repayment options, and eligibility criteria, it’s a good idea to shop around. Get quotes from several different lenders online to see what options are out there. 

Tip: Be sure to focus on both interest rates and borrowing limits when looking for lenders. Most will allow you to borrow up to 100% of the cost of attendance and other school-related expenses but there may be different maximum lending limits. 

You may also want to apply with a cosigner if you are a DACA recipient, as some lenders require this when providing loans to undocumented individuals. Others don’t require it but charge much lower rates for cosigned loans. 

Why do I need a cosigner?

Some private student loan lenders require a cosigner for undocumented students. Others do not require a cosigner in all cases, but may charge lower rates in situations where there is a cosigner.

A cosigner is a credit-worthy U.S. citizen who can provide proof of sufficient income. The cosigner agrees to accept shared responsibility for the loan. Because lenders view loans with cosigners as less of a credit risk, they typically will be more open to approving cosigned loans and offering reduced rates. If the primary borrower does not make payments, the lender can collect from the cosigner. 

It can sometimes be difficult to find a cosigner, especially for DACA recipients whose parents may not be U.S. citizens. But other family members, friends, and mentors could be a possible resource. If you’re looking for a cosigner, consider your entire network and be prepared to reach out with an explanation of why you need help getting loans and what your plans are for paying them back in full. 

ncG1vNJzZmimqaW8tMCNnKamZ6OpwqWxza1kpaeRo8BwrsSsq2ackZiubr%2FTrpuepqRiubCtzWg%3D