Student Loans for DACA Recipients

Deferred Action for Childhood Arrivals (DACA) is a program that offers some legal protections and opportunities to undocumented residents who were brought to the U.S. as children.

While DACA recipients can go to college in the U.S., they’re generally ineligible for federal student loans. However, if you’re a DACA student, you have other options for student aid and DACA student loans.

How undocumented students can apply for college

DACA recipients can attend many colleges in the United States. As of August 2020, the following allow undocumented immigrant students to qualify for in-state tuition:

19 states
Washington D.C.
7 university systems

Only Alabama and South Carolina forbid undocumented students from attending public colleges.

Before you start filling out college applications, it’s a good idea to reach out to the schools you’re considering to see if there are any special rules for applying as an undocumented student.

Some schools might treat DACA applicants like any other in-state student, while others will treat them like international students, which could impact your financial aid options.

Is there help for “Dreamers” to attend college? DACA recipients are also known as Dreamers, after the failed Development, Relief, and Education for Alien Minors (DREAM) Act.

There are several nonprofit organizations that work to help Dreamers go to college, which include:

Recent DACA legal updates

January 21, 2021: The Biden administration issued a memorandum directing the Department of Homeland Security to “take all appropriate action to preserve and fortify DACA, consistent with applicable law.” This memorandum was in response to a court ruling in Texas that allowed DHS to terminate an individual’s DACA status without notice.
November 29, 2021: The U.S. Court of Appeals for the Fourth Circuit repealed a 2018 decision by former Attorney General Jeff Sessions that restricted immigration judges’ ability to terminate removal proceedings for DACA recipients.

Learn More: How to Apply for Federal and Private Student Loans

Federal student loans and aid for DACA students

To qualify for federal student loans, you must be a U.S. citizen, legal permanent resident, or a member of a small list of other eligible noncitizen groups. This means federal student loans aren’t an option for DACA recipients. But you might still qualify for other types of student loans.

Be sure to contact your school’s financial aid office to see if there are any programs available to help you pay for school. Although DACA recipients don’t qualify for federal student loans, your school might ask you to fill out the Free Application for Federal Student Aid (FAFSA) to apply for aid from the school or even from the state.Private student loans for DACA students

After you’ve looked into financial aid options from your school and state, private student loans could help to fill any other gaps.

Depending on the lender, you might be able to apply either as a DACA recipient or as an international student.

Keep in mind: Dreamers will typically need to have a cosigner with good credit who is a U.S. citizen or permanent resident.

You might also have to provide special documentation, such as paperwork from ICE.

If you’re looking to take out a private college loan, be sure to shop around and consider as many lenders as possible to find the right loan for your situation.

4.94.9

Credible rating

Fixed (APR)

4.07% - 15.48%

Loan Amounts

$1,000 up to 100% of the school-certified cost of attendance

Min. Credit Score

Does not disclose

Check Rates

on Credible’s website

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Overview

College Ave offers a wide range of in-school loans for nearly every type of degree. There are a number of repayment options, and borrowers can choose a unique eight-year repayment term. Plus, graduate, dental, and medical students receive extended grace periods.

You may get easy funding for multiple years — 90% of undergraduates are approved for additional student loans when they apply with a cosigner. However, it can be difficult to remove a cosigner for your loan later on, as you must complete at least half of your repayment term before becoming eligible. That’s significantly longer than some lenders, which may only require one to two years of payments before releasing a cosigner.

Interest rates

Fixed or variable

Minimum credit score

Does not disclose

Minimum income

Does not disclose

Loan terms

5, 8, 10, or 15 years for most borrowers (law, dental, medical, and other health profession students have up to 20 years)

Loan amounts

$1,000 minimum up to your school’s annual cost of attendance; lifetime limits depend on your degree and credit profile

Cosigner release

After half of the scheduled repayment period has elapsed

Eligibility

Must be a U.S. citizen or permanent resident at an eligible institution. International students with a Social Security number and a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.

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4.84.8

Credible rating

Fixed (APR)

4.09% - 15.66%

Loan Amounts

$2,001* to $400,000

Min. Credit Score

Does not disclose

Check Rates

on Credible’s website

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Overview

Ascent offers several unique borrowing options that you don’t typically see with private lenders. In addition to traditional student loans for undergraduate, graduate, and medical programs, college juniors and seniors may qualify for its Outcomes-Based Loan — which doesn’t require established credit or a cosigner. Instead, Ascent reviews alternate factors such as your school, major, and GPA to determine your eligibility.

Ascent also offers a wide range of loan terms and repayment plans to choose from. You may even qualify for its Progressive Repayment plan, which allows you to start with small payments that gradually increase over time. Borrowers who use a cosigner can release them after as few as 12 payments, though international students don’t qualify for this option.

Interest rates

Fixed or variable

Minimum credit score

Does not disclose

Minimum income

Does not disclose

Loan terms

5, 7, 10, 12, 15, or 20 years

Loan amounts

$2,001 minimum up to your school’s annual cost of attendance; lifetime limits of $200,000 for undergrads and $400,000 for graduates

Cosigner release

12 months

Eligibility

Must be a U.S. citizen or DACA student enrolled at least half time at an eligible institution. International students with a qualified cosigner may also qualify. Applicants who can’t meet financial, credit, or other requirements may qualify with a cosigner.

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4.44.4

Credible rating

Fixed (APR)

4.43% - 14.04%

Loan Amounts

$1,000 to $99,999 annually ($180,000 aggregate limit)

Min. Credit Score

Does not disclose

Check Rates

on Credible’s website

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Overview

Powered by Cognition Financial, Custom Choice offers student loans for undergraduate and graduate students starting at $1,000. You can borrow up to $99,999 per year with a total aggregate limit of $180,000.

If you apply with a cosigner, you may be able to release them from your loan after 36 on-time payments. You can also receive a 0.25 percentage point discount on your interest rate by setting up autopay, as well as a 2% reduction of your principal balance after graduating.

Custom Choice doesn’t charge application, origination, prepayment, or late fees. It also lets you pause payments through forbearance if you qualify for its natural disaster or unemployment protection programs.

Interest rates

Fixed or variable

Minimum credit score

Does not disclose

Minimum income

Does not disclose

Loan terms

7, 10, or 15 years

Loan amounts

$1,000 to $99,999 per year (lifetime limit of $180,000)

Cosigner release

36 months

Eligibility

Must be a U.S. citizen or permanent resident at an eligible institution. You must also meet Custom Choice’s underwriting criteria for income and credit, or apply with a cosigner who does. Eligible noncitizens such as DACA residents can also qualify by applying with a cosigner who’s a U.S. citizen or permanent resident.

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4.34.3

Credible rating

Fixed (APR)

4.50% - 15.49%

Loan Amounts

$1,000 up to 100% of school-certified cost of attendance

Min. Credit Score

Does not disclose

Check Rates

on Credible’s website

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Overview

Sallie Mae offers the Smart Option Student Loan to undergraduate and graduate students. You can borrow up to your school-certified cost of attendance and apply just once annually to get the funds you need for the entire academic year. Plus, it may be easy to get reapproved for your future years of study — undergraduates have a 97% approval rate when they return to Sallie Mae with a cosigner.

Through Sallie Mae, you can find a variety of loans designed for specific needs, including loans for MBA programs, law school, bar study, medical school, medical residency, dental programs, dental residency, and other health profession programs. However, this lender no longer offers a career training loan.

Interest rates

Fixed or variable

Minimum credit score

Does not disclose

Minimum income

Does not disclose

Loan terms

10 to 15 years for Smart Option Student Loan; up to 15 years for law school and bar study loans; up to 20 years for medical school, medical residency, dental school, dental residency, and health professions loans

Loan amounts

$1,000 up to school-certified cost of attendance

Cosigner release

12 months

Eligibility

Must be a U.S. citizen or permanent resident enrolled in an eligible program. Noncitizens may qualify by applying with a cosigner who’s a U.S. citizen or permanent resident.

Read full review

4.64.6

Credible rating

Fixed (APR)

4.56% - 8.34%

Loan Amounts

$1,001 up to 100% of school certified cost of attendance

Min. Credit Score

670

Check Rates

on Credible’s website

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Overview

INvested is an Indiana company that offers affordable student loans exclusively to state residents. Loans are available to Indiana students and parents who can meet income and credit requirements, or who have an eligible cosigner. Borrowers can borrow as little as $1,001 or as much as the school-certified cost of attendance minus other aid.

INvested provides detailed information on eligibility so borrowers can quickly determine whether to apply for a loan — however, there’s no option to prequalify with a soft credit check. Cosigner release is also available after just 12 on-time payments, considerably shorter than many other lenders.

Interest rates

Fixed or variable

Minimum credit score

670

Minimum income

Does not disclose

Loan terms

5, 10, or 15 years

Loan amounts

$1,001 minimum, up to the school certified cost of attendance

Cosigner release

12 months

Eligibility

Loans are available to Indiana residents only. Borrowers must have a FICO score of 670 or higher, a 30% maximum debt-to-income ratio or minimum monthly income of $3,333, continuous employment over two years, and no major collections or defaults in recent years. Borrowers who do not meet income or credit requirements can apply with a cosigner.

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4.84.8

Credible rating

Fixed (APR)

5.35% - 7.95%

Loan Amounts

$1,500 up to school’s certified cost of attendance less aid

Min. Credit Score

670

Check Rates

on Credible’s website

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Overview

Massachusetts Educational Financing Authority (MEFA) is a not-for-profit lender that offers low-cost undergraduate and graduate school loans to students nationwide. While only fixed-rate loans are available, interest costs may be lower than what you see with other private loans.

While you can apply with a cosigner to lock in the best rate possible, removing that cosigner later may be tough. Only one repayment plan allows cosigner release, and you must make four years of consecutive on-time payments and meet other credit and income requirements to qualify.

Interest rates

Fixed

Minimum credit score

670

Minimum income

Does not disclose

Loan terms

10 or 15 years

Loan amounts

$1,500 minimum up to school-certified cost of attendance

Cosigner release

48 months

Eligibility

Must be a U.S. citizen or permanent resident, enrolled at least half time at a degree-granting, nonprofit institution, and must maintain satisfactory academic progress. Must have no history of default on an education loan and no history of bankruptcy or foreclosure in the past 60 months. Applicants who can’t meet the minimum credit and income requirements may apply with a cosigner.

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4.84.8

Credible rating

Fixed (APR)

5.99% - 14.00%

Loan Amounts

$1,000 to $350,000 (depending on degree)

Min. Credit Score

720

Check Rates

on Credible’s website

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Overview

Citizens offers a variety of student loan types, including loans for undergraduates, graduate students, and parents. Perhaps the most unique feature of Citizens student loans is the option for multiyear approval. If you qualify, you can apply once and borrow for future years with a more streamlined process that only involves a soft credit inquiry.

Student borrowers can defer payments while in school and for six months after graduating. You can also score a 0.25 percentage point reduction on your interest rate for setting up autopay, as well as an additional 0.25 percentage point loyalty discount if you or your cosigner already have a qualifying account with Citizens.

Interest rates

Fixed or variable

Minimum credit score

720

Minimum income

Does not disclose

Loan terms

5, 10, or 15 years for student loans; 5 or 10 years for parent loans

Loan amounts

$1,000 minimum, up to a maximum of $150,000 for undergraduate and graduate degrees; $250,000 for MBA and law; and $180,000 or $350,000 for health care student loans, depending on the degree type

Cosigner release

36 months

Eligibility

Must be a U.S. citizen or permanent resident enrolled at least half-time in a degree-granting program at an eligible institution. International students can apply with a cosigner who’s a U.S. citizen or permanent resident.

Read full review

4.84.8

Credible rating

Fixed (APR)

8.42% - 13.01%

Loan Amounts

$1,000 up to cost of attendance

Min. Credit Score

680

Check Rates

on Credible’s website

View Details

Overview

Education Loan Finance (ELFI) is a division of Tennessee-based SouthEast Bank owned by Education Loan Finance, Inc., a non-profit whose mandate is to provide access to higher education. ELFI launched in 2015 and offers undergraduate, graduate, and parent private student loans as well as student loan refinancing.

ELFI student loans and refinance loans are available to residents in all U.S. states including Puerto Rico. Borrowers can benefit from no application, origination, or prepayment fees. ELFI also offers flexible repayment terms and competitive rates, however there’s no cosigner release option and the lender doesn’t offer any discounts.

Interest rates

Fixed or variable

Minimum credit score

680

Minimum income

$35,000

Loan terms

5, 7, 10, or 15 years

Loan amounts

$1,000 - Cost of attendance

Cosigner release

A cosigner may not be taken off a loan, but the borrower can apply for a new loan without their cosigner.

Eligibility

All 50 states as well as Washington DC and Puerto Rico.

Read full review

All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | SoFi Disclosures | Read more about Rates and Terms

Financial aid for Dreamers

College scholarships and grants could be another way to pay for college. Unlike student loans, neither of these have to be paid back — essentially making them “free money” to put toward your education.

Private scholarships for DACA students
State financial assistance for DACA students
Financial assistance from colleges

Private scholarships for DACA students

Many private scholarships are available to any applicant in the United States, including DACA recipients.

There are also scholarship programs designed exclusively for DACA students. These include scholarships from:

TheDream.US
The Hispanic Scholarship Fund
Questbridge
The Ascend Educational Fund (New York City area only)
California Latino Legislative Caucus Foundation (California residents only)
The Jack Kent Cooke Foundation
Golden Door Scholars

State financial assistance for DACA students

In some states, DACA students can participate in state financial aid programs. There are also several states that offer a special DACA financial assistance program.

And if you don’t qualify for financial aid, you might still be able to get in-state tuition.

States that allow DACA recipients to participate in the state financial aid program include:

California
Colorado
Minnesota
New Mexico
Oregon
Texas
Washington

States with financial aid programs specific to DACA students include:

California
Connecticut
Hawaii
Maryland
Minnesota
New Jersey
New Mexico
New York
Oregon
Texas
Washington

These states offer in-state tuition to DACA students:

California
Colorado
Connecticut
Florida
Illinois
Kansas
Maryland
Minnesota
Nebraska
New Jersey
New Mexico
New York
Oregon
Texas
Utah
Virginia
Washington
Washington, D.C.

University systems that offer in-state tuition to DACA students, include:

University of Hawaii Board of Regents
Kentucky Council on Postsecondary Education
University of Maine Board of Trustees
University of Michigan Board of Regents
Ohio Board of Regents
Oklahoma State Regents for Higher Education
Rhode Island’s Board of Governors for Higher Education

Learn More: Student Loan Requirements

Financial assistance from colleges

Many schools offer institutional aid, such as scholarships, grants, or other programs. Some are also able to waive your application fees, depending on your financial circumstances. Be sure to contact your school’s financial aid office to see what resources might be available for you.

If you decide to take out a private student loan, be sure to compare your rates from as many lenders as possible to find the right loan for your needs. You can do this easily with Credible — after filling out a two-minute form, you can see your rates from multiple lenders.

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