DACA Student Loans: How Dreamers Can Pay for College

As of June 2025, approximately 510,000 undocumented students were enrolled in U.S. colleges and universities, according to the Higher Ed Immigration Portal. This includes approximately 144,150 DACA or DACA-eligible students.

None of these students can access federal student loans because undocumented students, including DACA recipients, aren't eligible for federal student aid. State-based DACA student loans and private student loans for Dreamers offer an alternative option to cover college costs.

Read on to learn about the different types of financial aid for DACA students, and learn how to get a loan as a DACA student.

Current private student loan rates

Can DACA students get federal student loans?

Dreamers don’t qualify for federal student aid, including federal Direct Loans, because they don’t meet the Department of Education’s basic student loan eligibility criteria. Federal student aid recipients must be U.S. citizens or eligible noncitizens.

Eligible noncitizens include U.S. nationals, permanent residents, and students who have certain designations on an Arrival-Departure Record, including refugees or Cuban-Haitian entrants. DACA recipients don’t fall under the “eligible noncitizen” classification.

Can DACA Students Complete the FAFSA?

Although DACA students are ineligible for federal student loans, they could still benefit from completing the Free Application for Federal Student Aid (FAFSA), as filing a FAFSA is often a requirement for need-based private scholarships and grants.  However, it's unclear whether DACA recipients can, or will, complete this application. 

The FAFSA application process was streamlined starting in the 2024-2025 school year. The new, simplified form significantly reduced the number of questions asked and made other changes, including making it easier for applicants’ tax data to transfer directly from the IRS.  

“Previously, undocumented and international students could file the FAFSA by answering the citizenship question appropriately,” explains Mark Kantrowitz, a nationally recognized expert on student financial aid. “That capability appears to have been lost due to FAFSA simplification.”

According to Kantrowitz, "there have been requests to restore it, but state grant systems never asked DACA students to file the FAFSA. They always had their own application forms, such as CADAA in California.”

Even if the ability to complete the FAFSA is restored, some DACA students and their families are worried about submitting their information to the federal government amid the U.S. Immigration and Customs Enforcement (ICE) agency’s intensifying enforcement efforts. 

"Many students who are citizens with an undocumented parent are now afraid to fill out [the] FAFSA, although supposedly the Ed Department is not supposed to share information with ICE,” explains Nancy Goodman, founder and executive director of College Money Matters, a nonprofit higher education resource. 

According to the Higher Ed Immigration Portal, the Department of Education and Department of Homeland Security (DHS) don’t currently have a standing agreement to share FAFSA information for immigration enforcement. However, the Department of Education may send FAFSA data to other federal agencies, including DHS, for eligibility verification purposes. 

What private student loans are available for DACA Recipients?

DACA student loans are available through some private lenders. Ascent, College Ave, Earnest, and Sallie Mae are just a few lenders that offer private student loans for Dreamers. You can also check with your school’s financial aid office to see if it offers institutional loans for DACA students that could help you pay for college.

Private student loans for Dreamers may come with fixed or variable rates, and many lenders let you check your rate online before submitting an application.

You’ll need to meet the lender’s eligibility requirements when applying for DACA student loans, and each lender has its own criteria. For example, you might be required to add a cosigner who’s a U.S. citizen or a permanent resident to your DACA college loan application.

By agreeing to cosign the loan, your cosigner becomes obligated to cover your payments if you don’t repay the debt. Additionally, any past-due or missed payments can negatively affect your credit score, and if you default on the loan, debt collectors may try to collect from your cosigner.

What other financial aid options exist for DACA students?

Aside from private DACA student loans, Dreamers can explore other sources of financial aid, including scholarships, grants, and state-funded programs for DACA recipients. These types of aid are considered gifts that generally don’t need to be repaid. 

You can find these opportunities through private organizations, your institution, or your state. TheDream.US, for example, helps undocumented students access higher education by offering two scholarship programs. DACA students who live in a state that offers limited aid for Dreamers, and who meet other requirements, can apply. 

Some state programs, like California’s Dreamer Cal Grant, offer additional paths to financial assistance for DACA recipients. 

How To Apply for Private Student Loans as a DACA Student

1. Exhaust gift-based aid: Before venturing into DACA college loans, secure as many scholarships and grants as possible. This strategy helps reduce how much student debt you’ll need to repay.  
2. Shop around: Always compare at least three DACA student loan lenders to ensure you’re getting the most competitive rate and best borrower benefits. Read through each lender’s eligibility requirements and repayment options to find a lender that’s a good fit. 
3. Gather your documents: This might include your photo ID, proof of enrollment, your school-certified cost of attendance, a Social Security number if you were issued one, proof of DACA work authorization, income details, and supporting documents for your cosigner. Each lender has its own list of required supporting documentation, so double-check in advance.
4. Submit your application: Once you’ve decided on a lender to move forward with and prepared your documents, you’ll need to fill out a formal DACA student loan application. After applying for a student loan, keep an eye on your email inbox or account dashboard on the lender’s site for any additional requests or next steps.

How DACA Students Can Improve Their Loan Approval Chances

Lenders evaluate multiple factors to determine whether to approve your loan application. Consider these tips to strengthen your chances at securing a loan: 

• Build your credit: If you anticipate needing student loans in future academic years, getting an early start on building your credit can go a long way. Using financial tools such as a secured credit card or credit builder loan can help you demonstrate responsible repayment habits and improve your credit profile. 
• Find a qualified cosigner: Even if your lender doesn’t require a cosigner for your DACA student loan, securing a creditworthy cosigner who checks all of the lender’s eligibility boxes can help you maximize your approval odds. A cosigner with excellent credit might also help you access a lower interest rate, especially if you have bad credit or no credit score at all.
• Compare multiple lenders: It’s worth repeating that gathering multiple private student loan offers is crucial. Some lenders have specialized programs for international or DACA students and are designed to address the needs and circumstances of Dreamers.