Financial Aid is Now Available to Immigrant Students

Updated: Apr 19, 2024 | Tags: Financial Aid Help for Immigrant Students

Higher education offers a path to opportunity for immigrant students in the United States. It can lead to greater career prospects, economic stability, and personal growth. However, financial barriers often posed significant challenges, limiting access for many deserving students. 

Now, a policy change by the U.S. Department of Education expands the potential for immigrant students to access financial aid. This opens doors for those who may have previously considered college out of reach. 

The update focuses on how parents of non-citizens might provide identifying information for the Free Application for Federal Student Aid (FAFSA), a critical step in securing financial support.

By understanding this change, immigrant families can explore new possibilities and navigate the path toward a brighter educational future.

What is the policy change?

The FAFSA

The Free Application for Federal Student Aid (FAFSA) is the gateway to federal financial assistance for college or career school. It determines eligibility for a range of programs including grants (which do not need repayment), loans, and work-study opportunities.

Completing the FAFSA is a critical step in the financial aid process.

The FAFSA is submitted online and is entirely free to complete.  Information collected includes details on the student's and family's income and assets.

This information is analyzed to determine the student's Expected Family Contribution (EFC), which is the amount colleges expect a family to contribute towards educational costs.  

Financial aid packages are calculated based on factors such as the cost of attendance at your chosen college and your demonstrated financial need.

Prior Restrictions

In the past, both students and their parents were required to provide a Social Security Number (SSN) to complete the FAFSA. As many immigrant parents lack an SSN,  this posed a significant obstacle, preventing their children from accessing federal aid even if otherwise eligible. 

The SSN requirement acted as a barrier, potentially discouraging immigrant families from applying for aid altogether. This restriction had the unintended consequence of limiting educational opportunities and financial support for a significant portion of the student population.  

Students with eligible immigration statuses often faced significant financial hurdles in pursuing higher education due to this requirement.

The Change

The U.S. Department of Education has recognized this barrier and implemented a key update. Parents can now provide alternative forms of identification, such as an Individual Taxpayer Identification Number (ITIN), if they don't possess an SSN. 

This change ensures eligible immigrant families can fully participate in the financial aid process.  ITINs are issued by the Internal Revenue Service (IRS) to individuals who are required to have a taxpayer identification number but are not eligible for a Social Security Number. 

Having the option to use an ITIN on the FAFSA is incredibly significant as it removes a major hurdle for many immigrant students in their pursuit of higher education.

Important Note: While the change opens doors for many, it's crucial to remember that federal student aid eligibility is still linked to specific immigration statuses.

Students in eligible non-citizen categories can benefit from this policy update. It's essential to consult official resources, like the Federal Student Aid website, to confirm eligibility based on individual circumstances.

Who is eligible?

This policy change has the potential to benefit a wide range of immigrant students.  Eligible non-citizen categories include:

  • Lawful Permanent Residents ("green card" holders): Individuals who have been granted the right to live and work permanently in the United States.  This status grants them many of the same rights as U.S. citizens, including the ability to sponsor certain family members for immigration.

    For those pursuing higher education, lawful permanent residency enables them to qualify for federal student aid under this new policy change.

  • Refugees and asylees: People who have been forced to leave their homes to escape discrimination or violence related to their race, religion, nationality, political views, or social background.

    They have been granted protected status in the United States, allowing them to remain and potentially seek a path to permanent residency.

  • Individuals with specific humanitarian statuses: This includes categories such as Cuban-Haitian Entrant, certain victims of human trafficking (T nonimmigrant status), and victims of severe forms of abuse (U nonimmigrant status). 

    The U.S. government provides these special visa categories to individuals who have endured extreme hardship or dangerous situations.  Offering financial aid access aligns with the intent of these humanitarian programs.

  • Holders of other eligible nonimmigrant visas: The Department of Education provides a detailed list of eligible visa categories on their website.

    It's essential to consult this list, as it includes a range of specific visa types beyond those mentioned above, ensuring you have the most accurate information about your own eligibility.

Important Note: It's crucial to emphasize that the policy change does NOT extend eligibility to recipients of Deferred Action for Childhood Arrivals (DACA). DACA recipients remain ineligible for federal student aid unless further policy changes occur.

Eligibility Verification: It's essential to remember that specific eligibility criteria still apply. The Department of Education, through the FAFSA process, verifies immigration statuses to ensure that only eligible individuals receive federal assistance. Resources on federal student aid websites can help determine individual eligibility.

Impact for immigrant students

Reduced Costs

Federal aid can substantially lower college costs, making education attainable for many eligible immigrant students. Grants, unlike loans, do not need to be repaid, significantly reducing out-of-pocket expenses. 

Federal loans often have lower interest rates and more favorable repayment terms than private loans. Additionally, access to work-study programs provides an opportunity to earn income while attending school, further easing financial burdens. 

The combination of these aid types can transform the financial landscape for immigrant students, opening doors to educational opportunities that might otherwise be out of reach due to cost.

Increased Enrollment

Financial barriers contribute to lower college enrollment among immigrant communities.  The high cost of education can be a significant obstacle, particularly for families who may already have limited resources.

By making federal financial aid accessible to eligible immigrant students, this policy change has the potential to increase college attendance significantly. 

Aid can make college more affordable, opening up new possibilities for students who might otherwise have felt higher education was out of reach.  This could lead to greater representation of immigrant communities within colleges and universities across America.

How to apply

Understanding the application process is key to accessing financial aid. Here's a breakdown of the steps involved:

The FAFSA Process: The journey begins with completing the Free Application for Federal Student Aid (FAFSA) online at https://studentaid.gov/. The updated form now provides options for parents lacking a Social Security Number to use alternative forms of identification, such as an Individual Taxpayer Identification Number (ITIN). 

Importantly, the FAFSA is free to complete, and students should be wary of any websites or services charging fees to assist with the application.

FSA ID:  Both students and parents may need to create an FSA ID. This acts as a secure electronic signature for the FAFSA and other federal student aid processes, allowing you to sign documents electronically. 

Information on obtaining an FSA ID is readily available on the Federal Student Aid website, making the process simple and convenient.

Up-to-date Information:  Eligibility requirements and application procedures can change. It's vital to refer to official government websites (.gov) for the most accurate and current instructions.

Staying informed ensures you don't miss important updates or deadlines that could affect your eligibility for financial aid.

Additional aid options

It's important to remember that federal aid isn't the only path to financial support for immigrant students. Here are other key avenues to explore:

  • State Aid:  Many states have their own financial aid programs designed to help residents attend college.  Eligibility criteria might differ from federal aid requirements, potentially opening doors to students who don't qualify for federal assistance. 

    Searching your state's higher education website is a good starting point for discovering available state-based aid.

  • Institutional Scholarships: Colleges and universities often offer a wide variety of scholarships for students. These can be based on academic merit, financial need, specific backgrounds or interests, or a combination of factors.  Investigate the scholarship opportunities offered by the schools you are interested in attending.

  • Private Scholarships:  Countless organizations, foundations, and businesses offer scholarships specifically aimed at supporting immigrant students or those facing financial hardship. 

    Online scholarship search tools can help you find relevant opportunities.  Be sure to thoroughly research application requirements and deadlines.

Importantly, even students ineligible for federal aid shouldn't be discouraged.  By diligently exploring a combination of state aid, institutional scholarships, and private scholarships, you may be able to significantly reduce the cost of your education.

Conclusion

This policy update marks a significant step toward increasing educational equity for immigrant students in the U.S. By expanding access to financial aid, more students can pursue their dreams of higher education without financial barriers standing in their way. 

It's essential to invest time in thorough research into eligibility requirements and application procedures to maximize the benefits of these programs.

College financial aid offices can offer personalized guidance and support to immigrant students and their families, ensuring a smooth and successful financial aid process.

Additional Resources