Fewer U.S. citizens in mixed-status families are applying for financial aid, state agency warns

The rate of high school seniors completing the Free Application for Federal Student Aid has hit an all-time high with the class of 2026, according to data from the National College Attainment Network.

But among U.S. citizens in mixed-status families — those where at least one parent is an undocumented immigrant — FAFSA completion in California has dropped. So has their completion of the California Dream Act Application, which provides access to state-based financial aid.

That difference is even more pronounced because California is otherwise a leader in how many students complete FAFSA, which gives them access to federal student loans, work study programs and grants.

According to the California Student Aid Commission, FAFSA completion among first-time applicants from mixed-status families dropped by over 3,000 students this past year. CADAA completion by students in mixed-status families fell by 910.

“That is not a small fluctuation,” said Nicole Kangas, a CSAC spokesperson, at a recent media roundtable. “That is a sharp and significant withdrawal from financial aid and higher education systems. Each one of these numbers represents a student who is a U.S. citizen and is eligible for federal aid, as well as state aid. And we should be concerned by any signs of application declines among this vulnerable group.”

How does financial aid work?

The U.S. Department of Education uses FAFSA data to provide federal financial aid. Colleges also use this information to calculate how much students will pay to go to their campus. Schools then make offers to prospective students, which can be composed of grants, loans, scholarships and work-study. For many students, these packages determine where—and even if—students will go to college.

Traditionally, undocumented students, DACA recipients, U Visa holders and students with Temporary Protected Status have completed the California Dream Act Application to access state-based financial aid. In 2024, the California Student Aid Commission began encouraging U.S. citizens in mixed-status families to consider CADAA as an option after learning that these students were encountering glitches and delays when trying to complete FAFSA.

CADAA completion among undocumented students and students with temporary immigration relief picked up a bit last year. But, generally, completion rates for this group are on a downward trend, which immigrant advocates tie to the wind-down of DACA in 2017, during President Trump's first term.

“ California has spent years telling students that college is the pathway to opportunity. But for many immigrant students and [U.S. citizens in] mixed-status families, that message now collides with another reality: fear,” Kangas said. “Fear that applying for aid could expose a loved one to harm, and fear that the systems designed to support them may not be able to protect them. That fear is reshaping college-going behavior in California in real time, and if we do not respond with urgency, we risk losing an entire generation of students.”

What’s driving the decline?

“What we're hearing consistently is that students aren't opting out because they don't value college,” said Justin Hurst, government relations and advocacy manager at CSAC. “They're opting out because they're worried that applying could expose them or a loved one to immigration enforcement, or that their information could then be accessed or misused.”

For students who fear completing the FAFSA for the first time, CSAC has instructed counselors across the state to underscore that state-based aid through CADAA is still an option — and that the latter includes legal protections to safeguard student data under the Family Educational Rights and Privacy Act, SB 54 and AB 21.

“Even when strong privacy protections do exist, confusion will often spread faster than any reassurance that can be provided, especially through social media, peer networks, rumors. So not applying often feels like the safest choice,” Hurst said.

Marcos Montes, policy director at SoCal CAN, a coalition made up of over 120 educational nonprofits, provided an example: Recently, he heard about a U.S. citizen who was inaccurately advised that if she submitted the CADAA, she would be considered for federal aid. The student, he added, was later confused about why her financial aid package didn’t include a federal Pell Grant, which provides up to $7,395 a year for low-income families.

What about demographic changes?

Montes also noted that some college access advocates have wondered if CADAA completion declines among undocumented students are due to California’s population plateau. “But the best estimates available demonstrate that, every year, about 10,000 undocumented students graduate from California's high schools,” he said. Last year, 4,570 undocumented students completed the application, down from 8,833 in 2019.

“ The fact that we are also living in a post-DACA environment complicates things,” Montes added. “All of the students graduating from high school today are not eligible for DACA, and many wonder if pursuing higher education is even worth it if they would have very limited work opportunities during and after college.”

DACA, or the Deferred Action For Childhood Arrivals program, grants work permits for undocumented people who were brought to the U.S. as children. It’s also meant to provide temporary deportation relief. But, under the second Trump administration, at least 270 DACA recipients have been arrested — including one Californian who was detained and deported within 24 hours.

What might change?

The role of advocates, Montes said, is to “empower students and families to make the best choice for them.” If students have older siblings who are in college, or if they’re renewing their financial aid applications, the federal government likely already has their family’s information, he said — this is also true for undocumented parents who pay federal taxes.

For some, completing a FAFSA might make the most sense. But “for a student who's just really afraid” of how the federal government might use their data, he said sticking to the state-based CADAA might be the best fit.

State senator Sasha Renée Pérez has introduced a bill to formally establish CADAA as an alternative to FAFSA.

According CSAC's Hurst, the bill is “ currently parked in appropriations." And “in the absence of any information on it being able to advance in its current form,” he added, the commission is advocating to have similar language included in a trailer bill to be passed as part of the state's budgeting process.