College students face dilemma: Applying for financial aid could expose undocumented parents

Across California, counselors and other educators are helping students complete their financial aid applications — this after last year’s chaotic relaunch of the Free Application for Federal Student Aid (FAFSA), which was ridden with so many glitches that it became hard or impossible for some students to apply.

Now, with a second Trump administration on the horizon, financial aid experts worry that some of these students — those who have at least one parent who is an undocumented immigrant — might face additional hurdles securing money for college.

During his 2024 campaign, the president-elect pledged to “carry out the largest deportation operation in [U.S.] history.” And, in California, more than 12% of high school students have at least one parent who is undocumented.

At a statewide webinar for financial aid practitioners this week, participants shared that some of the families they serve have expressed fear about how their personal data might be used by the incoming administration.

The crux: If students submit a FAFSA, they will share their parents' information with the U.S. government, creating a risk of deportation. But if they don’t, they’ll forgo federal financial aid.

What happened in the first Trump presidency?

In 2017, the first Trump administration rescinded the Deferred Action For Childhood Arrivals (DACA) program, which grants work permits and temporary deportation relief for undocumented people who were brought to the U.S. as children.

Jake Brymner, deputy director for policy and public affairs at the California Student Aid Commission, said in the webinar that the decision had consequences: The commission saw a correlating decline in the number of California Dream Act Applications (CADAA). That program provides access to state-based financial aid for undocumented students, as well as U visa holders and students with temporary protected status.

Like practitioners in California, the National College Attainment Network has also gotten questions about privacy protections for FAFSA contributors without Social Security numbers. Last week, the nonprofit issued guidance for mixed-status families, saying that although the Higher Education Act “prohibits the use of data for any purpose other than determining and awarding federal financial assistance,” it “cannot assure” families “that data submitted to [the U.S.] Department of Education . . . will continue to be protected.”

U.S. citizens who are part of mixed-status families “should make a considered decision about whether to submit identifying information to the federal government,” the nonprofit advised. These students are “fully entitled to federal student aid,” the nonprofit added. “It is dreadful that students and families have been put in a position of potentially choosing between their safety and the pursuit of postsecondary education.”

To ensure that U.S. citizens in mixed-status families who forgo the FAFSA still have access to some financial aid, the California Student Aid Commission is making CADAA available to them — a practice that began last year when this same group of students encountered issues with the new FAFSA.

What are the potential ramifications of forgoing the FAFSA?

Forgoing the FAFSA means students who are U.S. citizens will lose access to federal financial aid. This includes federal work-study programs, loans, and the Pell Grant, which helps low-income undergraduates pay for college.

Plus, if students solely complete the CADAA, the funds they receive cannot be used to pay for college anywhere outside of California.

At the webinar, some facilitators suggested encouraging families to complete the CADAA first and then, once they’ve done their research and weighed the potential risks, they can go back and complete the FAFSA.

How will financial aid practitioners handle this issue?

The California Student Aid Commission stresses the importance of telling students in mixed-status families that they have options, and that they do not have to rely on FAFSA alone.

“Our role is to allow families to make an educated decision,” said Catalina Cifuentes, who serves as chair of the commission.

“We're not forcing anyone to submit an application, that is never your role when you're supporting a student and family,” she told practitioners. “Let [parents] exercise the custody and control of their children. Let them exercise their choice to submit or not submit.”

What are some of the unknowns?

Cifuentes also recommended counselors and other educators avoid making blanket statements about applying for FAFSA. Instead, she encouraged them to advise each student on a case-by-case basis.

Some families may be working with attorneys to get legal residency for students’ parents, Cifuentes noted. Plus, if students have older siblings who are in college, or if they’re renewing their financial aid applications, the federal government already has their family’s information. This is also true for parents who pay federal taxes, despite being undocumented.

“There's not going to be one way of doing this,” Cifuentes said.

Where can students in mixed-status families get help?

The California Student Aid Commission is hosting free workshops to help students apply for financial aid, staffed by experts. This includes:

• online webinars 
• in-person workshops

California college students can also access free immigration legal assistance:

• legal support for California community college students 
• legal support for CSU students
• legal support for UC students  

Additional free legal services are also available:

• California Department of Social Services (CDSS) 
• National Immigration Legal Services Directory 
• Immigrants Rising