The simple guide to student loans for DACA students | Earnest

The simple guide to student loans for DACA students

By Authors at Earnest | Published on July 13, 2026

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TL;DR

While you won’t be eligible for federal student loans as a DACA student, there are a variety of other funding options available.
Prioritize state and school-based financial aid programs as well as grants and scholarships.
If you still need money for school, a private student loan can help you fill in the gap.
While many private lenders require a U.S. cosigner for DACA borrowers, others like Earnest are more flexible and let you apply with a cosigner or without one.

Table of Contents

If you’re a Deferred Action for Childhood Arrivals (DACA) recipient trying to figure out how to pay for college, you may have already run into a major roadblock: you’re not eligible for federal financial aid. The good news is that there’s a growing number of resources to help undocumented students find the financial support they need.

These days, lenders are starting to recognize that DACA students make up a significant percentage of the American student body. As a result, many of them offer student loans for DACA students.

Before exploring DACA student loan options, it helps to understand the program’s current status. As of June 2026, U.S. Citizenship and Immigration Services (USCIS) continues to process renewal requests for existing recipients. However, due to federal court orders, new initial applications are not being approved.

While the future of DACA remains uncertain, you may still be able to apply for private student loans and refinance existing student loans as a current DACA recipient. Just make sure you check USCIS.gov to get the latest updates and confirm your eligibility.

Once you’re ready to move forward, there are a few steps you can take to help cover any remaining college costs.

Already have loans and looking to refinance? See our guide to refinancing student loans as a DACA recipient .

Exhaust your non-loan options

Right now, 55% of public and 57% of private U.S. students at four year universities have to take out loans to afford higher education. While common, student loans have some downsides. If you borrow a large amount, you could be in debt for decades. And the longer you have a student loan, the more you’ll pay in interest. So, the first step to taking out student loans is making sure that you take out as little as possible. Exhaust these non-loan options first:

State and school financial aid options for DACA students

Many public colleges offer in-state tuition to students with DACA status—which is often at a fraction of the cost of non-resident tuition. Check the Higher Ed Immigration Portal for the latest list of states that offer in-state tuition to DACA recipients.

Some states also offer financial aid options specifically for undocumented immigrants. Our DACA financial aid resource can give you an idea of what’s available in your state.

Plus, many schools, particularly private colleges, have special funds available to help DACA recipients cover their tuition. Call your school’s financial aid office to see what’s available.

Scholarships and grants that don't require citizenship

Many nonprofits, companies, and other organizations offer scholarships and grants. Unlike student loans, these funds never have to be repaid. Most grants are given out based on financial need, while many scholarships are awarded based on merit. You’ll have to fill out applications to win them, and some can be competitive. The good news is that many scholarships cater specifically to first-generation college students and immigrants. Some may even cover your full cost of attendance.

Federal aid & DACA: what you need to know

Although DACA students are eligible for many state grants and scholarships, they are no longer eligible for federal financial aid. Federal financial aid is now limited to U.S. citizens and permanent residents.

Private student loans for DACA recipients: what to look for

Even though DACA students aren’t eligible for federal financial aid, they are eligible for private student loans. A private student loan is a type of loan that is offered by private lenders, such as banks, credit unions, and online lenders, to help students pay for college or graduate school. Private student loans are different from federal student loans in a few key ways:

Federal loans from the US government are always fixed-rate. Private student loans can have fixed interest rates or variable interest rates.
Federal loans have options for forgiveness and income-driven repayment, whereas private loans do not.
With the exception of Parent PLUS and Grad PLUS loans, federal loans do not require a credit check while private loans do.
Federal loans offer the same interest rates to everyone, whereas private loans offer rates based on credit score, income, debt, and other factors.

Generally, private student loans are less forgiving than other types of student aid, which is why they should be your last stop for college funding. You should exhaust all options (state aid, scholarships, private grants, etc.) before borrowing from a private lender.

There are private student lenders who offer student loans for DACA recipients, but the vast majority require the borrower to have a cosigner who is a U.S. citizen. When so many DACA students don’t have access to a US cosigner, it can put another obstacle in the way of students who already have very few options for funding their education.

How to get a private student loan as a DACA recipient

1. Secure a cosigner or try a no-cosigner loan

A cosigner is a responsible adult that signs the loan alongside you, the primary borrower, and promises to pay the loan amount if you fail to do so. This gives the lender extra assurance that they’ll get their money back. It can also give them the confidence to offer you lower interest rates and better loan terms.

Many private lenders require a U.S.-based cosigner. With Earnest, there is no cosigner required. If you don’t have a cosigner available, you’ll be able to compare loan options and pursue financing. However, cosigned Earnest Private Student Loans tend to have lower interest rates and students with cosigners are 5X more likely to be approved.

Learn more about our cosigned and non-cosigned private student loans for DACA recipients.

2. Get prequalified

To find the best rate on a student loan, you have to shop around. But each time you submit an application for a student loan, your credit score will lower by a few points. This is called a hard inquiry, and the more hard inquiries you incur, the lower your credit score will go, and the harder it will be to open new lines of credit.

This is where eligibility check comes in. Many student lenders allow you to check your eligibility in just a few minutes with no impact to your credit score. You’ll submit a few details about yourself, and the prequalification tool will give you a good idea of whether you’ll be approved, how much you’ll be approved for, and what your interest rate could look like.

You can check your eligibility as many times as you want with no impact to your credit score. Just be sure that the tool you’re using is an eligibility check and not an online application.

3. Pick a lender

Once you have several loan offers, it’s time to make your final selection. A low rate is important, but it’s not the only factor. Some lenders offer GPA or auto pay discounts, fee-free loans, and financial hardship protections. These perks can dramatically reduce stress during your repayment journey.

Earnest offers many of these features, including zero fees1, an auto pay discount2, a Loyalty Discount3, and flexible repayment options4. In addition, Earnest offers deferment depending on loan type and forbearance may be available at lender discretion. Earnest is also known for its fast and empathetic customer support, which means you’ll always have someone in your corner as you navigate the lending process.

4. Apply

When you choose a lender, you’ll have to submit a formal application. This will require your Social Security number or another proof of identity. You’ll also need your cosigner’s information if you have one. With Earnest, this online application takes under 15 minutes.

Once you’ve applied, the lender will check your credit. Generally, you’ll receive your final loan offer within several days. You can then choose to accept or reject the offer.

5. Cover college costs

Once you accept a student loan offer, the lender will generally send the funds straight to your school. Earnest is one of many lenders that disburse loan funds this way.

Once your school takes what it needs for your tuition and fees, it will deliver any excess directly to you. This money can be used for eligible education expenses like room, board, and school supplies.

6. Begin repayment

Some private lenders require you to make payments while you’re in school. These payments are generally small and only cover the interest that accumulates during your college years. This varies by lender. When you take out your loan, be sure to double-check your loan servicer’s policy.

Earnest never requires borrowers to make payments while they’re enrolled in school. However, it can be smart to do so anyway. Making small, regular payments can keep your interest from building up over time. That will make it much more manageable to start your actual loan repayment later.

Once you graduate or drop below half time enrollment, you’ll enter a grace period. Some lenders offer a six-month grace period, while Earnest offers nine months5. During this time, you aren’t required to make full principal & interest loan payments (unless you selected the principal & interest repayment plan). When the grace period is done, you’ll start getting a monthly bill for the full payment.

If you don’t pay off accumulated interest by the end of the grace period, that interest will capitalize, or get added to your loan balance. If you’re able to make even small payments early on, you can save yourself money over the life of the loan.

7. Refinance if it's right for you

It might be worth refinancing if your credit or income has improved and you think you could lock in a lower interest rate and potentially save hundreds to thousands of dollars over the life of your loan6.

For example, let’s say you have ten years remaining on a $50,000 loan balance. When you took out that loan, the best interest rate you could get was an 8% fixed rate. Your monthly payment right now is $607 per month. Now let’s say you refinance that loan amount for the same term, but you secure a 6% fixed interest rate. Not only will your monthly payment go down to about $555 per month, but you’ll save more than $6,000 in interest over the life of your loan*.

* Refinance example listed above is for illustrative purposes only and may not be representative of rates or terms offered by Earnest. Savings are not guaranteed and may vary.

But saving money on interest isn’t the only benefit of refinancing. Here are a few others:

You can switch your loan from a variable rate to a fixed rate.
You can release a cosigner.
You can lengthen your repayment period so your monthly payments will be lower (keep in mind, this will likely end up costing you more in interest over the life of the loan).
You can shorten your repayment period to pay off your debt faster and potentially save money on interest (though your monthly payments will be higher).
You can refinance with a new company if you don’t like your old lender.

Refinancing is typically done once you’ve graduated college and are in a better financial situation. That way, you’re likely to be approved for a lower interest rate. That said, it can be done almost any time for any of the reasons above, and you can always refinance with a cosigner if your financial situation has yet to improve significantly.

How Earnest works for DACA borrowers

If you’re a DACA recipient, you can’t qualify for federal student loans. However, you can qualify for private student loans—even if you don’t have an adult in your life who can cosign.

Unlike some lenders, Earnest offers cosigner-free student loans to DACA recipients. We also offer flexible repayment terms4, financial hardship protections, and fast customer support. All these options can help take the overwhelm out of the student loan process and help you focus on your studies.

Next Steps Checklist

Review your state and school-based financial aid options.
Apply for grants and scholarships first.
If you need private student loans, shop around and compare cosigner requirements.
Prequalify for private loans with multiple lenders.
Choose a lender that meets your needs and formally apply for a private loan.

Frequently Asked Questions (FAQ)

Can DACA recipients qualify for student loans?

Yes, while DACA recipients aren’t eligible for federal student loans, many private lenders offer private student loans geared toward DACA borrowers.

Do DACA students need a cosigner for private student loans?

Many private lenders do require DACA borrowers to apply with a U.S.-based cosigner. However, some lenders like Earnest are more flexible and offer private DACA student loans with or without a cosigner.

Can DACA recipients refinance student loans?

Yes, DACA recipients with private student loans can refinance them. However, it depends on the lender’s specific eligibility requirements.