California DREAM: The Impact of Financial Aid for Undocumented Community College Students

Abstract

Ineligibility for state financial aid has traditionally limited undocumented students’ access to higher education. Since 2013, the California Development, Relief, and Education for Alien Minors Act (CA-DREAM) has made state-supported aid available to undocumented college students with demonstrated financial need. We use a difference-in-difference strategy and administrative data to examine the impact of the policy on undocumented community college students’ enrollment behaviors and postsecondary outcomes. The availability of CA-DREAM aid for these students, in the form of enrollment fee waivers, drew in undocumented Hispanic male students, students with lower average incoming high school GPAs, and those who increased their 11th to 12th grade achievement. Receiving DREAM aid significantly increased the average number of units attempted and completed and, in some cases, improved persistence and attainment outcomes. Undocumented students receiving aid achieved at similar levels as U.S. citizen peers receiving aid and better than their undocumented peers not receiving aid.

Supporting undocumented community college students

“…These constraints and systemic barriers may explain why undocumented students on average are hyper‐selected into community colleges, that is, entering college more academically prepared (e.g., higher incoming GPAs) than their peers with legal status (Hsin & Reed, 2020; Ngo & Astudillo, 2019). Accordingly, undocumented students in community colleges tend to outperform their peers with legal status, having higher likelihoods of completing a degree (Conger & Chellman, 2013; Hsin & Reed, 2020).…”

“…Researchers who have examined the impact of policies providing financial aid in addition to the in‐state tuition discount have found significant positive effects on college enrollment and persistence (Bozick et al., 2016; Holzman, 2016; Ngo & Astudillo, 2019). For example, California, the state with the largest population of undocumented immigrants, implemented the California DREAM Act (CA DREAM) in 2013, providing access to state grant aid for low‐income undocumented students (Assembly Bill 131, 2011).…”

“…For others, community colleges are attractive due to lower costs and the opportunity to stay close to home (P. Pérez, 2010). Research on undocumented community college students also describes significant challenges, from paying for college (Ngo & Astudillo, 2019) to experiencing feelings of constrained inclusion that come with the precariousness of their citizenship status (Negrón‐Gonzales, 2017). Given these realities that undocumented students face, it is important to consider how community colleges—and the policies surrounding them—can better support their undocumented students.…”

Immigration Status and Postsecondary Opportunity: Barriers to Affordability, Access, and Success for Undocumented Students, and Policy Solutions

“…Research shows positive effects of offering in‐state tuition and state financial aid to undocumented students, as it increases college enrollment and improves outcomes such as academic achievement, credits attempted, and first‐semester retention (Flores 2010a, 2010b; Flores and Horn 2009; Kaushal 2008; Ngo and Astudillo 2019). However, research to date has found no evidence that these policies improve completion rates (Darolia and Potochnick 2015).…”

Undocumented Students: History and Implications for Higher Education Administrators

“…The California DREAM act has yielded positive results for the undocumented Hispanic student population when compared with U.S. citizens. Ngo and Astudillo (2019) found that undocumented Hispanic students “completed more units in their first quarter of enrollment, had higher attempt-to-completion rations, and were more likely to enroll in a second quarter” (p. 10).…”