Recently, there has been a troubling decline in Free Application for Federal Student Aid (FAFSA) applications among California high school seniors. This drop is particularly concerning among students from immigrant families, many of whom fear that applying for financial aid could expose their families to government scrutiny. Under the Trump administration, stricter immigration policies, mass deportations and an overall hostile environment toward immigrants have contributed to this chilling effect.
California, home to a large Latino and immigrant population, has seen many students hesitate to apply for FAFSA due to concerns that their information could be used to identify their family’s immigration status. As a result, they feel forced to choose between securing their future in education or protecting their families from potential deportation.
This fear isn’t unfounded; it’s fueled by President Trump’s current policies, including mass deportations, threats on birthright citizenship and the increasing overreach of the so-called Department of Government Efficiency (DOGE), which now has access to deeply personal student data.
This decline in FAFSA applications is gravely concerning because it has long-term consequences for college enrollment, access to higher education and the diversity of universities, particularly within the University of California (UC) system. If fewer students apply for financial aid, many may be unable to afford college, leading to lower enrollment rates and reinforcing cycles of economic disadvantage in immigrant communities.
The drop in FAFSA applications directly translates to fewer students receiving the financial
aid they need to afford college. This could lead students who would typically rely on grants and subsidized loans to either drop out or turn to private loans, which come with significantly higher interest rates. Unlike federal financial aid, private loans can burden students with long-term debt, making higher education an even riskier investment.
For UC campuses that prioritize serving in-state students, this decline could mean a reduction in the enrollment of low-income and first-generation students — limiting access to higher education for communities that need it most. The impact is especially severe for those from immigrant families who may already be navigating financial instability.
The role of financial aid in facilitating college success cannot be overstated. Without it, higher education becomes a privilege rather than a right or an opportunity for social mobility. This situation threatens to widen the gap between wealthy students who can afford tuition and those from disadvantaged backgrounds.
A decrease in FAFSA applications also means a decline in student diversity. Immigrant students and first-generation college students comprise a significant portion of California’s diverse student population. Diversity in higher education is not just about representation — it is about opportunity, inclusion and equity.
Many students of color, particularly Latino, Black and Asian students, rely on financial aid to attend college. These students will be disproportionately affected by declines in FAFSA applications, which will lead universities to lose valuable perspectives and experiences that contribute to a well-rounded educational environment.
The rollback of diversity, equity and inclusion (DEI) initiatives has already created additional challenges for students from marginalized communities. Now, with declining financial aid applications, the situation is worsening. When institutions lack diverse student populations, it affects the quality of education and the research and innovation produced by universities.
However, looking at the long-term consequences of a decline in FAFSA applications goes beyond college campuses. Fewer college graduates mean less skilled workers entering the workforce, particularly in crucial industries such as healthcare, technology and engineering. If students from immigrant backgrounds cannot access higher education due to financial barriers, the U.S. will face an even greater shortage of qualified professionals in these fields.
Thus, perpetuating cycles of economic disadvantage within immigrant communities harms the overall economy. Higher education has long been a pathway to upward mobility, particularly at UC Riverside (UCR) was named number one for social mobility. Without financial aid, many students will be unable to break free from systemic poverty. As the nation struggles to meet workforce demands, companies may be forced to look overseas for skilled workers, further increasing immigration to fill this workforce gap.
Addressing this issue requires the UC system and other institutions to go beyond passive support and take bold, proactive steps to support undocumented students and those with undocumented parents. Expanding state-based financial aid programs, like the California Dream Act Application (CADAA) and scholarships specifically for immigrant students would provide a crucial safety net and ensure that federal policies do not slam the door on higher education.
Policymakers must also confront the very real fears and barriers keeping students from immigrant families from applying for FAFSA. A critical first step is implementing stronger protections for student information, especially after DOGE gained access to sensitive student loan and financial aid data despite a lawsuit filed by the UC Student Association (UCSA).
This decision has raised privacy and financial security concerns for students. Therefore, more clear policies restricting access to authorized personnel, regular audits and more transparency from DOGE must be implemented to protect student data from misuse.
No one should have to choose between seeking an education and safeguarding their family. Schools and policymakers must also increase their outreach to immigrant communities, making it clear that FAFSA is a pathway to opportunity — not a risk. This means targeted campaigns, multilingual resources and direct engagement with families to dispel misinformation and reassure students that applying for aid will not put them in harm’s way.
Protecting students from immigration-related fears, expanding financial aid outreach and ensuring that all students, regardless of their background, have access to higher education will determine the future of California’s universities and the U.S. economy.
