Unauthorized Aliens, Higher Education, In-State Tuition, and Financial Aid: Legal Analysis [January 11, 2016] [open pdf - 638KB]
"The existence of a sizable population of 'DREAMers' in the United States has prompted questions about unauthorized aliens' eligibility for admission to public institutions of higher education, in-state tuition, and financial aid. The term 'DREAMer' is widely used to describe aliens who were brought to the United States as children and raised here but lack legal immigration status. [...] In-state tuition and financial aid have generally been seen as public benefits for purposes of PRWORA [Personal Responsibility and Work Opportunity Reconciliation Act]. However, courts have rejected the view that state statutes providing in-state tuition to unauthorized aliens are preempted unless they expressly refer to PRWORA, or to unauthorized aliens being eligible.
CRS Report for Congress, R43447
Federation of American Scientists: http://www.fas.org/sgp/crs/index.html