First, she is not illegal. She is here on a student visa, making her a "legal" non-immigrant. Second, non-immigrants do not qualify for federal aid. She cannot apply for a federal loan or grant like American citizens. Finally, it sounds like she has an application pending for a green card which means pretty soon she will no longer be a non-immgrant, but will become an immigrant. And for all those close-minded people out there, let's remember that America was founded by a group of immigrants.