The government funding of illegal immigrants, that don't claim U.S. residency nor pay taxes, is adding to the nation's debt. Millions of U.S. dollars go to help illegal immigrants pay for k-12 and secondary education (some even pay in-state tuition for college) as well as their welfare, Medicaid and other social services due to a lack of verification. Helping to finance illegal immigrants in a time of economic crisis is further putting the country in debt. Some undocumented immigrants do pay taxes out of pay checks (with fake social security numbers) and state taxes from purchases at the store. This is thought to counterbalance the burden of educational costs, but is actually far from it. Illegal immigrants should not receive government funding when America is already in a financial crisis.
Secondary education benefits such as in-state tuition and grants going to illegal immigrants are costing American citizens millions. It has come to be that, in many states across the country, if a person meets the state's requirements for residency, they can qualify for in-state tuition. It's improbable for someone who has an illegal status to be eligible for essentially a tuition discount for in-state residents when they're not even a legal resident of the country. Peter Kirsanov, a member of the National Labor Relations Board and the U.S. Commission on Civil Rights, asserts that the primary reason for in-state tuition is that the student's parents generally have been paying taxes for the past 18 years, providing revenue for the state's college, yet in some states illegal immigrants can become eligible for residency and in-state tuition rates within two or three years. Out-of-state tuition can be triple that of in-state tuition cost, resulting in a huge loss for the state; "according to the Congressional Budget Office, making illegal alien students eligible for federal tuition assistance through Pell grants would have cost $195 million in 2003 and $362 million over the 2003-2006 period" (Martin). The hundreds of millions of U.S. dollars being lost through tuition discounts and other financial assistance are also accompanied by the illegal loans that were made that attribute to the nation's economic crisis.
Fraudulent loans and mortgages had a large impact in the downfall of the nation's economy. When the housing industry fell and the stock market crashed many people lost their homes and other assets due to foreclosure and lack of payments on their loans. A large percentage of those who became victim to the crisis were immigrants. Many lenders were making it easy for illegal immigrants to obtain loans and mortgages by not requiring much documentation. Lankford found that "the defrauders manufactured and submitted false employment and income documentation for borrowers; most were illegal immigrants from Mexico. To date, the FBI reported, 'Fifty-eight loans with a total value of $6.2 million have gone into default, with a loss to the Housing and Urban Development Department of over $1.9 million". The lenders share blame with immigrants for this impact, since most of them knew they were committing fraud. The desire to increase business, obtaining which through illegal measures, has ultimately been the downfall of the United States economy. Immigration has not only had an effect on the economy on society in many other ways too.
Illegal immigration largely affects the quality, human capital, and the prosperity of the United States, particularly in California. When immigrants come in and already have a learned skill and some education, naturally it would have a positive impact on the societies that they move to. When people come into any country or new area and have little skill and/ or education, then of course the society will be impacted negatively.