This article from Inside Higher Ed addresses the issue of the undocumented college-age student. Should these student be given in-state tuition? Should they receive state funded scholarships and aid? Some states, like Arizona, have targeted legislation to present undocumented students from attending state universities.
It's a tough question for the thoughtful. The major issue raised the opponents to giving in-state tuition and aid to the undocumented are those who represent the middle class: the parents of students who might not get a place in their in-state school of choice or state aid if the money and slot are given to a better qualified undocumented student.
Conversely, if an undocumented student has the academic qualifications, why should the not be admitted and receive the same benefits of their in-state peers? Despite the protests to the contrary--and a profound lack of evidence--the undocumented do pay taxes. If they are going to live in the U.S., does it not make more sense to assist them in their educational efforts so that they can become more productive citizens?