Rethinking Deportation: The Economic and Social Challenges Migrants Face in the US
With President-elect Donald Trump's latest plans to crack down on immigration, including restarting the border wall, increasing deportations, and cutting back on support programs, the administration is making it clear that it means business when it comes to limiting migration. Everyone should recognize the struggles undocumented migrants face in trying to build a stable life.
Our platform, which provides financial support for low-income populations, conducted a study among their clients to highlight the challenges that migrants face when attempting to integrate into the U.S. economy.
We analyzed the main reasons for credit denials, income levels, approval rates by demographic groups, crime rates, and other factors affecting migrant lives. The results indicate a need to reassess approaches to this vulnerable population.
Full Survey Details
How is your financial stress level compared to last year? |
|
| Same level | 40% |
| More stress | 45% |
| Less stress | 15% |
Have you been denied financial assistance due to a lack of credit history? |
|
| Yes | 60% |
| No | 40% |
How long do you think it would take to save enough for basic expenses (rent, food) if you lost your job? |
|
| Less than a month | 55% |
| One to three months | 30% |
| More than three months | 15% |
Have you experienced discrimination at financial institutions? |
|
| Yes | 35% |
| No | 65% |
(For non-citizen residents) Would you avoid seeking assistance due to fear of deportation? |
|
| Yes | 20% |
| No | 80% |
Do you plan to apply for a loan or credit in the coming year? |
|
| Yes | 25% |
| No | 75% |
Have you experienced anxiety about a possible reduction in income in the future? |
|
| Yes | 80% |
| No | 20% |
What do you spend the majority of your income on? |
|
| Housing | 45% |
| Food | 30% |
| Transportation | 15% |
| Other expenses | 10% |
(For non-citizen residents) Which of the following causes you the most stress? |
|
| The need to hide due to legal status | 20% |
| Paying rent | 35% |
| Limited access to healthcare | 30% |
| Low income | 15% |
(For non-citizen residents) Are you considering returning to your home country due to financial difficulties? |
|
| Yes | 33% |
| No | 67% |
Key Findings
- Overall loan approval rates for migrants: Only 5% of migrants receive loan approval, compared to a 79% approval rate for Native Americans.
- Primary reasons for migrant loan denials:
- Insufficient income to cover the loan – 90%.
- Lack of credit history – 60%.
- Criminal records (even minimal infractions) – 10%.
- Income comparison: the average income for undocumented migrants is $18,000 per year, which is significantly lower than the national average ($54,000).
- Crime rates: the crime rate among migrants is 2.5%, lower than the national average of 3.8%.
Loan Approval Rates by Demographic
| Group | Approval Rate |
| Native American | 79% |
| White | 70% |
| Black | 40% |
| Migrants (overall) | 5% |
| Migrants w/ Criminal Record | 10% |
| Migrants w/ Credit History | 50% |
Main Reasons for Migrant Loan Denials
Here are the most common reasons for loan denials based on our data:
- Insufficient income (90% of denials): The low income level among migrants makes it difficult for them to meet the minimum eligibility requirements for loans.
- Lack of credit history (60% of denials): Most migrants, especially recent arrivals, lack credit history, which automatically reduces their chances of securing credit.
- Criminal records (10% of denials): Even minor infractions, including fines for administrative violations, often result in denials. Contrary to public stereotypes, most records do not involve serious offenses.
Comparison of Migrant Incomes with National Levels
For migrants working illegally, the average income is around $18,000 per year. This amount is nearly three times lower than the national average of $54,000. This low income not only restricts access to credit products but also limits migrants' ability to save and improve their financial situation.
| Group | Average Annual Income |
| Undocumented Migrants | $18,000 |
| National Average | $54,000 |
Crime Rate Among Migrants vs. National Average
Public stereotypes often associate migrants with higher crime rates, but our data shows a different picture. The crime rate among migrants is 2.5%, while the national average is 3.8%.
| Group | Crime Rate |
| Undocumented Migrants | 2.5% |
| National Average | 3.8% |
Psychological and Social Pressures
Life without reliable documentation creates many daily challenges. Undocumented migrants often work in hazardous conditions, avoiding even visits to hospitals due to the risk of deportation. This stressful lifestyle results in high rates of depression and anxiety among migrants.
- Psychological impact: According to the American Psychological Association, migrants experience increased anxiety, fear, and stress due to their legal status and the threat of deportation.
- Workplace risks: More than 80% of migrants work without insurance and without access to assistance in case of injury.
Comparison of Housing and Transportation Costs
Migrants are forced to spend a significantly larger share of their income on housing, transportation, and food compared to native residents, reflecting the instability of their situation.
- Housing costs: migrants spend more than 50% of their income on rent, whereas the national average is 30%.
- Transportation costs: due to limited access to public transportation, many migrants spend up to 20% of their income on personal transportation, which is double that of other population groups.
Main Takeaways
We tried to highlight economic and social challenges faced by migrants in the U.S. Low incomes, difficulties accessing credit, and high rejection rates force many to live on the edge of survival. The conditions for migrants and opportunities for their integration should be totally reconsidered. It could create positive effects both for the migrants themselves and for the economy.
Disclaimer: The opinions presented in this article reflect a thorough analysis based on internal data and verified public sources. However, they do not necessarily represent the official position of the editorial board.