The U.S. Supreme Court ruled in 1982 that all children, including undocumented aliens, can attend elementary and secondary school for free. But higher education was left up to the individual states.

In 2001, Texas became the first state to allow undocumented immigrants who graduate from a state high school to pay in-state resident tuition at public universities. Eight other states have passed similar measures since then.

But now the first group of students to benefit from the Texas law are preparing to graduate, and finding that regardless of their field of study – including in-demand fields such as nursing and engineering – they can’t be hired by an American firm.

"We have this irony – young adults who are trained and ready to join the work force but are unable to do so legally," said Josh Bernstein, director of federal policy at the National Immigration Law Center in Washington, D.C.

Supporters of reform say that well-educated immigrants can make a larger contribution to American economy. But critics say provisions that allow the illegals to pay in-state resident tuition are in fact a tax giveaway to people who aren’t in the country legally.

Now advocates are saying the Dream Act offers the only solution to students who will otherwise be frozen out of the job market.

The bill would allow undocumented aliens who came to the U.S. as children at least five years ago to get temporary legal residency when they graduate from high school.

Those who attended college or joined the military would be eligible for permanent residency.

Last year Congress took no action on the bill, the Development, Relief and Education for Alien Minors Act. But it’s expected that Sen. Orrin Hatch, R-Utah, will re-introduce the measure.

"The federal government needs to pass the Dream Act so these students can get on with their lives," said Bernstein.

The bill has bipartisan support. But opponents are intent on stalling the measure. "This bill is a crass political calculation aimed at selling an amnesty disguised as an educational initiative," charged Dan Stein, Executive Director of the Federation for American Immigration Reform.

Most of the illegal alien students are from Latin America, although others are from Asia, Africa and Europe.

One of the students caught in the job market limbo is 24-year-old Julieta Garibay, who is set to graduate with a nursing degree from the University of Texas – and has no job prospects due to her status as an illegal immigrant.

In February, Garibay joined a group from Texas who traveled to Washington to lobby Congress for passage of the Dream Act.

"So many kids without papers just stop studying and have babies," she said. "We have studied and want to be productive, but have no prospects."

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