If the kids are born here in the USA, they are citizens of the USA. Thus, they are eligible for submitting a FAFSA application and they may potentially eligible for College Financial Aid based on the FAFSA calculations for Expected Family Contribution.
If the kids are dependents of H1 visa holders, they will have H4 Dependent VISAs instead. Individuals with H1 or H4 visas are not considered to be eligible non-citizens and therefore are not eligible for U.S. federal student aid.
The most common category of eligible noncitizen is one of permanent resident status(someone with a “green card”), but there are other categories as well.
Some colleges may require foreign students to complete the FAFSA as a convenient way of getting their information into the college’s system, but these students will not be eligible for U.S. federal student aid.
For more specific information, please visit: studentaid.gov