DREAM Act of 2011

Requires prior to the granting of conditional permanent resident status that: (1) an alien submit biometric and biographic data, and (2) the Secretary has completed security and law enforcement background checks.

Requires an alien applying for conditional permanent resident status to: (1) register under the Military Selective Service Act if so required, and (2) undergo a medical examination.

Prohibits the Secretary or the Attorney General (DOJ) from removing an alien with a pending application who establishes prima facie eligibility for cancellation of removal and conditional permanent resident status.

Directs the Attorney General to stay the removal proceedings of an alien who: (1) meets the requirements (other than that pertaining to secondary school diploma or post-secondary school) for cancellation of removal and conditional adjustment, and (2) is at least 12 years of age and enrolled full-time in a primary or secondary school.

Establishes a six-year period of conditional permanent resident status. Terminates such status if the alien: (1) ceases to be a person of good moral character or becomes inadmissible under specified grounds, or (2) receives a dishonorable or other than honorable military discharge.

Authorizes the Secretary to remove the conditional basis of an alien's permanent resident status if the alien: (1) has demonstrated good moral character; (2) is not inadmissible under specified grounds; (3) has not abandoned U.S. residency; (4) has earned an IHE degree (or has completed at least two years in a bachelor's or higher degree program) in the United States, or has served in the Armed Forces for at least two years (or if discharged, was honorably discharged); and (5) has provided a list of each secondary school attended in the United States.

Authorizes, and sets forth the criteria for, a hardship exception to such requirements.

Requires an alien prior to having his or her conditional status removed to have: (1) satisfied citizenship requirements, (2) submitted biometric and biographic data, and (3) have had security and law enforcement background checks completed.

Requires an alien seeking to have such conditional status removed to file an application during the period beginning six months prior to, and ending on, the date that is later of: (1) six years after the date the alien was initially granted conditional permanent resident status, or (2) any extended expiration date of the alien's conditional permanent resident status.

Prohibits an alien from applying for naturalization while he or she is in conditional permanent resident status.

Sets forth provisions regarding: (1) confidentiality of information, (2) required disclosure, (3) application fraud, and (4) penalty for misuse of information.

Makes an alien in conditional permanent resident status ineligible for: (1) federal Pell grants, and (2) federal supplemental educational opportunity grants.

Amends the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 to repeal the denial of an unlawful alien's eligibility for higher education benefits based on state residence unless a U.S. national is similarly eligible without regard to such state residence.