DREAM Act of 2011

Development, Relief, and Education for Alien Minors Act of 2011 or DREAM Act of 2011 - Authorizes the Secretary of Homeland Security (DHS) to cancel the removal of, and adjust to the status of an alien lawfully admitted for permanent residence on a conditional basis, an alien who: (1) entered the United States on or before his or her 15th birthday and has been present in the United States for at least five years immediately preceding this Act's enactment, (2) is a person of good moral character, (3) is not inadmissible under specified grounds of the Immigration and Nationality Act, (4) has been admitted to an institution of higher education (IHE) in the United States or has earned a high school diploma or general education development certificate in the United States, and (5) was age 32 or younger on the date of this Act's enactment.

Authorizes the Secretary to waive specified grounds of inadmissibility for humanitarian, family unity, or public interest purposes.

Requires an alien to apply for cancellation of removal and conditional permanent resident status within one year after the later of: (1) earning a high school diploma or general education development certificate in the United States, or (2) the effective date of related final regulations.

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.