The new “earnings indicator” has been added to the Free Application for Federal Student Aid (FAFSA) process and uses existing ED data to tell students the average post-graduation earnings of a prospective college or university.
“More than half of all Americans now say a college degree is not worth the price, and total outstanding student loan debt is approaching $1.7 trillion. Families deserve a clearer picture of how postsecondary education connects to real-world earnings, and this new indicator will provide that transparency,” U.S. Secretary of Education Linda McMahon said in a statement. “Not only will this new FAFSA feature make public earnings data more accessible, but it will empower prospective students to make data-driven decisions before they are saddled with debt.”
When students submit a FAFSA application, they send personal data to institutions they are thinking about attending. Now, when students complete the form, FAFSA will show financial data for each selected institution, and the tool will show whether the institution’s average earning are below the average high school graduate, ED said. If the institution’s average earnings are found to be below that metric, the form will generate a “lower earnings” disclosure.
According to the department, more than 2 percent of undergraduate students across the U.S. go to a college or university where graduates earn less than individuals with a completed high school education on average.
“These same institutions receive upwards of $2 billion in Federal student aid annually,” ED said in a press release.
ED explained the tool can help students and parents make more financially savvy education decisions and help high school counselors guide students to make the best long-term decisions for their education and career. ED said students can further explore program-level result using the College Scorecard.
The department said the earnings indicator is meant to inform students, not to limit their choices.
“Students and families should have the full picture before making postsecondary education choices, and earnings outcomes are one of many factors students and families should consider alongside cost, mission, location, and personal interests,” ED said.
The data used for the earnings indicator is posted on the FSA Data Center website. ED said data will be actively updated with more recent earnings data as it becomes available on College Scorecard.
Katherine Hamilton is a political reporter for Breitbart News. You can follow her on X @thekat_hamilton.
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