U.S. Department of Education Launches New Earnings Indicator to Support Students and Families in Making Informed College Decisions

Today, the U.S. Department of Education (the Department) launched a new earnings indicator to complement the Free Application for Federal Student Aid (FAFSA®) process. Drawn from existing Department data, the new earnings indicator provides students and their families with clear, easy-to-understand information about a school's post-graduation earnings.

As part of the FAFSA application, prospective students send their personal data to institutions they have expressed interest in attending. Once the form is complete, the FAFSA will present key financial data for each selected institution. If the institution's average earnings are below the average high school graduate, the form will generate a "lower earnings" disclosure. This information will help prospective students and families better navigate their postsecondary application journey.

"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," said U.S. Secretary of Education Linda McMahon. "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."

More than 2 percent of undergraduate students nationwide attend an institution where graduates earn less than a high school completer on average. These same institutions receive upwards of $2 billion in Federal student aid annually.

The earnings indicator is part of the Department's broader strategy to enhance transparency in higher education and ensure students and their families have access to actionable information about postsecondary outcomes and value. Key features include:

• Greater Transparency: Students and families can identify which schools' graduates have lower typical earnings compared with high school graduates, helping them understand the financial implications of their college choice.
• Publicly Available Data: The indicator uses publicly available data to highlight earnings outcomes at a critical moment in the college decision-making process. Students can further explore program-level results using the College Scorecard at CollegeScorecard.ed.gov.
• Providing More Support to Students: High school counselors, college access professionals, and other student-support entities can use the information as a tool to guide students in making informed, long-term decisions about their education and career.

The Department emphasizes that the earnings indicator is intended to inform, not limit, student 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. To support informed decision-making, the data used for the new earnings indicator are now posted on the FSA Data Center, and the Department will update the metric when more recent earnings data become available on the College Scorecard.

For more details on the earnings indicator, check out Under Secretary of Education Kent's Homeroom Blog, Federal Student Aid's Electronic Announcement, and the FSA Data Center.

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