FAFSA Will Flag Colleges Whose Graduates Earn Less Than High‑School Graduates

The U.S. Department of Education announced Monday that the Free Application for Federal Student Aid (FAFSA) will add an earnings indicator to alert students when a selected institution produces weak financial outcomes for graduates.

What’s Changing

Under the new feature, FAFSA will display key earnings information for each college a student selects during the application process. If a school's average graduate earnings fall below the average earnings of a high school graduate, a prominent “low earnings” disclosure will appear alongside the institution’s summary data.

Why It Matters

The Education Department said the change aims to give families clearer, more accessible information about how postsecondary education translates into real‑world income. Officials noted that more than 2% of undergraduate students attend institutions where the typical graduate earns less than someone with only a high school diploma, and that billions of dollars in federal student aid flow to those colleges each year.

“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 Secretary of Education Linda McMahon.

The department added that students who want more detailed outcome and financial data can consult the College Scorecard, which will continue to provide granular metrics about earnings, debt, and loan repayment rates.

Context

The announcement comes after a period of significant changes to the FAFSA process: recent years have included efforts to simplify the form and earlier-than-usual launches of the application. Some observers expect application volume to be high this year even as public skepticism about the value of a college degree grows.

This update is intended to help prospective students make more data‑driven decisions before taking on debt, by surfacing earnings outcomes at the point where they list and compare colleges on the FAFSA.