Introducing the New Earnings Indicator on the FAFSA® Form

As more than half of all Americans question whether a college degree is worth the price of tuition and the federal student loan portfolio nears a staggering $1.7 trillion, the Department of Education is taking significant steps to ensure that students and families have clear information to make informed postsecondary education enrollment decisions—before they take on debt they may never be able to repay. That’s why we’re introducing a new earnings indicator to complement the Free Application for Federal Student Aid (FAFSA®) process—a transparency feature that uses current, publicly available College Scorecard data to provide students straightforward, reliable information as they consider their postsecondary options.

Why transparency matters

Postsecondary education is one of the most important investments a student can make, but it does come at a cost. The new earnings indicator helps illuminate how graduates’ typical earnings compare with those of high school graduates. For example, less than 3 percent of undergraduate students across the country attend an institution where graduates earn less than a high school graduate on average—yet, at these same institutions, students received billions in federal student loan disbursements last year. This new indicator will help students and families better understand how their choices could translate into real-world outcomes, and it will be provided at a crucial moment in the college decision-making process.

This indicator is designed to inform—not limit—student choices. It’s one additional resource students can use—alongside factors like cost, mission, location, and personal interests—to identify the path that best aligns with their goals.

How it works 

Starting on December 7, 2025, first-year undergraduate students may see a “lower earnings” disclosure in their FAFSA Submission Summary after they complete the form.

• A school receives this flag when the median earnings of its graduates, four years after graduation, are below the median earnings of high-school graduates in the same state. For schools that serve mostly out-of-state students, the comparison is made using the national median for high-school earnings. 
• Clicking on the notice provides students detailed earnings information for all the schools listed on their FAFSA form. From there, students can choose to leave their selections as is, remove a flagged school, or add other institutions. 

Students who submitted their FAFSA form before this feature launched can still view their FAFSA Submission Summary to see whether any of their chosen schools are flagged. Importantly, this notice appears after a FAFSA form is processed—and has no impact on FAFSA completion, submission, or eligibility for aid.

Using the data to strengthen decision-making 

Transparency benefits everyone involved in helping students succeed.

• Students and families can use the indicator to better understand expected earnings outcomes and make data-informed decisions about college programs.
• High school counselors, college-access professionals, and other student support entities can incorporate the data into their guidance—helping students weigh multiple considerations and evaluate long-term opportunity and value.
• Institutions can reference this publicly available data as one of several indicators of outcomes and use it to support ongoing improvement efforts.

For students and families who want to dig deeper, the College Scorecard offers program-level results and comparisons across colleges and universities nationwide.

Looking ahead 

The new earnings indicator represents an important step towards greater transparency and stronger informed choice. By providing clear information about typical post-graduation earnings during the FAFSA completion process, the Trump Administration aims to help students and families make more informed decisions that support long-term opportunity and success. This feature reflects our ongoing commitment to providing students and families with the information they need to plan confidently and pursue their desired future.