This week, the US Department of Education (ED) announced an update to the information students receive
on their FAFSA Submission Summary. Students will now receive a notification if they have sent their FAFSA, or Free Application for Federal Student Aid, information to a school where the median earnings of graduates are less than someone with a high
school diploma only.
The unspoken story with this change, is that almost 98% of students attend a college or university where graduates earn more than someone with only a high school diploma four years after graduating. The reality is that for most students, college remains
the surest path to economic security.
Hopefully, this new information will help students decide whether institutions they are considering will provide them with the economic future they are seeking.
The new low earnings indicator will be included from now on for first-time undergraduate FAFSA filers. The update is part of ED's transparency efforts, aimed at helping students with their educational choices. The indicator will show students how their
choices translate to real-world earnings. Earnings are not the only factor students and families should consider when making choices about where to go to college. Families and students should utilize all the resources and information available to
them in making the final selection.
The low earnings indicator identifies schools where graduates’ median earnings are lower than those of typical high school graduates in the same state, four years post-graduation. For schools that primarily serve out of state students, the earnings comparison
is to high school graduates nationally.
ED is using College Scorecard data to determine which schools are flagged with the low earnings indicator. College scorecard data is readily available to the
public, so that students and families can use it for their own research.
The master roster of all colleges, and the designation as low earnings or not, can be found in the FSA Data Center. While there are approximately 1,200 colleges with the low
indicator, a very small percentage (2-3%) of students are enrolled at these colleges.
Students who filed their FAFSA prior to December 7 will see the new indicator if they log into their FAFSA Submission Summary. Students who selected any of these schools will see the yellow box below. When they click on the box, students will be provided
with additional information about those schools and can update their list if they desire.
Students and families should utilize this new information and other resources available to help make an informed decision about pursuing a postsecondary education.
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