Overview:
The U.S. Department of Education has added a new “earnings indicator” to the FAFSA® application that warns students about earning potential.
Starting on December 7, 2025, first-time undergraduate applicants may see a new feature in the FAFSA that indicates whether the median earnings of its graduates four years after completion fall below the median earnings of high school graduates in the same state.
The agency announced this week that a new earnings indicator will be incorporated into the Free Application for Federal Student Aid (FAFSA®) process, using publicly available College Scorecard data to compare typical post-graduation earnings with those of high school graduates. The goal, officials say, is to help students make better-informed decisions before taking on debt.
“Families deserve a clearer picture of how postsecondary education connects to real-world earnings, and this new indicator will provide that transparency,” U.S. Education Secretary 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.”
According to federal data, fewer than 3 percent of undergraduate students attend institutions where graduates earn less than the average high school graduate. Still, students at those same institutions received billions of dollars in federal loans last year. The new indicator is meant to highlight those disparities.
Officials emphasize that the tool is intended to guide, not restrict, students. It is “one additional resource” that families can consider alongside factors such as cost, location, institutional mission, and personal interests.
Beginning December 7, 2025, first-time undergraduate applicants may see a “lower earnings” disclosure in their FAFSA Submission Summary after completing the form. A school receives the designation when the median earnings of its graduates four years after completion fall below the median earnings of high school graduates in the same state. For colleges that enroll mostly out-of-state students, the comparison is made using the national median for high-school earnings.
Students who click the notice will be able to review detailed earnings data for all institutions listed on their FAFSA. They may then choose to keep their selections, remove flagged schools, or add new ones. The disclosure will appear only after a FAFSA form has been processed, meaning it will not affect completion, submission, or aid eligibility.
Supporters of the change say the information will be useful not only to students and their families but also to the educators and institutions that guide them. High school counselors, college-access professionals, and advising organizations may incorporate the data into their planning conversations. Colleges and universities can also review the publicly available information as part of their improvement and accountability efforts.
Students seeking additional detail can continue to use the College Scorecard, which includes program-level earnings and comparisons across institutions.
According to Nicholas Kent, Under Secretary of Education, U.S. Department of Education, the new changes will bring stronger transparency in a statement.
“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.”
