The U.S. Department of Education added an earnings indicator to FAFSA that flags institutions whose graduates earn less than typical high-school graduates, displaying a “low earnings” disclosure in students’ FAFSA Submission Summary. Secretary Linda McMahon said the tool will make earnings data more accessible and help prospective students make data-driven decisions before taking on debt. The disclosure uses College Scorecard data comparing median earnings four years after credential completion against state or national high-school median earnings for cohorts who enrolled in 2014–15 and 2015–16. Roughly 1,300 institutions — about 23% of institutions reviewed — were flagged, a group dominated by for-profit providers and short-term certificate programs. Admissions and financial-aid offices will need to prepare counseling resources and communications as low-earnings disclosures appear in prospective students’ FAFSA summaries; the policy may spur enrollment shifts away from flagged programs and pressure institutions to demonstrate value or redesign offerings.
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