The Education Department rolled out a new FAFSA disclosure that warns applicants if a listed college’s graduates report relatively low earnings four years after graduation. The on‑screen yellow box pulls College Scorecard data and compares median graduate earnings with state or national high‑school medians, giving prospective students a direct earnings signal when they list schools on FAFSA. Separately, the department published a list labeling hundreds of colleges as “lower earnings,” a move designed to increase transparency but one likely to affect enrollment and reputation for small institutions. Education Secretary Linda McMahon framed the change as empowering families to make data-driven choices; undersecretary Nicholas Kent said the indicator is informational and does not change federal aid eligibility. Institutions affected by the labels and the new FAFSA notice are preparing for possible enrollment impacts and increased counseling demand. Higher-education leaders warn that the signal could disproportionately affect institutions serving nontraditional and out-of-state cohorts, and they are strategizing responses that include enhanced outcome reporting and career services.