Secretary Linda McMahon standing next to President Donald Trump (Photo by Linda McMahon)¶
The U.S. Department of Education announced a new tool today that will provide students and their families with information about post-graduation earnings for colleges and universities.¶
This "earnings indicator" will be included in the Free Application for Federal Student Aid (FAFSA) process that students undertake each year. Once students complete their FAFSA, the indicator will provide them with key financial data for each institution of higher learning they've expressed interest in attending.¶
If the institution’s average earnings are below the average high school graduate, the form will generate a “lower earnings” disclosure. According to a department news release, more than 2 percent of undergraduate students nationwide attend an institution where graduates earn, on average, less than a high school graduate.¶
Navigating Postsecondary Journey¶
U.S. Secretary of Education Linda McMahon says the information will help students “better navigate their postsecondary application journey.”¶
“More than half of all Americans now say a college degree is not worth the price, and total outstanding student loan debt is approaching $1.7 trillion. Families deserve a clearer picture of how postsecondary education connects to real-world earnings, and this new indicator will provide that transparency,” said McMahon. “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.” ¶
The earnings indicator uses publicly available data posted on the FSA Data Center. Students can further explore program-level results using the College Scorecard.¶
