ED Designates 23% of Colleges "Lower Earnings"

"First-time undergraduates applying for federal student aid will now receive a warning if they indicate interest in an institution where graduates don't earn more than an adult with a high school diploma. The new earnings indicator on the Free Application for Federal Student Aid is aimed at ensuring students have more information about their postsecondary options, Education Department officials said in a news release Monday. Consumer protection advocates generally praised the department's move, while institutional groups criticized it."

"About 23 percent of the nearly 5,900 institutions in the department's database will be labeled as "lower earnings." Those colleges enroll fewer than 3 percent of undergraduates and receive about $2 billion in federal student aid annually. That's a fraction of the more than $100 billion in federal aid that's doled out each year. The department pulled from publicly available data to generate the label, and program-level data is available online on the College Scorecard."

""This new indicator will help students and families better understand how their choices could translate into real-world outcomes, and it will be provided at a crucial moment in the college decision-making process," Education Under Secretary Nicholas Kent wrote in a blog post. "This indicator is designed to inform-not limit-student choices. It's one additional resource students can use-alongside factors like cost, mission, location, and personal interests-to identify the path that best aligns with their goa"

First-time undergraduates applying for federal student aid will receive a warning on the Free Application for Federal Student Aid if they indicate interest in an institution whose graduates do not earn more than adults with a high school diploma. The earnings indicator labels about 23 percent of nearly 5,900 institutions as "lower earnings." Those colleges enroll fewer than 3 percent of undergraduates and receive about $2 billion in federal aid annually, a small share of over $100 billion distributed each year. The label uses publicly available data and links to program-level results on the College Scorecard. Consumer advocates praised the change, while institutional groups criticized it. A forthcoming rule will provide additional program-level earnings data.

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