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.
Kin Lane fondly remembers working on the Free Application for Federal Student Aid in 2013. FAFSA is used by millions of college students each year to help access scholarship money, and Lane, an API expert, had an up-close look at the system. He saw the importance of ensuring financial data remains stored securely and can be accessed by Internal Revenue Service tools. The job wasn't flashy, but it was tangibly meaningful - when his own daughter went to college, he would use FAFSA himself.
The new application is also still in its beta testing stage. "The second phase of testing is now open and runs through September 2025," the Department of Education's announcement explains. "Anyone can request to participate, and we'll invite participants throughout this phase." The announcement also noted that if students apply for aid during the beta testing period, they won't need to resubmit the application later.
