The Department of Education is adding another layer of transparency around earnings outcomes for students and their families applying for federal financial aid for college.
The department announced on Dec. 8 it will be adding earnings data to the Free Application for Federal Student Aid. If a first-time undergraduate student selects an institution where the data shows graduates on average don’t earn more than workers in the state — or workers nationally, for schools with primarily out-of-state students — who only finished high school, the student will see a “lower earnings” disclosure, the department says.
The department cited the nation’s nearly $1.7 trillion in federal student debt owed and an NBC News poll that reports a growing share of Americans who say a college degree isn’t worth the price as contributing reasons for implementing the disclosures. The disclosures will draw on publicly available earnings data, including median earnings by institution, according to the College Scorecard, adjusted for inflation.
The College Scorecard is an online database of colleges and universities run by the Department of Education that allows users to explore and compare schools on factors including earnings outcomes, costs and graduation rates.
