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FAFSA Adds ‘Lower Earnings’ Notice as Education Dept. Data Fuels Pushback

Officials say the notice does not affect aid eligibility.

Overview

  • The new FAFSA feature flags institutions when median graduate earnings four years out fall below high school graduate earnings.
  • Education Department materials emphasize the label is for transparency and appears after FAFSA processing without influencing submission or aid.
  • The department reports that just over 2% of undergraduates attend flagged institutions, which receive about $2 billion in federal aid annually.
  • The Mirror’s review cites more than 1,000 colleges and roughly 23% of nearly 5,900 institutions labeled as lower earnings, highlighting a dispute over scope.
  • Analyses show most flagged schools are for‑profit or trade programs, with Utah’s list dominated by small cosmetology schools and Bridgerland Technical College the lone public institution identified.