The Free Application for Federal Student Aid (FAFSA) just got an upgrade: a new earnings tool to help you understand average salaries at your chosen school(s). On December 8, 2025, the Department of Education (ED) announced the earnings indicator to promote more transparency in enrollment decisions. By showing you up front how much you can expect to earn, ED is hoping to better inform your choices.
Why the Change
With rising costs and more Americans questioning the value of a college degree, ED is attempting to give families a clearer idea of how a degree will align with real life earnings. And by providing earnings data through the FAFSA application process, this data is more accessible.
More importantly, if the average salaries for college graduates are less than that of a high schooler, the FAFSA form will now show a “lower earnings” disclosure. This will be a yellow text box that appears on the FAFSA Submission Summary (FSS).
This flag represents the median income of a school’s graduates four years after completing their program. And the high school comparison is done within the same state, unless the college or university serves mostly out-of-state students. In that case, comparisons are made using the national average high school earnings.
Messaging to Look For
If one or more of your prospective schools gets flagged, here is the message you’ll see on the FSS:
“Some of Your Selected Schools Show Lower Earnings.”
You will be able to click another box that says, “See These Schools,” to go to a page that shows the median earnings for each of the schools you included on your FAFSA.
How You Can Use It
This tool is intended to help students and families make well-informed decisions. For starters, it can help you understand the monetary value for a degree from a particular school. And it is useful when comparing salary information between different colleges and universities.
The earnings indicator can also benefit those who are part of the college planning process, including:
- High school guidance counselors
- College Access Professionals (CAC) and other consultants
Limitations
The average salary information is based on College Scorecard data, including earnings figures adjusted for inflation. This data is updated at least annually.
The data does not include institutions in the following locations:
- American Samoa
- U.S. Virgin Islands
- Guam
- Marshall Islands
- Commonwealth of the Northern Mariana Islands
While this information is useful, ED has indicated that the earnings indicator should not be interpreted as moral judgment or a finite determination on return on investment (ROI).
If you have questions about the new earnings indicator or need help in evaluating average salary information, consult with a counselor or college access professional.
