President Donald Trump’s Department of Education (ED) on Monday launched a new tool aimed at informing students about their earning potential after graduation before taking on student debt.
The new “profit indicator’ has been added to the Free Application for Federal Student Aid (FAFSA) process and uses existing ED data to tell students the average post-graduation earnings of a prospective college or university.
When students submit a FAFSA application, they send personal information to institutions they plan to attend. When students fill out the form, FAFSA will show financial data for each selected institution, and the tool will show whether the institution’s average earnings are less than that of the average high school graduate, ED said. If the average income of the institution is found to be below this benchmark, the form will generate a ‘lower income’ notification.
According to the department, more than 2 percent of U.S. students attend colleges or universities where graduates earn less on average than those with a completed high school education.
“These same institutions receive more than $2 billion in federal student aid annually,” ED said in a news release.
ED explained that the tool can help students and parents make more financially wise education decisions and help high school counselors guide students in making the best long-term decisions for their education and careers. ED said students can further explore program-level outcomes using the College Scorecard.
READ MORE: Exclusive – Education Secretary Linda McMahon: Parents, students must prioritize ‘Return on Investment’ for career success
The department said the income indicator is intended to inform students, not limit their choices.
“Students and families need to have the full picture before making postsecondary education choices, and income outcomes are one of many factors students and families should consider, along with cost, mission, location and personal interests,” ED said.
The data used for the profit indicator is posted on the FSA Data Center website. ED said the data will be actively updated with more recent earnings data as it becomes available College Scorecard.
Katherine Hamilton is a political reporter for Breitbart News. You can follow her on X @thekat_hamilton.
#Education #Department #updates #FAFSA #loan #applications #disclose #average #earnings #graduates #students #debt