How New FAFSA Degree Earnings Alerts May Change Your College Picks

The Department of Education’s new lower earnings indicator, rolling out to the Free Application for Federal Student Aid (FAFSA) form on December 7, 2025, aims to help applicants make more informed choices by highlighting career outcomes for graduates. Could such data-driven alerts reshape what schools—and degrees—students consider worth the investment?

What Does the New FAFSA Lower Earnings Indicator Show?

The new FAFSA warning flags academic programs where typical graduates earn less than others with only a high school diploma, based on official data profiles.

When you fill out your 2026–27 FAFSA, you’ll start to see warnings next to certain programs. These alerts indicate that graduates typically earn less than those with just a high school degree. The goal: to boost transparency around educational returns and avoid surprises about job prospects post-graduation. You still fully control your college choices—the warning is simply an added layer of information, not a rejection or constraint. For official guidance and updates, visit the Department of Education announcement.

How Might Earnings Alerts Shift Your College Decision?

Armed with expected earnings data, students and families may weigh cost, debt, and long-term payoff differently when picking colleges and majors.

Previously, many relied on reputation, vague job outlooks, or other students’ stories. With the new alerts, financial outcomes are easier to weigh upfront. This empowers families to compare program costs and career earnings, possibly reshuffling which schools, majors, or credential levels feel safe—or risky—to pursue. Lower earnings warnings can also prompt more informed conversations with advisors and encourage consideration of in-state, transfer, or career/technical school options in addition to traditional universities.

What Steps Should Students and Families Take With Benefit Alerts?

Start with the FAFSA’s new data, but dig deeper: not all low-earning majors lead to individual hardship, and personal passion has value too.

Think of this warning as a launchpad for further research. If your intended program gets flagged, look beyond the initial alert:

• Visit the school’s career outcomes office and check job placement data for your specific area.
• Compare average debt for flagged programs to likely entry-level earnings.
• Explore scholarships or state/institutional grants that could offset costs if you’re passionate about a flagged field.
• Schedule a meeting with a career counselor or alumni for realistic insights.

Remember, degree choice is personal—alerts are just one tool to support your financial future.

Eager to see where your favorite schools or programs stand? Use the new FAFSA tool and ask schools for extra career outcomes info. Staying proactive now may mean better choices—and less regret—later. Check your eligibility, aid packages, and price comparisons today—there’s no downside to being fully informed.