Education Dept. Labels Hundreds of Colleges as ‘Lower Earnings’
Katherine Knott
December 9, 2025
The colleges on the list enroll fewer than 3 percent of undergraduates.
First-time undergraduates applying for federal student aid will now receive a warning if they indicate interest in an institution where graduates don’t earn more than an adult with a high school diploma.
The new earnings indicator on the Free Application for Federal Student Aid is aimed at ensuring students have more information about their postsecondary options, Education Department officials said in a news release Monday. Consumer protection advocates generally praised the department’s move, while institutional groups criticized it.
About 23 percent of the nearly 5,900 institutions in the department’s database will be labeled as “lower earnings.” Those colleges enroll fewer than 3 percent of undergraduates and receive about $2 billion in federal student aid annually. That’s a fraction of the more than $100 billion in federal aid that’s doled out each year. The department pulled from publicly available data to generate the label, and program-level data is available online on the College Scorecard.
