FAFSA® Cost & Earnings Update: What You Need to Know - Sallie

Big new for anyone planning for college: The Department of Education has updated the FAFSA^® process to include cost and earnings data for college programs - right at the point of application. No more jumping between federal websites to compare outcomes. Now, families get a clearer picture of what different programs cost and what graduates typically earn, all in one place. 

Why this FAFSA^® update matters

Choosing a college isn't just about campus vibes or location-it's about value and future opportunities. With this update, students can see which programs offer the best return on investment before making big decisions about borrowing or enrolling. 

Our "How America Pays for College 2025" report shows that transparency is key for families navigating college costs. Our financial aid expert, Ed Recker, sums it up:

“Making the information available immediately at the point of FAFSA completion is a positive step forward for cost and earnings transparency.”

What the data says

Here’s the quick breakdown:

• 23% of Title IV schools will trigger a “lower earnings” flag (their grads earn less than high school-only grads)—but only 2% of undergrads attend these schools.
• About 50% of flagged schools are hair/beauty academies.
• These schools account for $2 billion in federal aid, just 1.7% of total federal grant and loan volume.

Bottom line: This change is big for transparency, but it won’t shake up most students’ options.

FAFSA completion: The real story

While you need to apply every year, here's the good news: a majority (64%) of families say the new form is easier to complete. Still, nearly 30% of families skipped it. Top reasons why:

• 34% thought their family earned too much to qualify
• 15% lacked the necessary information 
• 15% missed the deadline

Tips to maximize your financial aid

• Always file the FAFSA^®. Even if you think you won’t qualify, it’s free and opens doors to aid.
• Use the new data. Compare programs based on cost and earnings before you borrow.
• Bookmark resources. Our FAFSA^® Guide and Scholly Scholarships search tool make it easier to unlock free money for school.

Our ongoing research into how students and families plan and pay for college shapes these recommendations, empowering families to make confident, informed decisions. 

FAFSA^® myth busting

• Myth: “FAFSA® locks me into a school.”
  Truth: Nope. Filing just keeps your options open.
• Myth: “It takes forever.”
  Truth: With updates and prep, you can finish in under an hour.
• Myth: “I won’t qualify because my parents make too much.”
  Truth: Don't assume this—nearly all who file qualify for some form of aid.
  

What happens if I miss the FAFSA^® deadline?

Every year, billions in aid go unclaimed because students skip or delay the FAFSA^®. Don’t let free money slip away. Filing could literally make college more affordable. Find out when the FAFSA^® is due and file as early as possible—because some aid is awarded first come, first served.

Ready to get started?

Check out our FAFSA® Guide for step-by-step help and keep your options open.