Colleges With Low-Earning Grads to Get Red Flag in New FAFSA

For students filling out financial aid forms, some colleges might now come with a warning.

This week, President Donald Trump’s Education Department added an “earnings indicator” to the Free Application for Federal Student Aid (FAFSA) process, which will flag any school where the average earnings of its graduates is below the average earnings of high-school graduates. Experts say the move is a step forward in helping young people decide if the soaring cost of college is worth it — but that much more work is needed.

When students complete their FAFSA application — the form used to apply for federal grants, loans ...