A new federal FAFSA feature is putting a cluster of San Antonio trade and beauty schools on a list that flags their graduates as earning less, on average, than typical high school graduates. Campus leaders warn the label could oversimplify how certificate programs work and how much debt students take on. The designation will appear on students’ FAFSA Submission Summaries and could shape college choices as financial aid packages are considered.
How the federal "lower earnings" tag works
In a memo published Dec. 8, the U.S. Department of Education added a "lower earnings" disclosure that shows up on the FAFSA Submission Summary when an institution’s typical graduate earnings fall below a state- or national-level benchmark, a move the agency describes as a transparency tool for families wading through college options. U.S. Department of Education materials explain that the metric relies on College Scorecard data, American Community Survey estimates, and IPEDS, and that the underlying dataset is posted on the FSA Data Center for institutions to review.
Which local schools were flagged
A local look at that dataset shows at least a dozen San Antonio-area schools are marked as "lower earners," including Alamo City Barber College, Milan Institute of San Antonio, Ogle School of Hair, Skin and Nails, Southern Careers Institute, Southwest School of Business and Technical Careers, and the South Texas Vocational Technical Institute. San Antonio Report notes the disclosure is attached to more than 1,300 institutions nationwide and to over 100 colleges in Texas.
San Antonio campus leaders push back
Some local campus leaders say the new tag risks flattening a pretty complicated picture. “We do agree and feel that students do need to have clear information prior to enrolling,” Delilah Olivares, campus director at Southern Careers Institute, told San Antonio Report, but she warned the label is “a very blanket statement” that can create misleading impressions about what career training in the region actually delivers. Olivares said many students use short-term certificates to enter local jobs or to stack credentials, and she urged that earnings disclosures be paired with clearer information about debt and placement.
What the school-level data show
Southern Careers Institute offers a number of short medical and technical programs across San Antonio’s north and south campuses, and the college says it works to keep student borrowing modest. Program offerings are detailed on Southern Careers Institute, while College Scorecard–based profiles compiled by third-party snapshots show typical borrower debt for SCI attendees in the low-to-mid-$8,000s. Prospective students are encouraged to line up program-level outcomes alongside cost and placement when weighing training options.
Why local leaders say the label can mislead
The department compares an institution’s median graduate earnings with state or national median earnings, producing state-level cutoffs that fall in the mid-$30,000s, a threshold that can sit above typical local wages in some cities. That matters in San Antonio, where per-capita income was $32,983 in 2023, according to Census QuickFacts, making the federal benchmark feel distant from many entry-level local jobs.
What students will see and where to check more
Students who add a flagged school to their FAFSA Submission Summary may see a “lower earnings” notice alongside the institution’s name. Federal Student Aid says the data will be updated as newer program-level outcomes become available and that the tool is meant to inform, not limit, student choices. The dataset and school-level earnings details are posted on the FSA Data Center, and counselors are advised to consult program pages on the College Scorecard for finer-grained results.
For San Antonio students weighing career training, campus leaders say the most useful next steps are to ask schools for placement and wage data for the specific program you want and to compare those figures on the College Scorecard before borrowing. Counselors and families are also encouraged to ask about short-term placement rates and whether the school has direct employer connections or apprenticeship pathways that can boost early earnings.
