Median earnings is the midpoint of the earnings distribution for a defined group of former students, most often Title IV recipients, as published on College Scorecard.
How it is measured
The Department identifies the cohort of Title IV students who entered or completed in a given period, obtains their earnings from tax records in the target year, orders the values, and reports the middle value. Small cohorts are suppressed. Separate figures may be shown for completers versus all entrants.
Example: among Title IV recipients who completed a bachelor’s degree at an institution and are working ten years later, the ordered earnings have a middle value of $52,000. That is the median earnings figure displayed on Scorecard. Half the measured completers earned more and half earned less.
How it differs
ROI calculations sometimes divide earnings by cost or debt; median earnings is the raw earnings input. Median debt describes borrowing, not income. Bureau of Labor Statistics occupational wages describe typical pay for a job title, not the outcomes of a specific institution’s graduates.
Common errors
Treating the Scorecard median as the expected salary for every graduate. Comparing earnings of completers at one institution with earnings of all entrants at another. Ignoring the Title IV restriction when the student population includes many non-aided students.
References
- 1. College Scorecard earnings methodologyMedian earnings of Title IV recipients
- 2. Scorecard technical documentationCohorts and time windows
Median earnings is the midpoint of the earnings distribution for a defined group of former students, most often Title IV recipients, as published on College Scorecard.