Course Catalog / BMU 104 / Lesson 4 of 5

BMU 104

Quick review

1. What is net price?

See the answer

Sticker price minus grants and scholarships.

2. Do loans lower net price?

See the answer

No. Loans must be paid back.

Why this matters

A cheap school is not a good deal if few students finish, or if graduates earn too little to repay their loans.

College Scorecard is a free tool from the Department of Education. The FTC says it shows graduation rates, what graduates usually make, what most students pay, and how former students are doing on their loans.

Start with what you already do

You already read reviews before you hire someone.

Common belief: If I work hard, the school does not matter.

What is actually true: Your effort matters a lot. But some schools have much lower graduation rates than others. Scorecard lets you see that before you enroll.

Key words

graduation rate

The share of students who finish at that school. For degree schools, Scorecard counts full time and part time students, including transfer students, and gives them 8 years.

median earnings

The middle salary of former students who got federal aid and are now working. Half earn more and half earn less.

transfer credit

Credits from one school that another school accepts.

Read the Scorecard

School B has a low graduation rate, lower earnings, and more debt. That is a warning. Numbers are made up for the example. On Scorecard, you can also compare by field of study, which can matter more than the school average.

What each number counts

• Graduation rate: for degree schools, the share of all entering students, full or part time, first time or transfer, who finished at that school within 8 years. For schools that do not grant degrees, it counts first time, full time students who finished within 150% of normal time.
• Median earnings: for former students who got federal aid and are working, not still in school.
• Typical debt: the federal loan debt for attending that school alone, not other schools.

So a low graduation rate can mean many students left or transferred. Ask the school why, and what help it gives students who work.

Ask about transfer credit

• Ask the registrar for the transfer policy.
• Send transcripts from past schools and ask which credits count toward your program.
• If you served, ask about credit for military training. The ACE Military Guide and CLEP exams can help.
• Get the answer in writing before you enroll.

Text version of this figure

Will you finish, and will it pay?. Check three numbers and your credits.

1. Step 1, Graduation rate: Do most students finish?
2. Step 2, Earnings: What do former students make in your field?
3. Step 3, Debt: How much do students owe?
4. Step 4, Transfer credit: Which of your credits count? Get it in writing.
5. Red flag: Low graduation, low earnings, and high debt together.

Source: College Scorecard; FTC; Federal Student Aid (Oct 29, 2026).

Online or campus?

Run the same checks for online schools: accreditation, net price, and Scorecard numbers. Also ask how you will get help from teachers, tutors, and advisors, and what tech you need.

Worked example: Marco checks two schools

Marco has 24 credits from a college he left years ago.

1. On Scorecard, School A graduates 55% of students. School B graduates 21%.
2. He asks both registrars about his 24 credits.
3. School A accepts 21 credits in writing. School B says maybe, after he enrolls.
4. He picks School A.

Marco is a made up example.

Practice: Read two Scorecards

Medical assistant programs	School A	School B
Graduation rate	58%	24%
Median earnings	$36,000	$27,000
Typical debt	$9,500	$18,000
Transfer answer for 15 credits	12 credits, in writing	Probably, after you enroll

List the warning signs for each school. Which would you keep on your list?

Check your practice: feedback

School A: no warning signs. More than half finish, earnings are higher, and debt is lower. The credit answer is in writing.

School B: four warning signs: few finish, lower earnings, higher debt, and a vague credit answer. Keep School A. Numbers are made up for the example.

Common mistakes

• Looking only at cost. Check graduation, earnings, and debt too.
• Accepting a verbal yes on credits. Get it in writing before you enroll.
• Using school wide numbers only. Check your field of study when you can.

Check your understanding

Take it as many times as you like. Pick an answer, then open the feedback.

1. School C graduates 25% of students and has high debt. What does that suggest?

1. A warning sign
2. A sign it is selective
3. A sign of a low price

See the answer and feedback

A is correct. Yes. Look closely or look elsewhere.

B: A low graduation rate does not mean the school is hard to get into. Review Read the Scorecard.

C: High debt points the other way. Review Read the Scorecard.

2. A school says your credits will probably transfer. What should you do?

1. Enroll and ask later.
2. Get the answer in writing first.
3. Take the recruiter's word.

See the answer and feedback

B is correct. Yes. Get it in writing before you enroll.

A: After you enroll, you have less pull. Review Ask about transfer credit.

C: A recruiter's word is not a written answer from the registrar. Review Ask about transfer credit.

3. School D shows median earnings of $40,000. What does that mean?

1. Most earn exactly $40,000
2. No one earns less than $40,000
3. Half earn more than $40,000

See the answer and feedback

C is correct. Yes. Half earn more and half earn less.

A: Median is the middle, not what most people earn. Review Key words.

B: Half earn less. Review Key words.

Next up

Next you will learn the red flags and make your choice. Go to Lesson 5: Red flags and your choice.

Key words: Course glossary (A to Z, with the lesson that teaches each one).

Stuck or have a question? Ask BMU Learner Support.

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