Workforce Pell Value-Added Earnings Test Approximation

Under the Workforce Pell proposed rules, programs must show that graduates earn enough above the poverty line to justify tuition costs. What follows is not the exact federal value-added earnings calculation, but a best-available approximation using the best available public earnings data: PSEO from the U.S. Census Bureau. See the U.S. Department of Education guidance for the official methodology.

The test adjusts earnings for regional cost of living, subtracts 150% of the Federal Poverty Level, and compares the result to published tuition. Programs where value-added earnings exceed tuition pass. Read the technical note for full methodology and limitations.