The U.S. Department of Education has finalized a new rule that changes how colleges and career schools will be evaluated based on graduates' earnings. However, salon and spa education programs such as cosmetology, barbering, and esthetics will have an extra year before the new requirements apply.
The American Association of Career Schools (AACS) called the delay a win for beauty and wellness training schools, instructors, students, and business owners who spoke out during the rulemaking process.
"The minimum one-year delay is beneficial for our industry, and it happened because cosmetologists, barbers, estheticians, massage therapists, educators, and small business owners nationwide made their voices heard," says John D. Russell, JD, executive director of AACS.
"We thank the Department of Education for building this additional time into the final rule, and we see this as an opening rather than an endpoint."
The new rule applies to schools that participate in federal Title IV student aid programs. It creates a new accountability system that measures certain educational programs based in part on the earnings of their graduates.
Beauty industry education advocates argued the new framework could shutter more than 92.5% of cosmetology and wellness programs because of its early-career earnings requirements.
The Department of Education decided to delay enforcement of the rule for cosmetology, barbering, and similar programs because many graduates work in occupations where income includes tips. Industry leaders have argued that tipped wages are not fully reflected in the data used to measure graduates' earnings.
As a result, beauty and wellness programs are among those granted an additional year before the new accountability standards take effect.
Russell says AACS plans to continue working with the Department of Education, the administration, and Congress to evaluate the new standards, prepare for compliance, and continue working toward a long-term solution that protects access to federal student aid while ensuring educational quality.
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