As feds pull back student loans, states should reform cosmetology licensing
The Trump administration is pulling back federal student loans for cosmetology schools — and it’s a great opportunity for states to stop forcing aspiring beauticians to take on debt just to practice their trade.
TL;DR
- The Trump administration's "Do No Harm" rule will restrict federal student loans for cosmetology schools whose graduates earn less than high school graduates.
- Most cosmetology school graduates earn less than high school graduates four years after completing their programs, leading to poor loan repayment.
- Over 90% of cosmetology schools are expected to lose access to federal loans under this rule.
- States should use this opportunity to reduce the excessive training hours required for cosmetology licenses.
- Some states have already reduced required training hours, leading to lower tuition and increased enrollment.
- States could also consider eliminating cosmetology licensing entirely, as practiced in the UK, Spain, and some Canadian provinces.
- Reducing or eliminating licensing can help address the student debt crisis and expand opportunities.
- Regulation could shift to the shop level, with business registration and inspections.
- Schools would need to demonstrate educational value to attract voluntary paying students if licensing is reduced or eliminated.