As feds pull back student loans, states should reform cosmetology licensing The Trump administration’s “Do No Harm” rule will deny federal student loans to cosmetology schools whose graduates earn less than high school graduates, as most cosmetology programs fail to meet this benchmark and have poor loan repayment outcomes. This presents an opportunity for states to reduce excessive training hours for cosmetology licenses, which have been subsidized by federal loans. States could also consider eliminating licensing requirements altogether, as seen in other countries, to reduce debt and expand career opportunities.

• 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.