At last: Washington listened to Main Street’s cosmetology and barber schools

July 9, 2026 - 04:49

After months of anxiety and lobbying from small business owners, the U.S. Department of Education has agreed to extend the compliance deadline for barbering, cosmetology, and massage-therapy programs under its new accountability rule. The decision comes as a relief to thousands of trade schools that argued the original timeline failed to account for the unique nature of their students' work.

Unlike traditional degree programs, students in these fields often earn tips while completing hands-on training in real salons and spas. The department's initial rule would have penalized schools if graduates did not meet certain debt-to-earnings thresholds, but critics pointed out that tip income is rarely captured in official data. This made it nearly impossible for schools to prove their programs were financially viable.

The new extension gives these institutions until 2026 to gather accurate earnings data, including tips. Industry advocates say the move finally acknowledges that a cosmetologist or barber's paycheck is not the same as a corporate intern's. "Washington listened to Main Street," said one trade group representative. "They finally saw that our students are working professionals from day one, not just students."

The change is expected to protect access to federal financial aid for thousands of students who rely on these programs to enter the workforce quickly. For now, the schools have breathing room to adjust their record-keeping without the threat of losing funding.