Trump Cuts Student Loans to Cosmetology Schools, Forcing States to Defend Licensing Rules

The Trump administration is cutting off federal student loans to cosmetology schools, potentially saving thousands of aspiring hairstylists and beauticians from taking on debt just to cut hair legally.

Under the proposed “Do No Harm” rule, colleges and trade schools can no longer enroll students using federal loans if graduates’ median debt exceeds their first-year earnings. For cosmetology programs, where students often borrow $15,000 to $20,000 but earn entry-level wages around minimum wage, that means no more federal funding.

The policy shines a spotlight on a licensing system that forces Americans into expensive training programs for jobs that don’t require them. Most states mandate between 1,000 and 2,000 hours of classroom instruction before someone can legally braid hair, apply makeup, or trim bangs. That’s more training than required for emergency medical technicians in many states.

The requirements have little to do with public safety and everything to do with protecting established businesses from competition. States collect licensing fees, cosmetology schools fill seats, and working-class Americans foot the bill — often with loans they’ll spend years repaying on salon wages.

Louisiana requires 1,500 hours of training. Tennessee demands 1,500 hours. California requires 1,600 hours. Arizona, by contrast, eliminated its cosmetology license entirely in 2019. Salons didn’t close. Customers didn’t get hurt. People just went to work.

The Trump administration’s move puts pressure on state legislatures to rethink these barriers. If federal loans won’t cover the training costs, states face a choice: reduce the requirements so people can enter the field without debt, or watch aspiring beauticians either pay out of pocket or give up entirely.

Critics argue the rule hurts students by limiting access to education. But when “education” means borrowing thousands to learn skills you could pick up in weeks on the job, limiting access might be doing students a favor.

Nationwide, occupational licensing affects roughly one in four American workers, up from one in 20 in the 1950s. The Institute for Justice estimates these requirements cost the economy 2.85 million jobs. For lower-income Americans trying to start careers without college degrees, licensing boards have become gatekeepers that keep opportunity just out of reach.

States now have their opening. The federal government won’t subsidize expensive, unnecessary training anymore. Legislatures can either reform their licensing laws or explain to constituents why cutting hair requires more government-mandated training than saving lives.