A significant number of college programs across California are under intensified review following the release of federal data. This information shows that many graduates from these programs are earning salaries lower than those of individuals with only a high school education. As a result, these schools could face the potential loss of federal student loan eligibility unless they can demonstrate improved graduate outcomes.
New federal regulations that became effective this month mandate that colleges, universities, and certificate programs must provide evidence that their graduates earn wages at least equivalent to the median earnings of high school diploma holders in their state.
In the state of California, this wage benchmark is set at approximately $18 per hour, translating to an annual income of about $36,000.
Research conducted by Michael Itzkowitz, the president of the HEA Group, revealed that nearly 90% of almost 3,000 higher education programs in California are meeting this wage standard.
However, around 300 programs fall short of this requirement, with a notable number in specific fields such as cosmetology, medical assisting, theater, and fine arts.
If these programs continue to fall short of the earnings benchmark, students could lose access to federal loans as early as July 1, 2028. Schools, however, still have at least two years to boost graduate earnings.
Many of the underperforming programs are run by for-profit colleges, institutions that have already been under the microscope for years over concerns of student outcomes and high tuition costs.
Public institutions also made the list, with theater and fine arts programs at eight California State University campuses and three University of California campuses coming under fire.
Over 30 California programs in fine arts, music, theater, film, and photography failed to pass the new earnings test.
By comparison, about 100 similar programs cleared the federal bar, such as UC Berkeley’s film program and fine arts programs at San Diego City College and the University of Southern California, where graduates reported earning over $70,000 four years after graduation.
Among the schools drawing attention is the California Institute of the Arts near Santa Clarita. Federal data shows graduates of its fine arts, film and photography programs earned just under $30,000 a year four years after completing their degrees.
School officials countered that the federal data fails to capture how artistic careers often take longer to flourish, or that some graduates deliberately choose creative paths over higher-paying corporate roles.
“It’s hard to imagine CalArts without an undergraduate film or arts program,” Dean Ranu Mukherjee told CalMatters. “It’s in our name.”
Other educators have also pushed back.
“It’s an overly broad benchmark,” Angelica Muro, chair of the visual arts and music department at Cal State Monterey Bay, wrote in an email to CalMatters, arguing the rule “undercuts the societal benefits of critical thinking and the immense sociocultural value held within the arts.”
The requirement stems from the One Big Beautiful Bill Act, which was signed into law on July 4 last year and took effect this month.
Unless these struggling programs can prove their graduates earn at least $36,000 a year, students could start losing access to federal loans in 2028.