California College Programs Under Scrutiny
Recently revealed federal data has put hundreds of college programs in California under a spotlight. It turns out that many graduates earn less than individuals who hold only a high school diploma. This situation places these institutions in jeopardy of losing access to federal student loans unless they demonstrate better performance.
Starting this month, new federal regulations mandate that colleges and certificate programs must show that their graduates make more than the median wage for high school diploma holders in their respective states.
In California, that benchmark is approximately $18 per hour, translating to around $36,000 annually.
A study by Michael Itzkowitz of the HEA group found that about 90% of nearly 3,000 higher education programs within the state meet this benchmark.
However, around 300 programs fall short. Many of these programs focus on fields like cosmetology, medical assistance, theater, and fine arts.
If these programs keep underperforming in regards to revenue benchmarks, students might lose access to federal loans starting July 1, 2028. Luckily for them, schools have at least two years to make necessary improvements.
Notably, many of the struggling programs are linked to for-profit colleges, which have faced criticism for years regarding student outcomes and high tuition fees.
Public institutions aren’t exempt either. Theater and fine arts programs at eight California State University campuses and three University of California campuses are also being scrutinized.
Within California, upwards of 30 programs—covering disciplines like art, music, theater, film, and photography—failed the recent revenue criteria.
On the brighter side, approximately 100 similar programs, such as the film program at the University of California, Berkeley, along with fine arts programs at San Diego City College and the University of Southern California, have successfully met federal standards, with graduates reporting earnings exceeding $70,000 within four years post-graduation.
One institution garnering attention is California College of the Arts, located near Santa Clarita. Graduates from its art, film, and photography programs earned just shy of $30,000 annually four years after graduation, according to federal data.
Officials from the school argue that the federal data doesn’t accurately reflect how careers in the arts may take time to evolve and that some graduates consciously opt for less lucrative but creatively fulfilling paths.
“It’s hard to envision CalArts without its undergraduate film and arts programs,” remarked Dean Ranu Mukherjee. “That’s part of our identity.”
Others in academia are also voicing concerns. Angelica Muro, the dean of visual arts and music at California State University Monterey Bay, expressed in an email that the new standard is too broad. She argues it undermines the social contributions of critical thinking and the unique cultural value that the arts provide.
This requirement arises from the One Big Beautiful Bill Act, which was signed into law last July and took effect this month.
If these underperforming programs cannot demonstrate that their graduates earn at least $36,000 a year, students could face losing access to federal loans by 2028.
