INDUSTRY NEWS
A proposed rule could have significant operational implications for U.S. spas that rely on licensed massage therapists, estheticians, cosmetologists and other beauty and wellness professionals.
New accountability framework
Published in the federal register on April 20, a Notice of Proposed Rulemaking from the U.S. Department of Education (DOE) would establish a new student tuition and transparency system and earnings accountability framework for postsecondary programs participating in Title IV federal student aid. Programs would be evaluated based on whether graduates’ median earnings exceed a benchmark comparable to earnings of high school graduates. Programs that repeatedly fail the standard could lose eligibility for Federal Direct Student Loans and, in certain cases, Pell Grants. The public comment period closed May 20.
Many massage, skincare and cosmetology programs are clock-hour or certificate programs whose students depend on federal aid to access training. Industry groups warn that if a substantial number of schools lose Title IV eligibility, fewer students may enter the education pipeline, eventually reducing the supply of licensed professionals available to spas, salons and wellness businesses. Beauty and wellness education advocates estimate more than 90 percent of beauty and wellness programs could be affected if the rule is finalized as proposed.
Why it matters to spa employers
For the spa industry, the concern is workforce availability.
Questions around earnings data
While the Federation of State Massage Therapy Boards (FSMTB) has not taken a formal position on the proposed rulemaking, it has compiled and shared concerns raised by accrediting bodies and trade associations within the broader massage therapy, spa and wellness fields. These concerns include questions about whether the proposed earnings test adequately accounts for part-time work, regional wage variation and tipped income, which are common in these professions. FSMTB also relayed industry projections suggesting that a significant share of somatic bodywork, massage therapy and similar programs could fail the proposed threshold, so that massage schools and programs may consider submitting public comments on the rulemaking.
Potential business implications
In an open letter to the DOE, the Professional Beauty Association (PBA) said the organization is “concerned that the proposed framework may unintentionally limit access to education programs that serve as critical entry points into employment and small business ownership.”
Associated Bodywork & Massage Professionals (ABMP) has similarly warned the rule could affect not only schools, but also downstream employers. Its position is that reduced student access may lead to fewer graduates, tighter hiring conditions and longer-term workforce shortages for spas, salons and clinics.
Spa leaders should monitor the rulemaking process, assess local school partnerships and consider how potential changes to graduate supply could affect recruiting, service capacity and long-term staffing plans. ISPA will continue to follow developments and share additional information through appropriate channels, including future editions of Pulse. ▪
“Reduced student access could lead to fewer graduates, tighter hiring conditions and longer-term workforce shortages.”