Hundreds of college programs in California are at risk of losing federal student loan access due to a new federal requirement that mandates graduates earn at least as much as the median worker in the state with only a high school diploma. The earnings benchmark for California is approximately $18 an hour, or $36,000 annually.
A recent analysis indicates that about 10% of nearly 3,000 California higher education programs failed to meet this standard, with many underperforming programs concentrated in fields such as cosmetology, medical assisting, theater, and fine arts. If these programs do not demonstrate improved graduate earnings, students could lose access to federal loans as early as July 1, 2028, though schools have at least two years to meet the requirement.
The requirement stems from the One Big Beautiful Bill Act, signed into law on July 4 of the previous year and taking effect this month. A significant number of the programs that missed the earnings benchmark are operated by for-profit colleges, institutions that have faced scrutiny for student outcomes and tuition costs. However, some public institutions also have programs that did not pass the test, including theater and fine arts programs at several California State University and University of California campuses.
Specifically, over 30 California programs in fine arts, music, theater, film, and photography did not meet the new earnings threshold. In contrast, around 100 similar programs, such as UC Berkeley’s film program and fine arts programs at San Diego City College and the University of Southern California, reported graduates earning over $70,000 four years after graduation.
Officials from institutions like the California Institute of the Arts, where graduates of its fine arts, film, and photography programs earned just under $30,000 annually four years after completing their degrees, have pushed back. They argue that the federal data does not fully capture the trajectory of artistic careers, which may take longer to develop, or that some graduates prioritize creative pursuits over higher-paying jobs. Dean Ranu Mukherjee of CalArts stated it would be difficult to imagine the institute without its undergraduate film or arts programs.
Other educators have also voiced concerns, with Angelica Muro, chair of the visual arts and music department at Cal State Monterey Bay, calling the benchmark "overly broad" and suggesting it undervalues the societal benefits of critical thinking and the cultural significance of the arts.