Hundreds of college programs across California are facing fresh pressure after newly released federal data showed that many of their graduates earn less than workers whose education ended with a high school diploma. Programs that do not improve could eventually lose access to federal student loans.
The scrutiny stems from a new federal rule that took effect this month, requiring colleges, universities and certificate programs to show that graduates earn at least as much as the median high school-only worker in their state.
For California programs, that earnings threshold is about $18 per hour, or approximately $36,000 a year.
Michael Itzkowitz, president of the HEA Group, analyzed the data and found that roughly 90% of nearly 3,000 higher education programs in California cleared the federal benchmark.
Still, about 300 programs fell short, with many of the lowest-performing offerings clustered in areas including cosmetology, medical assisting, theater and fine arts.
Students enrolled in programs that continue to miss the earnings standard could lose access to federal loans as soon as July 1, 2028. Colleges will have at least two years to raise graduate earnings before that penalty could take effect.
A significant share of the programs that failed to meet the benchmark are operated by for-profit colleges, a sector that has long drawn scrutiny over tuition levels and whether students see strong returns after leaving school.
Public colleges were not exempt from the findings. Theater and fine arts programs at eight California State University campuses and three University of California campuses were also flagged under the federal review.
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.
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