# #437 - Private Beauty School Profits + Why Loans Are Being Defunded

Page: https://stenobird.com/podcast/thriving-stylist-podcast-569639/437-private-beauty-school-profits-why-loans-are-being-defunded
Text version: https://stenobird.com/podcast/thriving-stylist-podcast-569639/437-private-beauty-school-profits-why-loans-are-being-defunded.md
Podcast: [Thriving Stylist Podcast](https://stenobird.com/podcast/thriving-stylist-podcast-569639)
Published: 2026-05-11T08:30:00+00:00
Episode link: https://thrivingstylist.com/podcast/
Audio file: https://traffic.libsyn.com/secure/thrivingstylist/437__Private_Beauty_School_Profits_Why_Loans_Are_Being_Defunded.mp3?dest-id=609812
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JSON: https://stenobird.com/v1/public/podcasts/thriving-stylist-podcast-569639/episodes/437-private-beauty-school-profits-why-loans-are-being-defunded
Duration seconds: 1753

## Resource

Have you ever looked at a viral post and felt like something was missing? This week, a social media campaign from a collection of private beauty schools has been making the rounds, warning that the industry is at risk of collapse due to federal loan defunding. On its face, it sounds terrifying, but once you peel back the layers, you realize the situation is much more complex than just "saving" the industry. I was asked about my opinion on the post and situation, so I wanted to do an investigative-style episode that digs into the financial mechanics of for-profit beauty schools and the reality of the July 2025 Big, Beautiful Bill. I'm breaking down why the shift in oversight to the Treasury Department is happening, the staggering default rates that are putting NACCAS accreditation at risk, why cosmetology has landed in the crosshairs of a new federal earnings test, and much more. If you've been confused by the buzz or worried about the future of beauty education, this episode is your clarity and context. Let's look at the data, address the fragility of the current model, and talk about how we can come together to build something better! If you need a tool to keep your numbers (and business!) organized, you'll want to check out our Wealthiest Year Yet Planner . Join the waitlist now at www.thrivingstylist.com/wealthiestyearyet/ . The beauty industry is changing faster than ever. What worked in 2022 or even 2024 won't cut it in 2026, so are you ready? Grab our FREE 2026 TREND REPORT, The 2026 Must-Know Business Realities, Strategies & Trends for Stylists and Salon Owners now at https://thrivingstylist.com/mustknow/ . Thriving Leadership Method hands salon owners a step-by-step strategy to implement an irresistible culture and create a powerful growth path…all while settin…

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