WHAT HAPPEN IF TITLE IV FUNDING GOES AWAY

If Title IV funding were to go away, schools—would need to make significant adjustments to compensate for the loss of federal financial aid. Here is what they would likely do:

Find Alternative Funding Sources

• State and Local Funding – Schools might lobby for increased state funding to fill the gap.
• Private Scholarships & Grants – Institutions could expand partnerships with private organizations, corporations, and foundations to provide more scholarships.
• Endowments & Donations – Universities with large endowments might use more funds to support students, while others would increase fundraising efforts.

Shift to Private Student Loans

• Without federal loans, students would have to rely on private loans, which typically have higher interest rates and fewer protections.
• Schools may partner with private lenders to create new financing options.

Adjust Tuition & Aid Policies

• Lower Tuition or Offer Discounts – Some schools may lower tuition or increase institutional aid to remain competitive.
• Income-Share Agreements (ISAs) – More schools might adopt ISAs, where students repay a percentage of future earnings instead of taking loans.

Reduce Operating Cost

• Cosmetology/Barber Schools might cut administrative expenses, reduce faculty, or scale back programs that are not financially sustainable.
• Some institutions, especially smaller or less financially stable ones, could merge with others or close altogether.

Increase Work-Based Learning & Apprenticeships

• Schools could expand work-study alternatives, corporate-sponsored apprenticeships, and tuition reimbursement programs to help students afford education without federal aid.

Relay More On Online & Alternative Education Models

• Institutions may shift to more online programs, which are often cheaper to run.
• Community colleges and vocational schools may see a rise in enrollment if traditional four-year institutions become unaffordable for many students.

Impact on Students

• Higher Barriers to Affordability – Many students may struggle to afford cosmetology/barber school, leading to lower enrollment rates.
• Greater Dependence on Private Loans – Without federal protections, students could face riskier loan terms.
• More Selective Admissions – Schools might enroll fewer low-income students or increase merit-based aid instead of need-based aid.

In short, losing Title IV funding would force major structural changes in higher education, making cosmetology/barber schools less accessible—especially for low-income students—unless alternative funding systems were put in place.