Save the Date! Webinar on the New Title IV Borrower Defense to Repayment Rule & Financial Responsibility Rule Changes
 
On Monday, October 14, 2019 at 11 a.m. PT/1 p.m. CT/2 p.m. ET, AACS will present a free, informative webinar designed specifically for AACS members. The webinar will provide information regarding transition from the current Borrower Defense to Repayment Rule (effective for federal loans disbursed between 7-1-17 and 6-30-2020) to the new rule effective for loans first disbursed as of July 1, 2020. 
 
See Unofficial Version - 2019 BDR Rule (the official Final Rule will be published in the near future in the Federal Register).
 
The webinar will focus specifically on areas of the new rule of most relevance to cosmetology schools, including: the school role in the claims process and preparing for same, new rules regarding events or conditions that may lead to a Letter of Credit, reporting obligations, timing and substance of changes to the financial responsibility composite score definitions that impact treatment of leases and long-term debt, and the use of pre-dispute arbitration agreements and class action waivers.
 
Don’t miss this opportunity to stay current with this important federal rule. As a reminder, until the effective date of the new rule, the 2016 BDR Rule, including reporting requirements, remains in effect. Register here

Special Member Benefit from OfficeMax

We have partnered with OfficeMax to provide AACS members a special benefit. Businesses using the Office Depot discount program see significant savings. Take advantage of the program today and you could save thousands of dollars per year! Click her to learn more.

Milady, a leading provider of beauty and wellness education solutions, and AACS presented the 2019 N.F. Cimaglia Award to Anthony Civitano of Long Island, NY, a dedicated contributor to the beauty and wellness industry at the 2019 Annual Convention & Expo held two weeks ago in Las Vegas. 

The N.F. Cimaglia Award was established by the AACS Past President’s Club in 1975 to recognize individuals who have demonstrated continuous outstanding service in the beauty education industry. To be eligible for the award, candidates must have served as a board member of AACS or its former generations, been a past AACS president or have at least 25 continuous years in the industry.

Please take two minutes to complete this survey so we can continue to provide an experience that meets your needs at our Annual Convention & Expo. By participating in the survey, one lucky participants will win a free registration to the 2020 AACS Annual Convention & Expo. Please respond by Monday, October 14. Thank you!

Didn’t grab one of these fabulous shirts before leaving Vegas? You can still purchase them by contacting AACS here to request an order form. All proceeds goes towards supporting AACS Government Relations Committee.

Cosmetology students across the U.S. and Canada can now apply for the 2020 Great Scholarship Program from Great Clips, Inc. The Program offers tuition reimbursement or cosmetology toolkits to students pursuing education in cosmetology, totaling over $100,000 in support.  

Eligible cosmetology students can apply by the January 31, 2020 deadline by clicking here. Individual awards are valued between $250 and $1,500. Program applications are evaluated and recipients are selected by a regional committee comprised of local Great Clips salon owners and market leaders selected by Sponsor to be announced on or about March 31, 2020. Terms and conditions apply.

Meet the Horst Rechelbacher Sustainable Oncology Spa Solution Winners

Celebrating the possibilities that arise when beauty and wellness converge, the Horst Rechelbacher Foundation is awarding five Horst Rechelbacher Sustainable Oncology Spa Solution scholarships to licensed estheticians. Each winner receives a $2,000 award toward an Oncology Spa Solutions education course. The Summer 2019 winners are as follows:

Yvette Bosch, Santee Calif.
Licensed esthetician, certified yoga career and humanitarian at heart, Yvette wants to use oncology skincare education to help others relax, unwind and uncharged. Watching her friend Ruth lose her battle with breast cancer, Yvette was sorry she lacked the credentials to provide a soothing facial. Education will let Yvette help others struggling with cancer. In fact, her application mood board noted a Nelson Mandela quote, “Education is the most powerful weapon you can use to change the world.” Check out her mood board and essay here. 

Jessica Kennedy, Black Mountain, N.C.
A crystal reiki master, Jessica is also the lead esthetician at Fresh Aire Spa. While she values esthetics ability to improve skin’s appearance, Jessica’s passion is skin health and healing through safe, holistic products and treatments. Jessica describes the treatment room as a “healing room” where she can care for a guest’s mind, body and soul. Upon completing her oncology spa education, she looks forward to volunteering at a local hospital. Watch her video here. 

Paula Key, Tyler, Texas
People in Paula’s life served as the “why” inspiring her to choose esthetics for her “second-act” career. “I want to deliver a soothing touch in a safe, emotional space that helps clients relax and recover,” says Paula who has watched many love ones experience cancer. She looks forward to using her oncology education training to help people feel normal during a trying time, providing a mindful, safe service that ultimately enhances her clients’ quality of life. Watch her video here.

Christela Louis-Jeune, Belle Glade, Fla.
Massage therapist, nail professional, and literally rapping to her own beat . . . Christela rapped in her application video, “I’m a licensed esthetician, not a professional magician.” Drawing on inspiration gleaned from sources ranging from the U.S. Marines to a psychic, Christela has curated a career that blends her passion for skincare, nails and music. And she wields a pretty mean swing of the baseball bat. Watch her video here. 

LaSonia McGee, Milwaukee, Wisc.
Cancer education is personal for LaSonia. After being diagnosed with breast cancer in 2015, LaSonia says she heard a “wake-up call” to start living with purpose.  In 2018 she founded a mobile spa and says that’s where the learning really began. Upon completing the oncology education program, LaSonia looks forward to sharing her knowledge with others. She’s currently enrolled at the Institute of Beauty and Wellness in Milwaukee and looks forward to becoming an esthetics instructor. Check out her essay and mood board here. 

The Horst Rechelbacher Foundation established the Oncology Spa Solutions® training in the U.S. in 2013 and has since changed the lives of more than 4,500 students and clients. “The success of this training confirms that as humans we have a desire to care for others. This education will help estheticians feel more confident serving and caring for those who need care the most,” said Nicole Rechelbacher.

Federal Updates

U.S. Department of Education

October 1, 2019 – The 2020-21 FAFSA cycle began on October 1, 2019 and is available until June 30, 2021. The final versions of the 2020-21 Free Application for Federal Student Aid (FAFSA®) form, FAFSA on the Web Worksheet, and Student Aid Eligibility Worksheet for Question 23 are now available. 

October 2, 2019 – The Department published a notice in the Federal Register requesting student nominees for appointment to serve on the National Advisory Committee on Institutional Quality and Integrity (NACIQI). Nominations must be received no later than Friday, October 25, 2019. 

October 3, 2019 – Federal Student Aid released a series of updates to the quarterly application, disbursement, and portfolio reports on its FSA Data Center to include data through June 30, 2019.

Final versions of the English and Spanish versions of the 2020-21 Student Aid Report (SAR) and SAR Acknowledgment are now available in PDF.

December 2, 2019 – The Federal Student Aid’s New Financial Aid Administrators Pre-Conference Training will take place on December 2, 2019 at the Reno-Sparks Convention Center.

Looking Ahead – 2019 FSA Training Conference. The Federal Student Aid Office has opened registration for the 2019 FSA Training Conference scheduled for December 3 to 6 in Reno, Nevada. The FSA Training Conference is training provided for financial aid professionals by the government for those institutions receiving Title IV funds and is the largest training program in the United States serving the financial aid community. In 2018 more than 2,000 unique schools registered for the conference. Registration is free.

U.S. Congress – Newly Introduced Legislation of Note

H.R. 4615 – To amend the Higher Education Act of 1965 to require an institution of higher education to submit a teach-out plan under certain circumstances, and for other purposes.

a.       Status: Referred to the House Committee on Education and Labor, 10/04/19

b.      Sponsor: Rep. Donna Shalala (D-FL) 5 Cosponsors

H.R. 4609 – To amend the Higher Education Act of 1965 to include a full-time job with a veterans or military service organization as a public service job eligible for public service loan forgiveness.

a.       Status: Referred to the House Committee on Education and Labor, 10/04/19

b.      Sponsor: Rep. Mike Levin (D-CA) 1 Cosponsor  

H.R. 4608 – To amend the Higher Education Act of 1965 to create the Pell Plus program.

a.       Status: Referred to the House Committee on Education and Labor, 10/04/19

b.      Sponsor: Rep. Derek Kilmer (D-WA) 2 Cosponsors 

H.R. 4607 – To amend the Higher Education Act of 1965 to include certain employment as a health care practitioner as eligible for public service loan forgiveness, and for other purposes.

a.       Status: Referred to the House Committee on Education and Labor, 10/04/19

b.      Sponsor: Rep. Josh Harder (D-CA) 4 Cosponsors

H.R. 4603 – To amend the Higher Education Act of 1965 to provide for Federal student loan reform.

a.       Status: Referred to the House Committee on Education and Labor, 10/04/19

b.      Sponsor: Rep. Salud Carbajal (D-CA) 1 Cosponsor

H.R. 4596 – To improve service to students and other participants in the Federal student financial assistance programs, to establish the Office of the Borrower Advocate to replace the Student Loan Ombudsman, and for other purposes.

a.       Status: Referred to the House Committee on Education and Labor, 10/01/19

b.      Sponsor: Rep. Ilhan Omar (D-MN) 1 Cosponsor

H.R. 4590 – To amend the Higher Education Act of 1965 to terminate capitalization of interest after forbearance and certain deferment periods.

a.       Status: Referred to the House Committee on Education and Labor, 10/01/19

b.      Sponsor: Rep. Danny Davis (D-IL) 2 Cosponsors  

H.R. 4587 – To amend the Higher Education Act of 1965 to require certain institutions of higher education to provide notice of tuition levels for students.

a.       Status: Referred to the House Committee on Education and Labor, 10/01/19

b.      Sponsor: Rep. Matt Cartwright (D-PA) 10 Cosponsors  

H.R. 4584 – To amend the Higher Education Act of 1965 to repeal the suspension of eligibility for assistance under title IV due to drug-related offenses.

a.       Status: Referred to the House Committee on Education and Labor, 10/01/19

b.       Sponsor: Rep. Karen Bass (D-CA) 35 Cosponsors

State Updates

News from California, Texas and Florida including a Must-Attend Texas Summit for Texas Cosmetology Schools

The first full week of October finds only six state legislatures actively meeting.  AACS will however continue to keep updated on the latest state legislative and regulatory developments of interest to your school.

In California, Governor Gavin Newsom (D) signed AB 1340 and AB 5 into law last week.  Both measures will become effective January 1, 2020. 

AB 1340 was introduced in February as a state gainful employment bill.  While the enacted measure does not include a debt-to-earning metric leading to potential enrollment limitations, it still requires cosmetology schools and other institutions regulated by the Bureau for Private Postsecondary Education (BPPE) to report individual identifying information, the program the graduate was enrolled in, and specified student loan debt information. The Act requires the bureau to match the data reported by institutions pursuant to this provision with wage data from the Employment Development Department, as specified. It also requires the bureau to post online “relevant program-level and institution-level statistics presented line in terms of easily understood labor market measures and consistent with all pertinent state and federal privacy laws, regarding the earnings levels of graduates and the student debt information reported.” 

AB 5 impacts booth renters and other independent contractors in the Golden State.  According to Fred Jones of the Professional Beauty Federation of California, “AB 5 essentially renders illegal most forms of independent contractor relationships with the exception of those few sectors that received an exemption in that legislation.  Our industry did, in fact, earn a limited exception in that bill, but it is narrowly tailored.  It won’t make all booth renters in this state happy and could prove to be a model for other states to follow.” 

As enacted, the measure allows specified beauty industry professionals – cosmetologists, barbers, electrologists, estheticians, natural hair braiders, and manicurists (until January 1, 2022) – to be an independent contractor if the following criteria are met: 

“(I) Sets their own rates for services performed, provided the rate is equal to or greater than two times the minimum wages for hours worked and is paid directly by their clients.

(II) Sets their own hours of work and has sole discretion to decide which clients from who they will provide services.

(III) Has their own book of business and schedules their own appointments.

(IV) Maintains their own business license for the services offered to clients.

(V) If the individual is performing services at the location of the hiring entity, then the individual issues a Form 1099 to the salon or business owner from which they rent their business space.

(VI)  This subdivision shall become inoperative, with respect licensed manicurists, on January 1, 2022.” 

On the regulatory front, the Texas Department of Licensing and Regulation will be holding a Cosmetology Program Summit in Austin on Monday, October 21 at 1:00 p.m. (CT).  Schools in the Lone Star state will want to attend as curriculum options to implement HB 2847 – reducing the course of instruction for cosmetology licensure from 1,500 to 1,000 hours – will be discussed.  A separate Barbering Program Summit will be held the same day beginning at 9 a.m. (CT).  The Summits will be broadcast live on TDLR’s YouTube channel.

Please see the links below for additional information:

Meeting Notices
Barbering Program Summit Agenda
Cosmetology Program Summit Agenda

The text of the bills mentioned in this update can be found in AACS’ Bill Tracking Portal

Please do not hesitate to contact me at by email or by phone at 202-491-5254 with comments or questions. 

Bill Introduction 

Florida S474
Senator Ben Albritton (R), who represents the Florida Keys, introduced the “Occupational Freedom and Opportunity Act” Monday.  The bill would reduce the course of instruction for barbering from 1,200 to 900 hours; allow for early licensure testing of barbers at 600 hours; provide for 1-to-1 licensure reciprocity of barbers; deregulate hair braiding, hair wrapping, body wrapping, the application of polish to fingernails and toenails, and makeup application; provide for 1-to1 licensure reciprocity for cosmetologists upon completion of a two-hour course on HIV/AIDS; and reduce the biennial CEU requirement for licensure renewal from 16 to 10 hours.  The measure would also severely reduce the course of instruction required for specialist licensure: nail specialists from 240 to 150 hours; facial specialists from 260 to 165 hours, and; full specialists (combining both skin and nails) from 500 to 300 hours.

AACS is working with Plus Communications to better position AACS members to achieve our legislative and regulatory objectives at the federal level, ensuring lawmakers don’t pass misguided legislation that could severely harm our industry.

We need your help to tell the industry’s compelling story and save our industry from the negative consequences of harmful legislation. You can help by donating to help us fund this important public relations campaign, and by sharing stories and testimonials.

To submit a donation, please click here.
To submit a story, please click here.