Aveda Institutes GE Legislation Awareness – Fall 2016

Aveda Institutes GE Legislation Awareness – Fall 2016

Articles, Blog , , 1 Comment


Did you know in early 2017,
federal Gainful Employment legislation, or GE, could
force as many as one-third of all cosmetology schools,
including some Aveda institutes to close despite the demand
for qualified employees for the salon and spa industry,
a vibrant and growing component of the US economy? It’s true. GE is a regulation requiring
educational programs offered by for-profit career
colleges and less than two-year certificate
programs offered by community colleges to better prepare
students for gainful employment or risk losing access
for Federal Student Aid. The regulation measures
debt-to-income ratios, like graduates annual
loan payment does not exceed 8% of earnings. Sounds like a good idea, right? However, the
Department of Education uses Social Security
Administration Data to determine the annual
earnings used in the student debt-to-income ratio. The salon and spa
industry is known to be plagued by a large
segment of gray market operators who do not properly
report to the IRS as employers or report
workers as employees. Failure to report the wages and
tips of the licensed graduates creates chronic systemic
underreporting of wage and tip income for graduates
and will lead to the loss of good
cosmetology schools that train workers demanded by
the compliant employer salons and spas, like the
Aveda salons and spas. 60 accredited state
licensed Aveda institutes are located across 30 states. Our network graduates an average
of 7,000 students per year with an average
licensure rate of 93.5% and average placement
rate of 74.2%. By maintaining the highest level
of accomplished professional instructors using engaging
curriculum and the newest techniques, Aveda
Institute students gain confidence
in guest services and additional business
building skills. Aveda’s mission-driven
commitment to environmental responsibility
permeates student instruction from social and
environmental responsibility, to the Aveda products
exclusively utilized by the institutes. We need the support of
all Aveda salons and spas. Act now by calling
the Aveda Institute schools to verify employment
of graduated students. It’s critical that
Aveda institutes be able to track alumni. Be compliant in reporting wage
and tip income of employees, inform and educate your
team on the benefits of claiming total
income, like the ability to qualify for a mortgage or
other financing due to accurate income reporting. The length of in-salon
training programs for new hires can delay new stylist
earning a livable wage, so limit or consider
paid training. Employee titles and
roles matter too. Consider licensing requirements
in the job descriptions, like guest relations technical
adviser and guest relations representatives. The certified professional
must have a title and duties that allow her to
count as placed in the role requiring the
license for which they attended the school. Contact your
congressional leaders and let them know how gainful
employment could force schools to close and jeopardize
your ability to hire qualified graduates and
impact your success. We need your help to protect
the future of the cosmetology industry and ensure you’ll have
a pool of qualified, trained graduates to hire from. For more information,
and to take action now, please visit aveda.edu/ge.

One thought on “Aveda Institutes GE Legislation Awareness – Fall 2016

  • Hilary Sell Post author

    I am torn whether I like this video or not. I am a graduate of aveda, but could never get hired due to my birth defect. not even at the school.

Leave a Reply

Your email address will not be published. Required fields are marked *