Hundreds of California college programs are facing renewed scrutiny after federal data revealed that many graduates earn less than those with only a high school diploma, placing these schools at risk of losing federal student loan access unless their outcomes improve.

A new federal requirement that took effect this month requires colleges, universities and certificate programs to prove graduates earn at least as much as the median worker in their state with only a high school diploma.Getty Images

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Many of the underperforming programs are run by for-profit colleges, institutions that have already been under the microscope for years over concerns of student outcomes and high tuition costs.

Public institutions also made the list, with theater and fine arts programs at eight California State University campuses and three University of California campuses coming under fire.

Over 30 California programs in fine arts, music, theater, film, and photography failed to pass the new earnings test.

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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.

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“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.

(*) Full article: https://nypost.com/2026/07/16/us-news/humiliation-for-hundreds-of-california-colleges-whose-alumni-earn-less-than-high-school-grads/