On October 31, 2023, the U.S Department of Education (DOE) released its final rule on financial responsibility. Administrative Capability, Certification Procedures, Ability to Benefit (ATB). The new rule will have a substantial impact on the educational landscape within our massage therapy profession, most significantly the elimination of the 150% rule.

WHAT IS THE 150% RULE?

The current rule allows for massage schools and programs to provide clock hours up to 150% above the minimum requirement for licensure, without having any negative impact on the student’s eligibility to receive Title IV Federal Financial Aid.

For example, in a state that only requires 500 clock hours of education to obtain a massage therapy license, schools have been allowed to offer 750 clock hours and still receive federal funding.

Each state establishes their own licensure requirements and a minimum number of clock hours for massage therapy before students can apply for their state license. Some community colleges and career-oriented programs have designed courses that go beyond the state’s minimum clock hours. To allow for flexibility for these programs, the Department of Education has allowed programs to provide up to 150% of a state’s minimum clock hours requirement and still be eligible for federal funding aid.

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THE NEW RULE ELIMINATES THE 150% RULE

The new rule would eliminate the 150% rule, requiring all clock-hour programs to teach only the state-mandated minimum hours. Title IV schools operating in a state that exceeds 600 hours and utilizing the 150% rule will likely have to make adjustments to their education programs to stay eligible for federal funding. For states where the minimum is under 600 hours, massage therapy schools and programs would be classified as “short-term programs”, making them only eligible for direct loans instead of Title IV Federal Financial Aid.

HOW DOES THE NEW RULE AFFECT MASSAGE SCHOOLS, STUDENTS, AND THE PROFESSION?

Any Title IV massage school program that exceeds their state’s minimum number of hours would no longer receive federal financial funding for being out of compliance with the eligibility requirements. This means that schools would have to redesign and recertify their educational programs (a time-consuming process), or students would have to pay for the entire program on their own and/or through direct loans.

These changes could greatly reduce the supply of massage therapy students entering the workforce. The U.S. Bureau of Labor Statistics projects an 18% growth of massage therapists from 2022- 2032 (which is must faster than the average growth across all occupations).

This rule could potentially slowdown that growth rate significantly.

View the full regulatory package here.

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