Increasing Diversity in Cosmetology

Increasing Access and Diversity in Cosmetology Training

If you’re trying to find a new skirt, you’d be shocked if you could only find stores selling pants. And yet, that’s so often the case when it comes to the beauty industry. From darker shades being vastly underrepresented in foundation, to many schools not teaching students how to cut and style all hair types, leading to a large portion of the population struggling to have their needs met — the need for more diversity is apparent, especially when it comes to cosmetology training.

Lack of diversity in the cosmetology industry

Take cosmetology school, for instance. Because standards and qualifications are set at the state level, only 19 states require training specifically for natural hair — still others have no requisites for teaching students techniques such as braiding, twisting, and locking. One type of hair is consistently emphasized, despite it being only a portion of the hair types a stylist can encounter. One survey found that “70% of Asian and Black women felt that their beauty needs weren’t met by high-street brands.” To fix this, it’s important to have a diverse array of voices in every aspect of the beauty industry, who can point out where things are lacking and help broaden and strengthen the methods and skills being taught.

“There are so many untapped opportunities because people [of colour] are systematically ignored from hiring, education and networking. You need to ensure people feel like they can correct you,” says Maddie Saunders in MarketingWeek. “Your workforce needs to reflect your customer base and if you want all women to wear your products then you have to have all women in the boardroom, all women on the shop floor, all women in the lab. That’s how you get those diverse ranges out.”

More representation is needed in every aspect of the cosmetology industry — but how do we get there?

Cosmetology Training

Increasing access to cosmetology training

One clear way to broaden diversity in cosmetology is to open the doors which will allow more people into the industry, such as attending a cosmetology school. All too often people from every walk of life have these doors kept closed on them — their schedule may not be flexible enough to allow them to also attend a full-time program, or the price of tuition may be too steep with limited alternative payment options. And if financing is available for the latter hurdle, it may be heavily biased toward one demographic. Many traditional lenders use traditional credit scoring systems when evaluating applicants, which has a disparately negative impact on communities of color. Despite this, it’s still widely used.

That’s why Climb, rather than only using traditional approaches to underwriting, instead also employs a Model Management System to power our student lending credit model and further enhance accuracy and fairness by reducing the impact of some credit bureau data points known to correlate with race, gender, and ethnicity. We also place a higher emphasis on a debt-to-future-income ratio, based on the outcomes and track record of career-training programs like cosmetology school. And with a wide variety of payment options — from pay-as-you-go plans, to 0%-interest loans, to standard loans — we’re able to help make sure there are payment options that work for both the school and the student.

Being able to provide more options to prospective students is key when it comes to increasing access to an education program. The more opportunities you can provide, the more you’ll see talented, passionate students enrolling in your school. And with more voices and new talent, the more we’ll see the landscape of the beauty industry change for the better.

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What to Expect: Realistic Outcomes

Climb’s Comprehensive Access Solution can offer a strategic balance of increased enrollments and upfront cashflows compared to traditional lenders. While no financing solution guarantees 100% collection, our data-driven approach maximizes both upfront cash and long-term repayment rates.

Typical Partner Results:

  • 15-30% of students qualify for Climb Loans with upfront tuition delivered to the school shortly after course start
  • 45-60% of students qualify for 0% APR* payment plans
  • A blended ~$0.70 collected per $1.00 of tuition across your entire student population.**

**Results vary by school and student demographics. This represents typical performance ranges and should not be considered a guarantee of your specific outcomes.

The bottom line: CAS is designed to maximize your net tuition recovery while eliminating the administrative headaches of student financing.

Maximizing Your Results

Pro Tip: Schools that require student deposits and set up automatic payments during enrollment see significantly better repayment performance across all financing options. These simple steps can meaningfully improve your outcomes.

FAQs

We use a comprehensive, AI-driven assessment that goes beyond traditional FICO scores to better serve career training students:

  • Climb Credit Score: Over 150 data points specifically designed for vocational students
  • Debt-to-Income Ratio: Reliable predictor of payment performance
  • FICO Score: Used primarily for interest rate assignment

Key advantages of our approach:

  • Soft credit pull until loan funding (no credit impact during application)
  • The majority of students receive instant decisions
  • Students can apply with co-borrowers directly in the application
  • More accurate placement into appropriate financing products

We use a comprehensive, AI-driven assessment that goes beyond traditional FICO scores to better serve career training students:

  • Climb Credit Score: Over 150 data points specifically designed for vocational students
  • Debt-to-Income Ratio: Reliable predictor of payment performance
  • FICO Score: Used primarily for interest rate assignment

Key advantages of our approach:

  • Soft credit pull until loan funding (no credit impact during application)
  • The majority of students receive instant decisions
  • Students can apply with co-borrowers directly in the application
  • More accurate placement into appropriate financing products

Students are placed into funding brackets (Elite, Standard, Enhanced) based on our AI assessment. Higher-credit students generate higher upfront payments to your school, while students with limited credit are seamlessly directed to our 0% Payment Plan.

These brackets are established using data from over $1 billion in career training loan originations and may be adjusted periodically based on updated repayment trends.

Important note: Regardless of which bracket a student falls into, they are considered fully paid by your school once funded. The student’s repayment obligation exists exclusively between Climb and the student.

Elite Access not available for Computer Science programs. Upfront percentages vary by industry and loan terms.

Once Climb disburses upfront funding for a student loan, that student is considered fully paid by your school. You will not receive any additional payments for that student—the single upfront payment is complete and final.

From that point forward, the student’s repayment obligation exists exclusively between Climb and the student. Your school has zero liability if the student defaults, and you keep the full upfront payment regardless of the student’s future payment performance.

They’re automatically offered our 0% Interest Payment Plan, ensuring no student is turned away while maintaining steady monthly cash flow for your school.

Higher-credit students generate larger upfront payments (75-100% of tuition), while students with limited credit use our 0% APR* Payment Plan for consistent monthly revenue. Both options are risk-free for your school

Absolutely. Climb complements existing payment options like scholarships, employer-sponsored programs, and internal financing.

Absolutely. Climb complements existing payment options like scholarships, employer-sponsored programs, and internal financing.

Typically, within 5-10 business days after your partnership agreement is signed.

Comprehensive onboarding webinar, continuous partner support via AI-assisted chat and live email—and real-time borrower assistance with our live-chat-available student success team.

No. Climb fully manages the administrative responsibilities—your team simply monitors your school’s performance via our intuitive School Portal.

Your school is fully protected either way. For Climb Loans, you keep the entire upfront payment with zero liability. For Payment Plans, you only receive what students actually pay, with no risk to your school.