Rio Grande Valley trade schools flagged for graduates earning less than those with a high school diploma

The U.S. Department of Education flagged 13 vocational schools across the Rio Grande Valley for the first time, noting the low earnings of its graduates and suggesting that the degrees offered at those institutions are not as valuable as students may believe. 

Students applying for federal student aid to pay for higher education will be warned that graduates of the schools they plan to attend earn on average less than those with high school diplomas alone. 

The schools are still eligible to accept federal student aid, and the designation does not impact a student’s ability to borrow money to attend there, either.

The vocational schools flagged are for-profit businesses charging between $10,000 to $20,000 in tuition for career training that ranges from an associate’s degree in business administration to a medical assistant. Students often borrow student loans to pay for such education. 

For example, at the Advanced Barber College and Hair Design in Weslaco, 80% of the students received federal Pell grants tp pay for tuition during the 2022-2023 academic year. The cost for the barber college program’s tuition is $13,510, according to the private college’s website. 

The Advanced Barber College and Hair Design school had the starkest difference between what its graduates earned four years after graduation and the average earnings of a high school graduate. When adjusted for inflation, the barber school graduate earns $16,451 compared to $35,055. 

But a graduate from the South Texas Vocational Technical Institute in Brownsville earned, on average, $33,387 when adjusted for inflation – still below the average for an individual with only a high school diploma. 

Eighty-two percent of South Texas Vocational Technical Institute students in Brownsville used federal Pell grants and student loans to pay for their education during the 2022-2023 academic year.  

The tuition cost for an associate’s degree in medical billing and coding was $24,480 in 2025, whereas an automotive service technician certificate would cost $22,262, according to its website. 

Dozens of trade schools were flagged across Texas and thousands nationwide.

“Not only will this new FAFSA feature make public earnings data more accessible but it will empower prospective students to make data-driven decisions before they are saddled with debt,” said U.S. Secretary of Education Linda McMahon said in a press release.

None of the vocational schools responded to a request to comment for this news story.