Federal Government cuts funding to Marinello Beauty School

A national beauty school company is under investigation for financial aid fraud. KION found out the case is tied to a school on the Central Coast. This week the Department of Education said it’s cutting funding to Marinello School of Beauty, a for-profit program. KION learned why students said they’re left in limbo.

On Monday, The U.S. Department of Education said it sent letters to 23 Marinello Beauty Schools, including one in Seaside. The department said the schools are failing to meet financial aid requirements and several other basic needs for students. Marinello School of Beauty is trade school where students said they put in thousands of hours and dollars in hopes of pursuing a professional career. Some in Seaside planned to graduate in a couple months, now those dreams could be put on hold.

“You informed me about this before my school did so that’s why i was upset,” said Marinello student, Marina Barragan.

KION tried to talk to someone at the school, but they refused to comment. The U.S. Department of Education said the school was accepting fake high school diplomas from students, allowing Marinello to receive more money from financial aid and increasing enrollment fees. The school is also accused of misrepresentation when it failed to provide students sufficient job training.

“Everyone was paying money and we had no products, like the right essentials we need to do a facial, no cotton balls,” said Barragan.

Barragan said the school gave her and other students a letter explaining its situation shortly after she learned about the investigation from KION.

The letter states: “The departments delay has forced us to operate without 80 percent of our usual funds. A financial situation that is not sustainable for the school.”

The letter also said Marinello plans to appeal the decision, believing it did nothing wrong. If the decision isn’t reversed, Barragan is wondering what will happen to the $12,000 she paid in tuition fees.

“They’re saying that the owner is supposedly going to pay out of pocket. I’m looking into transferring my hours to another one or I have a daughter at home so I have to I don’t know, I want to open a salon one day eventually, and I’m just looking for another place now,” said Barragan.

2,100 students between the California and Nevada campuses could be affected by the federal decision to stop funding Marinello schools. The program has until February 16 to dispute those findings.