You’ve worked hard for your professional license, but all of that hard work may have left you with some student debt.
You’re not alone. Tens of thousands of students finish their education wondering how they’ll ever pay off their loans. Student loan debt is one of our nation’s biggest financial issues right now.
Unlock Legal wants to share with you something associated with student debt that many professionals aren’t familiar with. There are states where a licensed professional could lose their license if they default on their student loans. This is concerning, but it’s important to stay informed about the proper steps in protecting your license.
Due to the student loan default crisis, the government urged states to crack down on repayment by revoking licenses and additional penalties for default. It’s extremely difficult for some professionals to pay off their student loans for a variety of reasons. They may not have been able to secure a job within their profession to pay off their loan, or their income doesn’t match their financial obligations. These repayment issues have prompted some states to take action.
An April 2019 article in U.S. News and World Report identified the 13 states where lawmakers have enacted the suspension or revocation of a professional license due to outstanding debt. The states include:
- Louisiana (only for defaulted state education loans)
- South Dakota
It’s imperative to take steps for repayment as soon as the payment cycle begins, but if you fear financial difficulties, let the loan servicer know the situation prior to the state taking action. Some states have the laws on the books, but to this point, haven’t gone after professionals.
For the states listed above, it’s important to contact the borrower to work out a payment plan that works best for your income. Most borrowers offer an income-based repayment method or suppression payment option to alleviate financial strain. Once you’re on this program, the documentation is filed on your account. This will aid in protecting your license against the potential of being revoked.
The key to protecting your license is communication to all parties involved within the loan process. Even if you’ve defaulted on your loan, there are still options for you. It all seems a bit daunting, but it’s a manageable fix. You’ve worked hard for your license, and we are here to help educate and protect your license. The team at Unlock Legal has worked with licensing boards and attorney that enforce these types of regulations. If you’d like to talk with our team about your situation, please call us at 949-268-2857 or reach out to us here.