Forbes recently published the article “Nonsensical State Laws Yank Licenses From Student Loan Defaulters”. It brings to light that in 18 states, student loan borrowers who default on their federal student loans risk having their professional licenses revoked. These laws were enacted under pressure from the Department of Education to get default rates under control.  Let that sink in. It punishes the borrowers who have defaulted on their student loans by taking away their ability to make a living and pay their student loans.


New State Laws Revoke Professional Licenses if You Default on Student Loans

professional license revoked if you default on student loans

As the article states, “State governments enacted these laws at the behest of the Department of Education as a means to deter borrowers from defaulting on their loans. But the logic makes little sense, as taking away a borrower’s right to work also removes a way to earn income and get back on track with her student loan payments.”

There is a much higher default rate for those who never finished their college degree.  By yanking away their professional license or certification for employment, borrowers already in default are left with no job to pay their loans.  And many have no college degree to fall back on.

This policy is absurd. If borrowers in these states lose their licenses, they lose their ability to earn, which decreases the likelihood that they will be able to pay back their loans. Thankfully, Marco Rubio and Elizabeth Warren have joined forces to enact legislation to bar states from taking this asinine action by these 18 states.  Hopefully more collaboration can be done across the aisle to help the ballooning student loan debt crisis in this country.  As the article put it, “Perhaps it’s time for some focus on helping student loan borrowers get out of default. That should begin with giving defaulters back their right to earn a living.”


Lawyer to Help Get Student Loans Out Of Default

If want to know what to do if you default on your student loans, give me a call.  I am a student loan lawyer who has years of experience and a proven track record in helping borrowers get out of default and on with their life.  Contact me at 858-217-5051 and we will set up a time where you and I can discuss your student loan debt situation in a FREE debt relief consultation.

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Daniel R. Gamez, an attorney focusing exclusively in debt relief, is licensed to practice in all state and federal courts in California and Texas. Mr. Gamez owns and operates the Gamez Law Firm in San Diego and Los Angeles, California. For more information, please contact Daniel Gamez at 858-217-5051, or use our online contact form. Stay updated about the latest debt relief tips by following on Facebook and Twitter and read about client success stories on our website.