A number of states allow professional and vocational boards to refuse to certify, certify with restrictions, suspend or revoke a member’s professional or vocational license and, in some cases, impose a fine, when a member defaults on student loans. The state laws apply to members of the various professions working in that state.
Some of these states’ provisions apply to particular professions or vocations such as attorneys, health care professionals, teachers, insurance professionals, state officers, and commercial fishermen. Others apply more generally to anyone whose profession or vocation requires licensing.
Laws that suspend or revoke professional licenses because of student loan defaults typically give affected individuals notice of the action and an opportunity for a hearing. Some state laws also allow for license reissuance once a licensee in default enters into a loan repayment plan.
Below is a partial list of states with these types of laws. Borrowers should check with their state education departments or other authorities for more information. Other states not on this list may have similar laws.
- New Jersey
- New Mexico
- North Dakota