School Debts and Licenses

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State Board Report

December

Nineteen states have laws that can revoke state-issued professional licenses of individuals who are defaulting on their student debt, the New York Times reported on November 19. The reporters found that in recent years there were at least 8,700 cases of licenses being revoked or put at risk of suspension.

Supporters of these laws say debtors find a way to pay when facing the loss of a license, while critics point out that losing a license makes it even more unlikely a person will be able to repay his or her debt. Some states are enforcing these laws, others reported to the Times that they were not being used, and Oklahoma and New Jersey eliminated them last year.