Can Unpaid School Loans Cost You Your Kansas Professional License?

School Loan debt in the United States has reached $1.6 trillion. The massive amount is a record high, and making student loan debt second only to mortgage debt when it comes to consumer loan debts. About 45 million people are facing varying amounts of debt from obtaining their degrees, and many are making large monthly payments to creditors. There have been debates as to what penalties should apply in these cases.

More than one out of every ten borrowers have a loan in default. In total, five and a half million borrowers have defaulted on school loans, meaning $119.8 billion in loans have defaulted. It is important to note that most people cannot discharge their student loan debt in bankruptcy. What this means is that the massive debt for their school loans will stay with them for life, or until they find some way to pay them back.

Since you are unlikely to get rid of your student loan debt, what will happen to your professional license in the event that you end up in the more than ten percent of borrowers who have defaulted on their loans? In some cases, one form of penalty is a loss of a professional license.

Of course, losing a professional license will make it impossible for a person to work in the career that they studied and worked hard to obtain. It will also make it more difficult for that person to pay off their debt.

License Suspension States

By 2010, close to half of all states had laws that could cause the loss of a license for professionals who default on school loans. Most states with such laws allowed for the suspension of any professional license based on the default of any kind of education loan. The boards were often able to make the final decision, though.

States Begin to Backtrack

While loan debt has created a crisis across the country, many states began to realize that these laws were not productive. Several states made moves to repeal the laws and prevent a failure to pay school loans from causing a loss of a professional license. In most states, the licensing boards lost the ability to suspend or revoke a license based on the individual’s loan repayment status.

Some States Still Allow Loan Debt to Impact Initial License Applications

Only a few states have stated that student loan debt cannot be considered when a person is applying for a new professional license. This means that loan debt can be a factor weighed by licensing boards in many states.

Of course, aside from your license, there are many consequences related to failing to pay your student loans. In Kansas, you could have your tax returns or wages garnished to cover the loan payment costs. Your credit score will suffer significantly for failure to pay. In severe cases, it is possible that you could end up facing a lawsuit.

Any Denial of a License or Challenge to a Professional License Should be Taken Seriously

Kansas does not allow for professional license suspensions for individuals who failed to pay their student loans. Licensing boards may deny applications for other reasons, including something such as lying on the application. Additionally, a disciplinary action taken against a professional in another state could impact the ability of the professional to transfer his or her license to Kansas.

If Your License is Denied or Challenged, You Need Help

A challenge to a professional license or the denial of a license is a stressful event. Those who face such scenarios need to take them seriously and should reach out to a Kansas professional licensing attorney to discuss the claim made against them.

Contact the Missouri Professional Licensing Defense Attorney at Sanger Law today at (785) 979-4353 to discuss your case.

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