DEFAULT ON STUDENT LOANS (H 4339)

By Bob Katzen

The House approved and sent to the Senate a bill that would repeal a current law, passed in 1990, which created professional licensure consequences for anyone who defaults on their student loan. Under existing law, the Massachusetts Educational

Financing Authority and the American Student Assistance can request that a borrower’s state-issued professional or occupational certificate, registration or license be suspended, revoked or cancelled for default on educational loans made or administered by either group.

Supporters said that Massachusetts is one of only a handful of states in which a person can lose their professional license if he or she defaults on his or her student loans. They argued the law is unfair and counterproductive because it makes it harder for people to repay their loans by revoking their licenses and depriving them of the opportunity to earn income and make a living in their chosen field.

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