DEFAULT ON STUDENT LOANS

By Bob Katzen

Back on January 18, 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. The Senate has not yet acted on the measure.

Supporters say 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.

“This is an old, misguided policy that is not currently being enforced,” said sponsor Rep. Natalie Higgins (D-Leominster). “Student loan borrowers who fall behind on their student loans should not be further penalized and lose their ability to work and continue to repay their student loan debt. Sen. Jamie Eldridge has been a fantastic partner on student debt issues and is helping to shepherd this bill through the Senate.”

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