PROHIBIT REVOCATION OF, DENIAL OF OR REFUSAL TO RENEW A STATE-ISSUED PROFESSIONAL LICENSE AS A RESULT OF STUDENT LOAN PAYMENT DELINQUENCY (S 2139)

By Bob Katzen

The State Administration and Regulatory Oversight Committee’s hearing included a proposed measure that would repeal the state’s current law that allows for professional licenses to be revoked from, denied to or refused to be renewed for individuals due to a delinquent student loan. Under the terms of the proposed measure, with the exception of the Division of Banks, no state board of registration or agency would be permitted to revoke, deny or refuse to renew any professional license.

Under current state law, a borrower’s state-issued professional license cannot be revoked from, denied to or refuse to be renewed for only a borrower who is in default on an education loan. It does not exempt students who are delinquent but have not yet defaulted.

Many professionals including electricians, plumbers, accountants, real estate appraisers, real estate brokers and massage therapists are required to be licensed by the state.

“This is a commonsense bill that would extend those unemployment protections to individuals who are behind on their student loan payments,” said sponsor Sen. Ryan Fattman (R-Sutton). “It ensures they don’t fall further behind, or risk defaulting, if their professional license is at risk of being withheld.”

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.