Law Students

Bill Proposed Prohibiting Agencies from Revoking Professional Licenses of Student Loan Defaulters
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

student loan

Summary: A new bill introduced would prevent states from punishing those with student loans who cannot pay by revoking their professional license or driver’s license.

Nineteen states allow government agencies to take a person’s professional license and even driver’s license away if they don’t pay their student loans, according to Law.com. U.S. Sens. Marco Rubio and Elizabeth Warren introduced a bill that will prohibit states from revoking professional and law licenses from student loan defaulters.

  
What
Where


The Protecting Job Opportunities from Borrowers Act could serve as an important bill for lawyers drowning in student loan debt but at risk of losing their ability to practice law and make money. If the bill passes, in two years states will no longer be allowed to revoke licenses due to loan defaults. Defaulters will also be able to file for injunctive relief in states do not comply with the new law.

Warren said, “State governments punishing people struggling with student loans by taking away drivers’ and professional licenses is wrong. These policies don’t make sense, because they make it even harder for people to put food on the table and get out of debt.”

Rubio called the current conditions a “Catch-22” where people are struggling with money and then getting their ability to make money taken away so now they are even deeper in financial trouble.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




There is no complete data on the number of attorneys that have been affected by their student loan defaults by having their law licenses revoked. Law schools that are part of a university have their numbers included with the university so standalone law schools end up being the only ones that submit direct data to the U.S. Department of Education. Of the 23 standalone law schools, the number of graduates who defaulted over the time of two years ranged from .2 percent to 4.8 percent.

Similarly, state agencies don’t generally track or report the number of licenses they revoke for student loan defaults, according to The New York Times. The Times uncovered 8,700 cases of people losing their professional licenses but feel that the real number is much larger since it includes all professions like nurses, teachers, barbers, real estate brokers, lawyers, and more.



Some of the states that currently allow licenses to be revoked include California, Texas, Florida, Georgia, and Massachusetts. One former Houston lawyer, Frank Santulli III, had his law license revoked in 2009 when he was unable to pay his student loans and other debts. The Texas Southern University Thurgood Marshall School of Law graduate had around $67,000 in outstanding debt at the time. He now works as a mediator. Santulli is still working on restoring his legal career after having it revoked.

Santulli said, “I remember when my issue first came to light, medical doctors and other professional licensed individuals were in great disbelief that an agency could revoke a license. Basically, in most professions which require a state license, there are and can be many other ways a state can monitor professional or moral conduct. Revoking someone’s professional license for past debt, slow pay, or student loan default is more punitive and not curative or rationally related.”

Do you think government agencies should be able to revoke someone’s driver’s license or professional license for not paying their student loans? Share your thoughts with us in the comments below.

To learn more about student loans, read these articles:

Photo: pixabay.com



 

RELEVANT JOBS

Attorney

USA-NY-New York City

Law Firm is seeking to hire a Litigation Associate for a Insurance Coverage and Complex Property Dam...

Apply now

Associate Attorney

USA-CA-Los Angeles

We are looking for a self-motivated associate attorney to work with us on litigation cases primarily...

Apply now

Associate / Counsel: Full Time – Experienced - Hybrid

USA-PA-King of Prussia

ROBSON & ROBSON P.C. seeks a litigator with more than 10 years’ experience to handle a variety...

Apply now

Attorney

USA-FL-Boca Raton

This is a full-time role for a Labor & Employment Law Attorney. The attorney will be responsible for...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Education Law Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with ...

Apply Now

Education Law Attorney

USA-CA-Carlsbad

Carlsbad office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with 4-...

Apply Now

Education Law and Public Entity Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law and public ent...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top