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Student Loan Default License Suspension

If a borrower has defaulted on his or her federal student loan(s), the federal government can block renewal of professional licenses. This option is usually only used as a last resort after all other attempts to collect on the defaulted loan have failed. Additionally, there are states that can block the renewal of professional licenses for defaulted federal student loans. For example, health care professionals licenses for nurses, licensed practical nurses (LPN), registered nurses (RN), nurse practitioners, doctors, speech pathologists, occupational therapists, physical therapists and psychologists can be blocked in California, Alaska, Iowa, Montana, and Texas, to name a few states.

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