Sometimes, a person will end up facing financial difficulties that put them at risk of defaulting on student loans they hold. As we touched on in a previous post, here in Illinois, student loan defaults can be particularly impactful on individuals whose work requires them to hold a professional license. This is because, under current state law, a person who defaults on their student loans could end up having professional licenses they hold suspended or revoked in connection to the default.
Illinois' legislature is currently considering a bill which would make a major change to state law when it comes to this issue. Specifically, the bill would make it so license revocations, suspensions or denials would not be issued over student loan defaults. Thus, the possibility of losing a license would be taken off of the table as a potential impact of a student loan default by the bill.
Do you think Illinois will ultimately change its law so that professional licenses will no longer be taken away for student loan defaults? Do you think such a change would be a good thing for the state and its citizens?
Of course, if the bill passes, this does not mean that student loan defaults will be a non-impactful thing for individuals who default. The possibility of losing a professional license is just one of the impacts a person could currently end up facing as a result of a student loan default here in Illinois. This bill would leave the other potential impacts untouched.
As this underscores, troubles with student loan debt can be a very serious thing. Now, there are things that are sometimes able to help those who are facing student loan debt troubles stabilize their debt situation and stay on the rails financially. A Chapter 13 bankruptcy can sometimes help with this. While student debt generally cannot be discharged in a bankruptcy, it typically can be reorganized in a Chapter 13 bankruptcy repayment plan. Such reorganization can sometimes put a person in a better position to stay on top of their student debt payments. Bankruptcy attorneys can help answer questions individuals who are facing the possibility of defaulting on their student loans have about whether Chapter 13 bankruptcy might be able to help them.
Source: illinoishomepage.net, "Lawmaker wants to change license-loan law," Kelsey Gibbs, April 23, 2015