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Health Professionals Have Licenses Suspended Over Student Loan Debt


Student loan servicers and student loan companies have more power than your average creditor. They are given rights and shortcuts that normal creditors do not have. This is why students have such difficulty with these loans–aside from the often astronomical amounts that are owed, the money needed to repay them seems to disappear from people’s pockets without notice or due process.

The Powers that Student Loan Companies Have

Student loan companies have the ability to simply garnish your paycheck. All creditors have this right, but regular creditors have to sue you, take you to court, and get a judgment before any order is entered that money can be taken directly from your paycheck.

Student loan companies get a shortcut–they are required to send you a notice, but can garnish your money without taking you to court or obtaining a judgment.

Also unlike regular creditors, student loan companies have special protection from bankruptcy. The current bankruptcy laws make discharging debt extraordinarily difficult.

Suspending Licenses

Another lesser known power of student loans is the power to suspend the license of a health care worker. That includes not just doctors, but also nurses, and health care aides.

Although twelve other states have laws that allow the revocation or suspension of professional licenses for nonpayment of student loans, Florida is one of the few that is actively enforcing them. A recent crackdown affected around 100 professionals who had their licenses revoked.

Imagine spending years giving up personal endeavors, and spending hours of study, trying to become a medical professional. You accomplish your goal, only to find your license revoked because you owe student loans that you can’t pay.

Ironically, the one thing that gives you a fighting chance of paying back your loans–a paying job–is the exact thing taken away from you for not paying them. The end result is that many debtors will be unable to ever cure their student loan defaults, creating a scenario where they cannot pay if they don’t work but they cannot work because they have had their licenses suspended for not paying.

Bear in mind that many medical professionals are not high paid doctors or surgeons. They may be home health care workers, or nurses who work for modest salaries helping the elderly at assisted living homes. Many are struggling to get by even while working.

Bypassing Exemptions

While other creditors can garnish wages to collect judgments, they can only garnish a small part of a paycheck. Even then, a debtor has the right to assert exemptions, which can further limit how much a creditor can take from someone who owes money.

Normal creditors cannot take away someone’s entire livelihood, bypassing exemptions to wage garnishment, which is the practical effect of revoking a medical license.

These revocations also cause hardship on doctors’ offices, nursing homes, and ERs, which suddenly lose qualified staff, as well as patients that may suddenly lose trusted medical advisors and caretakers.

Get help with your student loans and help applying for the available loan relief programs. Contact Jacobs Legal in Miami today to discuss your student loan options.


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