Defaulting on your student loans could lead to the loss of your professional or other type of license. Around 20 states allow the government to suspend a state-issued professional license–like a nursing, teaching, or law license, for example–or other license, like a driver’s or even a fishing license, if a borrower misses too many student loan payments. Losing your professional license could mean losing your primary source of income, which means you'll further lose the ability to make any loan payments, pushing you more and more into debt.
If you're not in default on your student loans yet, but think you might soon be, contact your loan servicer to find out what options are available in your situation. If you've already lost a license due to defaulting on your student loans, you can generally get the license back by entering into a payment plan.
Effective date: December 14, 2017