Texas Student Debt and your Professional License

: Chris Lee Law Firm

  Filed under: Student Loans

Career Word Sinking Showing Failing Or Lost Job ProspectsIf you live and work in Texas and owe money on your student loan debt, you should be aware that your ability to earn could be in jeopardy. Texas state law, along with 17 other states have statutes on the books that allow licensing organizations to deny your professional license if you fall behind on student loan payments. In recent Texas news, nearly 4,000 professionals in the state are at risk of losing their state-issued licenses due to student loan debt.

Falling Behind on Student Debt

Nurses, teachers, attorneys, and even doctors are at risk of losing their licenses due to these aggressive student loan debt rules. And to make matters worse, student loans are among the debts that aren’t dischargeable in bankruptcy. While many states have eliminated such laws, Texas is still one that carries the arcane law.

Should Student Debt Laws be Repealed?

Obviously, the rules were meant to be tough on those who fell behind on their student loan debts, but do they simply pile on trouble for individuals already having a difficult time? After all, if you can’t pay your student loan payments how are you expected to do so if you lose your ability to work in your chosen profession? While there are a few factors at work here, it’s unclear of just what the outcome will be. There has been a nationwide debate on whether to include student loan debt under the category of unsecured debt that is able to be discharged in bankruptcy. Additionally, others are calling for these Department of Education suggested laws to be removed from the books.

Deal with Student Debt and Keep your License

If you have fallen behind on your student loan debt, the positive news is that there are options that you can take, although time is of the essence. If you can’t afford your student loan payment, you might be able to decrease the amount by switching to one of the many repayment plans offered by the federal government. Alternatively, you may be able to lower your overall payment and interest by consolidating your student loans.

Bankruptcy May Help

If you run out of repayment plan options for your student loans, you should consult a Texas bankruptcy attorney about alternative measures. Discharging your student loans in bankruptcy is rare, but not unheard of. Additionally, if you can’t discharge student loan debt, your bankruptcy lawyer can help you eradicate other types of unsecured debt, freeing your pocketbook up to catch up on your student loan payments and saving your professional license.

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