Doctor and patient discussing

In California, health care professionals are at risk of losing their professional licenses if they default on student loans and fail to repay these debts in a timely fashion.

Article 7.5 of the California Business and Professions Code Section 685, effective July 1, 2003 states that:

(a) (1) A board may cite and fine a currently licensed health care practitioner if he or she is in default on a United States Department of Health and Human Services education loan, including a Health Education Assistance Loan.

(2) Each board that issues citations and imposes fines shall retain the money from these fines for deposit into its appropriate fund.

(b) The board may deny a license to an applicant to be a health care practitioner or deny renewal of a license if he or she is in default on a United States Department of Health and Human Services education loan, including a Health Education Assistance Loan, until the default is cleared or until the applicant or licensee has made satisfactory repayment arrangements.

This area of licensing law defines health care professionals to include nurses, licensed practical nurses (LPN), registered nurses (RN), nurse practitioners, doctors, speech pathologists, occupational therapists, physical therapists and psychologists. Student loans are considered in default after these debts are 270+ days old.

Losing your license due to defaulting on a student loan has a crippling impact to most professionals since inability to work prohibits any ability on your part to repay your student loan debt and interest will continue to accrue on your loan until this happens. Student loans are now the largest source of household debt outside of mortgages in the U.S. and lenders therefore, aggressively pursue delinquent borrowers by filing lawsuits, garnishing their wages, putting liens on their property and seizing tax refunds. These legal entanglements can pile up and create significant issues for any professional who finds themselves in default.

If you are a healthcare professional and have defaulted on your student loan, you should immediately seek the advice of the Law Offices of Lucy McAllister. We can work with you to reapply for your license and successfully obtain the documentation you need to reinstate your professional credentials so that you can continue to practice your profession.

For additional information or to schedule a consultation on a professional licensing issue, please contact our law offices today at (877) 280-9944.