A new piece of legislation has been introduced in the Florida State Senate which would protect the professional licenses of student loan borrowers from being suspended or revoked in the event they fall into default on their loan obligations.
The measure is Senate Bill 356, also known as the “Keep Our Graduates Working Act.” The bill expressly prohibits a state authority from suspending or revoking an individual’s professional license, registration, permit or certificate due to the person falling into delinquency or default on his or her student loan obligations.
The bill is receiving support from the Florida house, as well, as Rep. Ramon Alexander, Tallahassee (D) says he fully supports the measure and sees it as a logical way to keep student borrowers working through use of their professional licenses and certifications and thus continuing payments on their loans.
According to the senators presenting this legislation, the purpose behind “Keep Our Graduates Working” is to make sure that Floridians can keep their professional licenses and continue working so that they can continue paying their loans and keep them out of further default or delinquency.
Many Florida borrowers have been hit hard by this tactic of having their professional licenses suspended due to them no longer being able to pay their student loan debts. Last year, the Florida State Board of Health reported that nearly 900 healthcare workers were at risk of losing their licenses since November 2016 due to falling into default on their loans. Without their licenses, all these workers would be out of a job.
The situation presented a difficult problem for borrowers. In order to earn income to pay on their debt, they need to be able to utilize their professional licenses. By taking away that ability to earn an income if their licenses are revoked, the borrowers are not able to pay on their debt, putting them in a Catch-22 that they will never be able to escape.
To qualify for the protection offered by the legislation, students must have graduated from an accredited college or university.
Many believe that this law is a step in the right direction. By protecting the right for individuals to use their professional certifications to earn an income, the law prevents even more loans from falling into default, a problem that is plaguing consumers across the nation. It is also ensuring that these working professionals are out in the community providing the services that are so desperately needed, including those in the education and healthcare industries.
If the legislation is passed, it is anticipated to go into effect on July 1, 2020.
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