While the recent law in Texas allowed the state to revoke the occupational license of someone who has defaulted on student loans, lawmakers sought to change this law and remove student loan default as grounds for occupational license revocation. The news comes after a 2018 report by the Texas Tribune revealed that 4,200 professionals throughout the state were at risk of having their occupational licenses revoked for nonpayment of student loans.
About Occupational License Revocation for Student Loan Default
Existing Texas law allowed occupational boards to deny a license, suspend or deny a renewal revoke due to not making required student loan payments according to the loan holder’s agreement with the student loan administrator.
According to the Tribune’s report, more than 4,200 people were at risk of losing their occupational license due to student loan default that occurred in 2017, including the following:
- 250 teachers
- Nurses
- Pharmacists
- Cosmetologists
- Security guards
A 2017 report found that about 20 states had similar laws allowing for action to be taken against an occupational license. However, some of these states have since abandoned them. Additionally, federal legislation would bar states from revoking or refusing to issue an occupational license for this reason.
In addition to the ability to take action against a person’s occupational license, those who default on a student loan are also subject to other sanctions, including wage garnishment and withholding of tax refunds.
About the Proposed Law
Several pieces of legislation filed during 2019’s legislative session focused on changing the . The bill garnered bipartisan support and was approved by may lawmakers across various practices. More than 30 lawmakers signed on to support the bill.
Governor Abbott signed the new bill, which took effect on June 7, 2019. This law explicitly prohibits state boards from suspending, denying or refusing to renew a professional license due to student loan default.
Help with Your Occupational License Dispute
Even if the law does pass, there are still other reasons why an occupational license can be revoked, such as if a person fails to pay child support or someone takes action against their license for some type of alleged misconduct. Our employment lawyers can discuss your employment law dispute and whether action can be taken against your or your employer’s occupational license. Regulatory action can impact the license holder’s ability to complete work under the license, subject the person to fines or result in the loss to practice in this area in the state. Contact us today for a free consultation with an experienced employment lawyer.
