Can I still take nclex-rn if I have student loan in default?Register Today!
- by justkeepworking Jun 15, '12Hi,
I am graduating from nursing school, and was filling out nclex application.
But there was a question about whether I have a student loan in default.
I paid all from my pocket for the nursing school that I just graduated. So no problem in my school proving to the state board that I graduated.
But previously, I dropped out of ph.d in philosophy, and the student loan from this has been in default for couple of years now. (it was private bank student loan first, and it was sold to other collection agency and then to other…. harassing calls in the beginning, and someone delivering from county office for legal action. but now, receive letter only when the debt is transferred to other agency.)
If I check “yes” in student loan on nclex application, does that mean that I now have to first resolve my debt? Or should I just check “no”? if so, I am concerned that they find out and I might get penalized more.
Should I apply to different state? Maybe different state might not know about my previous school since it was a state university.
Sorry about this question. I am very responsible and I will take care of all my debts. It is just that it was impossible to pay with my minimum wage.
one last thing. I went to OIG – office inspector general. Nothing pops up when I searched for my name. anyone knows why?
- Jun 15, '12 by TheCommuterI think the state board of nursing is more concerned with defaults on government student loans (for instance, Stafford loans).
- Jun 16, '12 by NRSKarenRNHospitals scramble to avoid licensing penalties | Healthcare Finance ...
“But in January 2011, that list got widened to include defaulting on a federal student loan.
Federal Judgment Lien – A lien that is placed against an individual’s home or property when a court-ordered judgment is entered against the individual for an unpaid Federal debt (e.g., a Federal student loan or Federally-insured home mortgage). An IRS tax lien that is not created pursuant to a court-ordered judgment is not a Federal judgment lien.
State licenses can be revoked in almost all states by proven unethical or dishonest acts of the licensee. If there was fraud in the application for the loan, or in the failure to repay as agreed, it is conceivable that a state licensing agency could act on that evidence to initiate license discipline, including revocation.
42 Tennessee Nurses Suspended For Defaulting On Student Loans
TX:Disciplinary Guidelines for Criminal Conduct
You would be wise to check "YES" disclose this private loan default as will appear on a credit check the BON often runs to check for student default loans. Explain situation and attempts at repayment. READ your application carefully.
Best wishes moving forward.Last edit by NRSKarenRN on Jun 16, '12
- Jun 16, '12 by vintagemotherI want to tell you that you may be able to get your loan out of default by consolidating it with the Federal Government Dept of Ed. I am in the process of doing this for a Perkins Loan and the process was quick and is a major blessing to me. I had other loans in good standing but this one was sold to a collection agency by the University and eventually ended up in default.
Here is a link: Direct Consolidation Loans - Welcome!!!
- Jun 16, '12 by emcadamsI would recommend asking an attorney. If someone in your family is an attorney, or just pay the few hundred for some sound advice from a reputable one. If you check 'no' then it sounds like your future RN license could be on the table if it is found out that you lied on your application for the NCLEX. To me, it seems like a housekeeping question, much like employers running credit checks on future employees. But I feel your loan default should not make you ineligible. Usually it is crimes that do that. Sorry it's a tough call. I understand you not wanting to have anything standing between you and your NCLEX...but seems like you already have something there and it could cost you a lot more down the road if you ignore it.
- Jun 16, '12 by justkeepworkingThank you.
The application asks a) if I have any outstanding loans made or guaranteed by the state. And b) if such a loan(s) is any part in default.
The loan I have in default was Citibank student loan.
Thanx to TheCommuter, I now know that Direct Loan(Stafford Loan), and private student loan are different types of student loans. It seems that the former is government guaranteed, whereas the later is not.
Consequently, I don’t have to check a) and b).
It seems that I can sit on NCLEX. And in regard to my job, I think most human resource dept do not runs a credit report, although there are a few that check.
I heard that any collection agency can pursue debt collecting by appearing at my job site. But I will deal with the debt once I become a nurse. I am just concerned about getting a license and a job.
- Jun 25, '12 by HouTxIn the state of Texas, default on student loans will prevent initial licensure or renewal of professional license (any type). I'm sure each state has their own rules in this regard.