Defaulted loans Nclex & license

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Hello, everyone. I am currently enrolled in a nursing program, doing well and cannot wait to become a nurse! Few years ago I went to another college and never graduated (majored in something other than nursing), and the only thing I got out of it was student loans. For many reasons (they aren't important, please don't tell me how irresponsible it is etc) I defaulted on them. Some were federal, some private. I am currently paying some of them on my own, but some are garnishing my wages. Long story short, I was looking at Nclex paperwork and noticed that it asked about federal loans and if any of them are currently defaulted etc. So I started googling and found that in Texas for example graduates can't get a licence if they have defaulted on a federal loan. However, I got mixed information about other states (I live in NY state), does it mean that I will not be able to take Nclex and get licensed? What can I do to ensure this doesn't happen? (I have a year to graduation)... is it enough that I'm repaying the loan or does it have to be completely paid off? I don't know what I would do if I am going to school for nothing and was unable to become an RN. That would be devastating to say the least.

Thanks for your advice and replies!

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I would recommend you talk to a financial advisor. I know that student loans cannot be claimed in bankruptcy, they always have to be paid. I really do not see the connection between your financial obligations and the ability to sit for the NCLEX or obtaining your license.

I can see how it might affect your credit rating and ability to obtain future loans. You might be able to talk to your financial counselor at college, they may have an answer for you.

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It's quite possible you can't take it. I know here in MI you can't and you will get your license revoked or suspended for defaulting. However I think if you start paying and get out of defaultment you can take it.

Maybe call and ask your BON?

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I am from Texas and also have a story similar to yours. I defaulted on $40,000 worth of student loans and was able to take the NCLEX. I did however get them out of default by having them refinanced at a much lower interest rate. I have been paying them off for years now. Its just a lesson learned. Expensive, but a lesson none the less. Good luck in your career.

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Specializes in Community Health/School Nursing.

I am also from the South and if you default on your student loans your license is suspended and you get to see your name on the BON disciplinary actions section of the website.

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Specializes in LTC.

I am in NY. I do not recall Iif student loans are specifically mentioned on the app but there is a question about moral turpitude. Defaulting on student loans might fall under that category.

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Specializes in Psych ICU, addictions.

If you are in NY, then the only answer in this world that will matter is the one that the NY BON gives you. It doesn't matter what the other 50 (this includes D.C.) BONs say about it because you're not applying for license with them...but you are planning to apply in NY. Call/write the NY BON and ask.

In the meantime, I would talk to a financial advisor and/or your lenders and work on addressing the problem ASAP. Your case would look far better if it's obvious that you're doing something about the loans instead of doing little/nothing as you wallow in misery going "poor me!" Plus a financial advisor can help you work things out so you're paying your debt and you're able to eat more than ramen TID.

I've never defaulted on a loan, but I have blown my credit rating to bits in the past by bad financial habits. Bad credit ratings do more damage to your life than you realize. It took many years for me to rebuild my credit (negative judgments come off of your credit rating in 7-10 years), and now I do whatever it takes to maintain it. So I am sympathetic to what you are going through.

Best of luck.

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Specializes in Hospital Education Coordinator.

as if all that were not enough, many employers do background checks and will not hire someone who has loan defaults.

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Specializes in Critical Care, Education.

Just to be clear - Texas is not just picking on nurses.... the same rule applies to ANY professional license, including lawyers, physicians, etc.

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