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Florida Board of Health Suspends Healthcare Licenses Over Student Loan Defaults

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by Swellz Swellz (Member)

Swellz has 6 years experience and specializes in oncology, MS/tele/stepdown.

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"[T]he state’s Board of Health suspended more than 900 health care licenses – including professional certifications for registered nurses, Certified Nursing Assistants, pharmacists and opticians – in the just the past two years alone."

https://www.abcactionnews.com/news/local-news/i-team-investigates/florida-board-of-health-suspends-hundreds-of-health-care-licenses-over-student-loan-defaults

I'm not saying people shouldn't pay their debts. I'm saying preventing someone from working seems like a foolish way to get them to repay their loans.

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kbrn2002 has 25 years experience as a ADN, RN and specializes in Geriatrics.

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That never made any sense to me either. How is eliminating a person's source of revenue helping them? If they weren't paying on the loan before it's certain they won't be able to pay on if they aren't working.

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hppygr8ful has 15 years experience and specializes in Psych, Addictions, Elder Care, L&D.

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I agree - it's like the old British practice of debtor's prison. They would be better off the get a judgement and garner the wages of those with delinquent loans. 

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catsmeow1972 has 15 years experience as a BSN, RN and specializes in CNOR.

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If the act isn’t bad enough, the way it’s done is to file an administrative complaint. Said administrative complaint is the tool that is used to suspend these people’s licenses. So for all the “well the majority of them avoided actual suspension by making arrangements with thier servicers prior to the suspension” blathering? That’s kinda bull 🍪. To begin with, there’s the glaringly obvious stupidity of taking action to eliminate the income stream needed to pay the debt to start with, as stated above. The second issue is what I get hot over. Those administrative complaints, wether suspension is avoided by making arrangements or not are still PUBLIC RECORD! So now, if someone wants to be nosy, they can utilize my public professional license to determine if I might be having money issues. It’s as if to say these loan companies are using this tactic to say “not only am I going to ruin your means of possibly paying me, I’m also going to embarrass the heck out of you. Even worse? No matter what you do, those complaints, ergo discipline never go away....ever. Seems awfully harsh...ya think. 

 

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hppygr8ful has 15 years experience and specializes in Psych, Addictions, Elder Care, L&D.

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One thing I have noticed over the years is how many people are asking about the possibility of student loan forgiveness before they even take out the loan. In my mind this means they don't actually intend to payback the loan in the first place which makes the act theft. 

One should never take out a loan without fully intending to pay it back in full. Sure things happen and people fall into financial holes but for the most part nurses make decent money and if one plans their education carefully you do not have to go into extreme debt. 

I have three college degrees and paid for all of my education in cash. It took longer and I worked the whole time I was in school. I am finishing by BSN at a highly accredited Private University with no debt incurred, because I plan. 

Many get into this mess by attending for profit schools because it is a shorter route not paying attention to the fact they have a lower NCLEX pass rate (66%) than public community college program (89%) . 

Hppy

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Goldenfox has 12 years experience.

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20 hours ago, hppygr8ful said:

One thing I have noticed over the years is how many people are asking about the possibility of student loan forgiveness before they even take out the loan. In my mind this means they don't actually intend to payback the loan in the first place which makes the act theft. 

One should never take out a loan without fully intending to pay it back in full. Sure things happen and people fall into financial holes but for the most part nurses make decent money and if one plans their education carefully you do not have to go into extreme debt. 

I have three college degrees and paid for all of my education in cash. It took longer and I worked the whole time I was in school. I am finishing by BSN at a highly accredited Private University with no debt incurred, because I plan. 

Many get into this mess by attending for profit schools because it is a shorter route not paying attention to the fact they have a lower NCLEX pass rate (66%) than public community college program (89%) . 

Hppy

You seem a bit judgmental. I remember a time when college education was much more affordable. I also worked full time while I was in school and paid my way through my RN and BSN degrees. But that was all a very long time ago.  Most available non-professional jobs these days don't pay enough for young people to work and fully pay for today's college costs out of pocket. And newer accreditation rules no longer allow most health science programs to give students very long to complete their credits anymore either. So, dragging things out while you work to save and do a class here and there in between is no longer a strategy that works for most in modern academia. If a student hasn't finished the degree within x number of years the validity of certain credits become null, and the student has to re-take these credits in order to meet the graduation requirements. 

According to you, if a student inquires about student loan forgiveness programs before applying for a loan this means that the student doesn't intend to repay the loan. This is not true. You pride yourself on being a good planner, so you should appreciate that good financial planning means carefully researching all of one's options before making major financial commitments. Student loan forgiveness programs are not a freebie for the new graduate. He or she is trading part of payment for their labor in exchange for a reduction of their student loan balance. This deal works ok form some, but not so great for others---for a variety of reasons. 

Students are still being sucked in by the misinformation  about college education and student loans. The law requires that they are educated about borrowing this money before they receive it but most still don't really understand. The lenders are charging interest on the loan amounts from day one, and a few thousand dollars easily becomes many thousands of dollars after several years. And a big surprise is waiting for the borrower after graduation when the payments become due.

We don't know for a fact that most graduates default because they never intended to repay from the start. It is possible that many looked for a long time and couldn't find jobs that pay enough for them to pay back the loans AND live on without having to scrounge, so they gave up.  Sure, many nurses make decent money---IF they can find a job. In many areas getting a job as a new grad RN isn't so easy anymore. And the pay isn't always so great either. Also, many, MANY new RNs decide after only a short time that they hate bedside nursing and either go back to school or quit the field entirely and take a lower paying job doing something else that they like more. But they still have to pay back the loans, perhaps with even less income, or take out new loans to pursue a different career. There are many variables. 

For-profit, or not, college, and the co-conspirator textbook publishers, and the student loan hawks are a major con job on the nation's youth. And government intervention to prevent delinquent borrowers from earning an income was an extremely bad idea, but I'm not surprised that it came from Florida---the worst state in the union for nurses.

 

 

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kbrn2002 has 25 years experience as a ADN, RN and specializes in Geriatrics.

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Problems with the student loan forgiveness program have been widely reported. It seems less that 1% of applicants are actually seeing the balance on their loans being written off after 10 years as promised.   Many of those people were fully expecting their loans to be forgiven and only found out after faithfully making those payments for 10 years that they were disqualified from the program based on some technicality.  There are actually a good number of law suits now against the loan servicing companies because of this. I'd expect those law suits to take years to reach any kind of resolution so what do people do in the meantime? 

But loan forgiveness not working as expected is only a very small part of why student loans might not be paid off as easily as hoped.  Too many students find themselves in massive student loan debt with the ever escalating costs of education and they don't find jobs that allow them to comfortably make those large payments after graduation.  The inflation of cost of education has far outpaced wage increases. 

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Ruas61 has 35 years experience as a BSN, RN and specializes in MDS/ UR.

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People lose their license for unpaid taxes in some states. 

 

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Persephone Paige has 15 years experience as a ADN.

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One of my friends was just saying that she now owes $6,000 more than when she started paying. Talk about depressing!

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catsmeow1972 has 15 years experience as a BSN, RN and specializes in CNOR.

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I’ll be paying mine off until I die anyway and since I can’t get a job, I do paperwork every year that reduces my payment to zero. The interest keeps compounding and the balance just goes up and up.

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CrunchRN has 25 years experience as a ADN, RN and specializes in Clinical Research, Outpt Women's Health.

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1 hour ago, catsmeow1972 said:

I’ll be paying mine off until I die anyway and since I can’t get a job, I do paperwork every year that reduces my payment to zero. The interest keeps compounding and the balance just goes up and up.

Why can't you get a job?

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catsmeow1972 has 15 years experience as a BSN, RN and specializes in CNOR.

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7 hours ago, CrunchRN said:

Why can't you get a job?

I prefer not to discuss that in this particular thread as it will veer off the original topic, 

thank you.

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