Do student loans affect licensing?

  1. (this is a copy of a thread I posted in the General Nursing Discussion forum, but i figured some NJ nurses may be more familiar with the procedures of obtaining a license in this state)...

    Hi...

    Quick question...If someone is in default of a student loan, does that affect the ability to get licensed? I live in NJ, and I will be graduating in December, and I was reading the application, and there is a question where it asks if you are in default in regard to any student loan obligation...

    Furthermore, it goes to say that one must obtain documentary evidence that an arrangement has been reached with the bank or entity that issued the student loan, for the eventual payment of the loan...it says that "you will not be able to obtain a license or certificate unless you provide the required documents concerning the plan for payment of your student loan".

    I have paid my way through nursing school, right out of my own pocket, so I have no loans for this period of time. However, prior to that, i defaulted on a loan because i just couldnt pay for it (which was one of the deciding factors to get a well paying job, so that i could clean up my credit).

    What do you guys suggest? I was originially inclined to check "no" on the box, because I assumed that it was only related to my nursing school. Do you know of anyone that was issued a license and had defaulted on previous loans?

    I'd appreciate any input. Thanks.
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    About pcicurn7

    Joined: Oct '06; Posts: 124; Likes: 16
    Specialty: PCICU

    3 Comments

  3. by   Cami82
    I had this problem. I had a student loan in Illinois from 2000, the loan was not in default but in rehabilitation. I was unable to get a nursing license in NJ untill I finished the monthly rehab, I had 5 months to go, or pay off the loan. This loan had nothing to do with my nursing school. I chose yes in the box because it was in default since my rehabilitation was not completed. I ended up having to pay my loan in full for NJ to give me a license and that was the end of last month. If you do have a default loan tell the truth or you can lose your license for a long time R/T deception. PM me if you need any more info I dealt with this from August to October. I just got licensed and I paid my loan off at the beginning of Sept.
  4. by   pcicurn7
    After doing some research, i have found what could be somewhat of a loophole. I will not be working in NJ state (i will be working in NY). So i downloaded the NYS license, and all they ask is if one is in default with a NYS guaranteed loan, which i do not have. So, i guess my best bet is to apply to NYS directly.
  5. by   EnergizerNurse
    Don't forget that certain loans, like Perkins, are eligible for loan cancellation when you work as a nurse.

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