Celebrating 10 years! 2007-2017

Disbarred for Not Repaying Loans?

A recent New York Times has an article duscussing state susp made4it11/26/17
Lame news companies can't even find a sympathetic face or ma triplesix11/26/17
The conspiracy theorist in me thinks they pick unsympathetic soupcansham11/26/17
That's what I was getting at but didn't want to sound too Lo triplesix11/26/17
More kids should make ibr payments lower. esquire13811/26/17
new lawyers have been denied admittance for owing too much m dingbat11/26/17
http://abcnews.go.com/Business/ohio -supreme-court-denies-law flyer1411/26/17
That’s insane. Are they denying medical doctors, graduatin cyph3r12/07/17
A) that story is from 2011 B) it appears that he got dinged dingbat12/07/17
I only skimmed the article, but it seems counterproductive t brassica712/07/17
It's the inability to handle debt responsibly. Why did the i guyingorillasuit12/07/17
I agree that there are options these people could have pursu brassica712/08/17
Well the policy justification for the distinction would be t onehell12/08/17
made4it (Nov 26, 2017 - 3:32 am)

A recent New York Times has an article duscussing state suspensions of professional licenses for failure to repay student loans.

https://mobile.nytimes.com/2017/11/18/business/student-loans-licenses.html

Never mind the example of the lady mentioned in the piece who irresponsiby chose to have a zillion kids.

Has anyone here seen bar licenses suspended for unemployed or underemployed attorneys?

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triplesix (Nov 26, 2017 - 11:53 am)

Lame news companies can't even find a sympathetic face or maybe they don't even try?

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soupcansham (Nov 26, 2017 - 12:20 pm)

The conspiracy theorist in me thinks they pick unsympathetic examples just for rage clicks.

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triplesix (Nov 26, 2017 - 5:55 pm)

That's what I was getting at but didn't want to sound too Looney haha

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esquire138 (Nov 26, 2017 - 12:25 pm)

More kids should make ibr payments lower.

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dingbat (Nov 26, 2017 - 12:59 pm)

new lawyers have been denied admittance for owing too much money - though in the days of IBR, student loans alone won't do it. Having a high loan balance in and of itself is not an issue, but failure to make payoff arrangements can be.

Paying IBR is fine, forbearance is fine, even for non-student loans. As long as you communicate with your creditor and make arrangements, you're fine. But if you default on your loans without attempting to resolve the matter, that's the kind of C&F offense that can get you disbarred.

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flyer14 (Nov 26, 2017 - 1:21 pm)

http://abcnews.go.com/Business/ohio-supreme-court-denies-law-license-law-grad/story?id=12632984

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cyph3r (Dec 7, 2017 - 8:41 am)

That’s insane. Are they denying medical doctors, graduating upwards of $200K, medical licenses? I doubt it. What’s he supposed to do with debts and no ability to work due to this...Backpage?

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dingbat (Dec 7, 2017 - 9:20 am)

A) that story is from 2011
B) it appears that he got dinged for being in default of his loans

B is the key issue here. having massive student loan debt isn't a problem. Being in default is a problem.
Also, non-student loan debt could be an issue, say if there's a lot of credit card debt.

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brassica7 (Dec 7, 2017 - 9:40 am)

I only skimmed the article, but it seems counterproductive to suspend someone's professional license as punishment for not repaying loans. Won't suspension make it much harder for the worker to earn a living and repay the loans? Also, it seems inappropriate for a professional licensing body to effectively do debt collection enforcement. What is the rationale for suspending a nursing license for non-payment? Maybe there is a greater risk that a financially strapped nurse will steal medications for resale, but that is speculative.

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guyingorillasuit (Dec 7, 2017 - 5:55 pm)

It's the inability to handle debt responsibly. Why did the individual default if there are options available, such as IBR? If the loans are private, did the individual file BK, or try to renegotiate the payment schedule? Did he make any efforts to pay?

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brassica7 (Dec 8, 2017 - 10:33 am)

I agree that there are options these people could have pursued to better handle their loans, but I don't see how that logically translates to them losing their nursing licenses. What's the connection between a borrower making poor or uninformed financial decisions and a borrower's ability to practice medicine? Let's say that instead of defaulting on student loans, these nurses had defaulted on a car note. Should the body overseeing licensing for nurses start yanking nursing licenses until the bank gets its money?

On a side note, I don't believe that private (or government) education loans can be discharged in bankruptcy.

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onehell (Dec 8, 2017 - 1:30 pm)

Well the policy justification for the distinction would be that the car note was not funded with taxpayer dollars. Government licenses, the theory goes, should not be held by people who have failed to honor obligations to the government and who are not even trying to make it right.

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