(BOSTON – 11/22/2022) On Monday, November 21, the Massachusetts Legislature passed legislation to prevent individuals who default on their student loans from having their license or professional certification revoked as a result. As of Fall 2022, approximately one million Massachusetts residents hold a combined total of nearly $31 billion dollars in federal student loan debt, with an average debt of $34,146 per borrower.

“Student loan debt can be a crippling financial burden on young people who choose to invest in higher education, often following them well into adulthood,” said Senator Michael Moore (D-Millbury). “This week, the Massachusetts Legislature took steps to ease this burden on those who struggle to repay their student loans. By banning the revocation of professional licenses or certification due to loan default, we are allowing borrowers the opportunity to continue in their careers even if they default on payments, so that they may keep working towards repaying their student loan debt. This common-sense measure will keep qualified individuals in their fields while allowing them a second chance to get their financial lives back on track.”

Under current Massachusetts law, residents can have their licenses or professional certification revoked, denied, or refused for renewal as a result of defaulting on their student loan debt. Massachusetts is one of only 14 states with such a law. The bill does away with the law and blocks any state agency or board of registration from denying or revoking any license or professional or occupational certificate or registration based on an individual’s default on an educational loan.

The bill does not change the state’s ability to use traditional loan collection tools.

Having previously passed both the Senate and the House of Representatives, the bill goes to the Governor for his consideration.

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