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Federal Student Loan Default


295-16-.01 Federal Student Loan Default. 

(1) A person holding a current license issued by a professional licensing board as 

defined in O.C.G.A. § 43-1-1(3) may have his/her license indefinitely suspended 

if he/she is found to be in nonpayment status or default or breach of a repayment 

or service obligation under any federal educational loan, service conditional loan 

repayment program, or service conditional scholarship program in accordance 

with the procedures set forth herein. 

(2) After receiving a certification from a federal agency that the licensee is in 

nonpayment status or default or breach of a repayment or service obligation under 

any federal educational loan, service conditional loan repayment program, or 

service conditional scholarship program, the professional licensing board shall 

provide written notice to the licensee via certified or registered mail at the 

licensee’s address of record.  The notice shall contain the following: 

(a) The professional licensing board’s intended action to suspend 

the license; 

(b) The licensee’s right to request an appearance before the 

professional licensing board; 

(c) Notification that the request for an appearance must be in writing 

and must be received by the board within thirty days of service 

of notice; and 

(d) The address and telephone number of the board. 

(3) If the licensee does not request an appearance before the professional licensing 

board within thirty (30) days, the licensee waives the right for an appearance 

before the professional licensing board and the license will be suspended. 

(4) If a request to appear is timely received by the professional licensing board, the 

suspension of the license shall be stayed pending the licensee’s appearance before 

the professional licensing board. 

(5) Upon receipt of the request for an appearance before the professional licensing 

board, the professional licensing board shall notify the licensee in writing of the 

date and time of the appearance via certified or registered mail sent to the 

licensee’s address of record.  At this appearance, the licensee may present 

evidence only on the following issues: 

(a) Whether the licensee is a party named in a federal educational loan 

agreement, service conditional loan repayment agreement, or service 

conditional scholarship agreement;  

(b) Whether the licensee is in default of the loan obligation, service 

conditional loan repayment or scholarship obligation; 

(c) Whether the licensee is repaying the loan obligation, service 

conditional loan repayment or scholarship obligation, in a manner 

satisfactory to the federal agency involved. 

(6) Within fourteen (14) working days after the licensee’s appearance before the 

professional licensing board, the board will issue its decision.  The board will 

mail a copy of its decision to the licensee by certified mail or registered mail to 

the licensee’s address of record. (7) If the license is suspended, the licensee may not practice during the period of 

suspension. 

(8) A person whose license was suspended for being in nonpayment status or default 

or breach of a repayment or service obligation under any federal educational loan, 

service conditional loan repayment program, or service conditional scholarship 

program may apply to have the suspension lifted.  In order to have the suspension 

lifted, the licensee must: 

(a) Request in writing to the professional licensing board that the 

suspension be lifted; 

(b) Provide the professional licensing board a written release from 

the federal agency originally certifying that the licensee is in 

nonpayment status or default or breach of a repayment or service 

obligation under any federal educational loan, service 

conditional loan repayment program, or service conditional 

scholarship program; 

1. The release must indicate that the licensee is making 

payments on the loan or satisfying the payment or service 

requirements in accordance with an agreement approved by 

the federal agency. 

(c) Demonstrate to the satisfaction of the professional licensing 

board that the license has been timely renewed and, other than 

the suspension provided by this rule, is otherwise in good 

standing; and 

(d) Submit a notarized declaration that all continuing education 

requirements, if any, for the entire suspension period have been 

met. 

(9) Upon compliance with paragraph (8), the professional licensing board shall lift 

the suspension on the license; however, the professional licensing board may 

impose any conditions on the lifting of the suspension that it deems necessary to 

protect the public. 

(10) If the licensee fails to timely renew his license during the period of suspension, 

the license shall be considered to be revoked by operation of law and subject to 

reinstatement in the sole discretion of the professional licensing board.  The 

person who held the lapsed suspended license must comply with the professional 

licensing board’s rules for reinstatement, pay any reinstatement fee, and provide 

the professional licensing board with a written release from the federal agency 

originally certifying that the licensee is in nonpayment status or default or breach 

of a repayment or service obligation under any federal educational loan, service 

conditional loan repayment program or service conditional scholarship program.  

The release must indicate that the licensee is making payments on the loan or 

satisfying the payment or service requirements in accordance with an agreement 

approved by the federal agency.  It will be within the discretion of the 

professional licensing board whether to reinstate the license. 

Authority O.C.G.A. §§ 43-1-29, 43-1-19, and 50-31-3. 


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