SPRINGFIELD -- In yet another sign of tough economic times, more Illinoisans are losing their business licenses for defaulting on their student loans.
According to a review of state records, the number of pharmacists, cosmetologists and other licensed professionals in the state who have been penalized for not paying their student loans this year is higher than in the previous two years.
The increase makes sense given new data showing the national student loan default rate for loans payable in 2007 jumped to 6.7 percent, up from 5.2 percent.
"It may just be a function of the economy. It's just kind of an indicator," said Sue Hofer, spokeswoman for the Illinois Department of Financial and Professional Regulation, which handles the licensing of a variety of professions.
In the first nine months of 2009, the agency yanked licenses from 461 professionals. That's up from 169 in the first nine months of 2008 and 417 in 2007.
Those affected by the increase range from physical therapists and barbers to nurses and nail technicians.
Hofer said the increase also could be due to improved tracking efforts by the state. Regulators work with the Illinois Student Assistance Commission, which handles educational loans, and the Department of Revenue, which tracks tax returns.
"We are better at matching things. We created a new program that allows the computers to talk to each other," Hofer said.