states revoking licenses over student loan defaults

STATES REVOKING LICENSES OVER STUDENT LOAN DEFAULTS FOR FREE
STATES REVOKING LICENSES OVER STUDENT LOAN DEFAULTS LICENSE
STATES REVOKING LICENSES OVER STUDENT LOAN DEFAULTS PROFESSIONAL

I want to thank Senator Eldridge for his attention and determination in seeing this common-sense bill over the finish line.” Spilka (D-Ashland). “Revoking professional licenses that they obtained with a student loan does nothing to solve the problem of loan defaults, and it actively makes the problem worse by preventing new professionals from having the means to pay off their loans. Because student loans are generally not dischargeable in bankruptcy and default can be catastrophic for your credit, it’s crucial to prioritize making your loan payments on time.Īny opinions expressed in this column are solely those of the author.“Student loan debt disproportionately affects young, low-income individuals who are making the kinds of investments in their future that we should be encouraging,” said Senate President Karen E.

STATES REVOKING LICENSES OVER STUDENT LOAN DEFAULTS FOR FREE

You can check your credit reports for free once a year from each of the three major credit reporting agencies at. If you want to see how your student loans are affecting your credit, you can get your free credit scores, updated monthly, on. More From : Repayment Options for Student Loans

If you have federal student loans, as most people who borrow do, there are many options available to you before you’re 270 days past due on your student loan payments (that’s the definition of default): You can apply for income-based repayment or pay-as-you-earn programs, in addition to applying for an extended repayment period, which will raise the cost of your loans in the long run but make them more affordable now. Student loan default trashes your credit, and the loans continue to incur interest and fees as long as they remain unpaid, so getting out of default can be very challenging.

If your state is on the list and you’re at risk of defaulting, you might want to research the details: The professions and licenses affected by suspensions vary by state and cover a wide range of earning potential, but some of them include doctors, social workers, barbers, transportation professionals and lawyers - the lists can be quite extensive.

STATES REVOKING LICENSES OVER STUDENT LOAN DEFAULTS LICENSE

Moffie Funk is making for the bill she introduced to repeal the state’s law that allows driver’s license suspension, Bloomberg reports.Īccording to a list from the National Consumer Law Center, 22 states have laws that enable suspension of state licenses issued to student loan defaulters. Repeal advocates argue that license suspension is a counterintuitive punishment for student loan defaulters, because it may keep them from working, which theoretically enables them to repay their debts. More From : What Happens If I Ignore My Student Loans

Some states suspend licenses needed to practice in certain fields, from health care to cosmetology, though license suspension can extend to driving, too. Even if those repeals succeed, several other states have such laws in place. Two state legislatures ( Iowa and Montana) are considering bills that would repeal laws that allow states to suspend the driver’s licenses of student loan defaulters, Bloomberg reported in a March 25 piece on the topic.

STATES REVOKING LICENSES OVER STUDENT LOAN DEFAULTS PROFESSIONAL

— - Failing to repay student loans has all sorts of terrible consequences, but in some states, more than just your financial well-being is at risk - student loan default could cost you your professional certification or even your driver’s license.

States revoking licenses over student loan defaults