Back to Blog
![]() ![]() Moffie Funk learned that that was a potential consequence, she says she felt embarrassed. (a) Any person seeking to act within the state as a student loan servicer must apply for a license in a form and manner specified. ![]() That's putting a lot of people's livelihoods at risk.īut Montana, where Lindley lives, is rolling those sanctions back. The percentage of Americans defaulting on their student loans has more than doubled since 2003. Bipartisan legislation was reintroduced last month in Congress to prohibit states from revoking or denying professional licenses solely because of default on a federal student loan. In 22 states, defaulters can have the professional licenses they need to do their jobs suspended or revoked if they fall behind in their student loan payments, licenses for things like nursing or engineering. But had she defaulted longer, the state of Montana could have revoked her driver's license. engineers, used car dealers, cosmetologists, nurses, etc.). borrowers in student loan default and 30 of the American. That was motivation enough for Lindley to figure out ways to make her payments. The Secretary of States office has the authority to suspend the professional licenses (i.e. Laws that revoke licenses after default are uniquely cruel, since defaulters usually don't have a college degree to fall back on. In 22 states, people who default on their student loans can have professional licenses suspended or revoked. "There was a time where I defaulted on my student loans enough that I never was sent to collections, but just long enough to, honestly, ruin my credit." ![]() The Tennessee Department of Health claimed the suspensions marked a renewed effort to uphold a statute passed in 1999, which states that license penalties can be implemented in the event of defaults on loans. State Administration and Regulatory Oversight. Montana could soon dial back laws that allowed defaulters to have their professional and drivers licenses revoked after failing to pay back debt. In October 2010, 42 nurses in Tennessee had their licenses suspended for falling behind on their student loans. Suspending or revoking their professional licenses severely undercuts their ability to do this - thus trapping some borrowers in default, with no realistic way out."Removing my driver's license, you just created one more barrier for me being a productive citizen in my community."įresh out of school, Lindley says there were times when she had to decide whether to pay rent, buy food or make her student loan payments. An Act prohibiting license revocation for student loan default. For borrowers who are struggling financially, obtaining and maintaining stable, gainful employment is often critical to have any shot of resolving their student loan situation and getting back into good standing again. Tennessee r eported over 5,000 people to professional licensure boards over a five-year period, many of whom lost their licenses. ![]() Florida, for instance, has suspended the licenses of nearly 100 health care workers as a result of student loan defaults. At least 20 states have laws on the books that allow for professional licenses (such as teaching licenses, law licenses, and medical licenses) to be denied, suspended, or revoked if the borrower has defaulted on their student loans. One of the lesser-known consequences of student loan default involves the suspension of professional licenses. In 22 states, defaulters can have the professional licenses they need to do their jobs suspended or revoked if they fall behind in their student loan payments. ![]()
0 Comments
Read More
Leave a Reply. |