Don't get behind on your student loans:
Imagine not having the money to pay your monthly student loan bill and having your driver's license (or professional license) suspended as a result. That nightmare scenario is a reality for many Americans.
In fact, there are 22 states in which you can lose your occupational or driver's license if you are more than 270 days behind on paying your student loans, Bloomberg reports.
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But some states are trying to get rid of laws that allow authorities to suspend driver's and professional licenses from defaulted student debtors. The Montana Legislature just approved a bill to repeal a statute enabling the controversial practice.
From our Solutions Center: Help with student loan debt
Montana has suspended 92 driver's licenses from defaulted borrowers since 2007, Bloomberg said.
"It's the most inappropriate consequence, because you are taking away their ability to eventually pay [their loans] back," says Moffie Funk, the Montana state representative who sponsored the bill.
http://www.moneytalksnews.com/behind-student-loans-these-states-you-may-get-your-drivers-license-yanked/
and
As if losing your driver’s license isn’t bad enough, some states suspend professional licenses of borrowers who defaulted, taking away their right to work, Bloomberg said.
In Tennessee, for example, the state’s student loan guaranty agency, the Tennessee Student Assistance Corporation, has suspended more than 1,500 professional licenses held by people who defaulted on their student loans. Nurses aides, teachers and emergency medical personnel have been among the most likely to lose their licenses.[/QUOTE]
While Montana’s bill now awaits the governor’s approval, Iowa’s bill to repeal the consequence stalled because of a procedural obstacle.
This post was edited on 4/4 6:13 AM by BlueRaiderFan
Imagine not having the money to pay your monthly student loan bill and having your driver's license (or professional license) suspended as a result. That nightmare scenario is a reality for many Americans.
In fact, there are 22 states in which you can lose your occupational or driver's license if you are more than 270 days behind on paying your student loans, Bloomberg reports.
Ads by Google
Local Medical Programs
Local Hands-On Training Classes. Financial Aid Available. Learn more
southcollegetn.edu/Medical_Classes
But some states are trying to get rid of laws that allow authorities to suspend driver's and professional licenses from defaulted student debtors. The Montana Legislature just approved a bill to repeal a statute enabling the controversial practice.
From our Solutions Center: Help with student loan debt
Montana has suspended 92 driver's licenses from defaulted borrowers since 2007, Bloomberg said.
"It's the most inappropriate consequence, because you are taking away their ability to eventually pay [their loans] back," says Moffie Funk, the Montana state representative who sponsored the bill.
http://www.moneytalksnews.com/behind-student-loans-these-states-you-may-get-your-drivers-license-yanked/
and
As if losing your driver’s license isn’t bad enough, some states suspend professional licenses of borrowers who defaulted, taking away their right to work, Bloomberg said.
In Tennessee, for example, the state’s student loan guaranty agency, the Tennessee Student Assistance Corporation, has suspended more than 1,500 professional licenses held by people who defaulted on their student loans. Nurses aides, teachers and emergency medical personnel have been among the most likely to lose their licenses.[/QUOTE]
While Montana’s bill now awaits the governor’s approval, Iowa’s bill to repeal the consequence stalled because of a procedural obstacle.
This post was edited on 4/4 6:13 AM by BlueRaiderFan
