As if the crushing debt and the havoc on your credit score wasn’t enough, some states have laws that enable yet another punishment to those who can’t pay back their student loans.
These little-known laws in 22 states allow authorities revoke driver’s licenses or state-issued professional licenses when people fall behind on their student loan payments, according to theNational Consumer Law Center. The latest federal data shows that about one-third of all student borrowers are delinquent on their payments, so these laws are definitely something to worry about.
The professions and licenses affected by these revocations vary by state, but can include everything from your driver’s license to licenses for doctors, social workers, barbers, and lawyers.
1. Alabama
2. Alaska
3. California
4. Florida
5. Georgia
6. Hawaii
7. Illinois
8. Iowa
9. Kentucky
10. Louisiana
11. Massachusetts
12. Minnesota
13. Mississippi
14. Montana
15. New Jersey
16. New Mexico
17. North Dakota
18. Oklahoma
19. Tennessee
20. Texas
21. Virginia
22. Washington
Two states, Montana and Iowa, are considering bills to change these laws, Bloomberg reported.
“It’s the most inappropriate consequence, because you are taking away their ability to eventually pay [their loans] back,” Moffie Funk, the Montana state representative who sponsored the bill, told Bloomberg.
“You’re making criminals out of people who, for a multitude of reasons, have defaulted on their student loans. It’s so punitive and so demeaning.”
