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1. #STATES REVOKING LICENSES OVER STUDENT LOAN DEFAULTS LICENSE#
2. #STATES REVOKING LICENSES OVER STUDENT LOAN DEFAULTS PROFESSIONAL#
3. #STATES REVOKING LICENSES OVER STUDENT LOAN DEFAULTS FREE#

#STATES REVOKING LICENSES OVER STUDENT LOAN DEFAULTS FREE#

While bankruptcy is not the answer in every situation, it can help many people get back on their financial feet and free themselves from the burden of unsustainable debt. One way to get out of debt faster may be through bankruptcy. Warren called the revocations “wrong and counterproductive.” If the bill becomes law, states would have two years to comply.ĭebt can be a terrible burden and one that can lead to unexpected consequences, as the above article shows. Rubio said revoking licenses for student loan borrowers “makes no sense” while Sen. Democratic Senator Elizabeth Warren and Republican Senator Marco Rubio recently introduced a bill that would prevent states from denying, suspending, or revoking licenses for unpaid federal student loans. Indeed, the issue has reached Washington and resulted in a rare bipartisan effort to make the practice of revoking licenses because of unpaid federal student loans illegal. While supporters of that practice say that revoking licenses helps pressure people into repaying their loans, critics point out that it makes little sense to deny people the right to work and thus the ability to pay back their loans. Tennessee, in particular, is facing a nursing shortage, yet a number of nurses have lost their nursing licenses in the state because they have defaulted on their student loans. It is ironic that people who are clearly struggling to repay their student loans would be denied the right to work. It is unclear how many of those people eventually had their licenses revoked because that figure is not tracked.īipartisan effort to make revocations illegal

#STATES REVOKING LICENSES OVER STUDENT LOAN DEFAULTS PROFESSIONAL#

Between 20, 5,400 people in the state were reported to professional licensing agencies for unpaid student loans. Tennessee stands out as being one of the most aggressive states in the country when it comes to revoking professional licenses in this manner.

The newspaper found 8,700 cases nationwide of borrowers losing their credentials to work due to unpaid student loans, although the true figure is likely much higher because many states don’t keep track of how many licenses are suspended or revoked due to defaulted student loans. Tennessee is one of the most aggressive states in the country for revoking licenses for unpaid student loans.Īs the New York Times reports, there are 20 states that suspend or revoke driving and/or professional licenses due to unpaid education debts. What many people don’t realize, however, is that unpaid student debt can lead to the loss of one’s driving or professional license. That figure makes student debt the second biggest form of consumer debt in the country behind only mortgages.

collectively owe more than $1.5 trillion in student loans. As Forbes reports, 44 million borrowers across the U.S. Student debt in the United States has reached crisis levels. In Tennessee, people who default on their student loans are at risk of losing their licenses.

#STATES REVOKING LICENSES OVER STUDENT LOAN DEFAULTS LICENSE#

In Tennessee, student debt can mean the loss of a license