Friday, November 24, 2017

20 States Take Away Licenses for Student Debt

Few people realize that the loans they take out to pay for their education could eventually derail their careers. But in 19 states, government agencies can seize state-issued professional licenses from residents who default on their educational debts. Another state, South Dakota, suspends driver's licenses, making it nearly impossible for people to get to work. As debt levels rise, creditors are taking increasingly tough actions to chase people who fall behind on student loans. Going after professional licenses stands out as especially punitive. ... "It's like shooting yourself in the foot, to take away the only way for these people to get back on track," said Daniel Zolnikov, a Republican state representative in Montana. People who don't pay their loans back are punished "with credit scores dropping, being traced by collection agencies, just having liens," he said. "The free market has a solution to this already. What is the state doing with this hammer?"

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For some reason I can't cut and paste anything from the article. If this isn't an overt effort to create as many, "customers" as possible for the private prison industry I'm not sure what it is.

Comments

"Fall behind on your student loan payments, lose your job.

Few people realize that the loans they take out to pay for their education could eventually derail their careers. But in 19 states, government agencies can seize state-issued professional licenses from residents who default on their educational debts. Another state, South Dakota, suspends driver's licenses, making it nearly impossible for people to get to work.

As debt levels rise, creditors are taking increasingly tough actions to chase people who fall behind on student loans. Going after professional licenses stands out as especially punitive.

Firefighters, nurses, teachers, lawyers, massage therapists, barbers, psychologists and real estate brokers have all had their credentials suspended or revoked."

#1 | Posted by PunchyPossum at 2017-11-22 05:56 AM

Suspension of a professional license is the 'repossession' of any other secured loan. It has been argued on this website as a possible method to control student loan bankruptcies.
"Another state, South Dakota, suspends driver's licenses, making it nearly impossible for people to get to work." I guess taxis, busses, Uber, Lyft, family and friends all create a 'nearly impossible' barrier to work.

#2 | Posted by Avigdore at 2017-11-22 08:20 AM

I predict debtors prisons are to come.

#3 | Posted by lfthndthrds at 2017-11-22 08:21 AM

And the first bootlicker makes post #2.

#4 | Posted by MrSilenceDogood at 2017-11-22 10:17 AM

#2 must be fired up if they are chumps who only do it once.

A real pro does it 4 or 5 times.

Files numerous times and #2 will vote for you to be president.

#5 | Posted by MrSilenceDogood at 2017-11-22 10:18 AM

I predict debtors prisons are to come.

#3 | POSTED BY LFTHNDTHRDS

No, I don't think so, Corporatist Tyrants aren't that draconian in their style and approach. Debtor prisons would be way too blaring and obvious to the problem. They use teams of the best lawyers and lobbyist to purchase the best legislation money can buy.

Their whole style is very subtle, seemly normal, almost undetectable. They'll put you on the guilt trip; you'll walk away thinking this was all my fault.

#6 | Posted by shane at 2017-11-22 01:38 PM

For the borrowers: Don't borrow the money if your not going to pay it back. Go dig a ditch for a living instead.
For the lenders: Start being clearer in the terms of the loan. Or better yet. Quit lending money to kids.
For the government: Spend more time policing the universities and the kids wouldn't have to borrow so much.

#7 | Posted by bogey1355 at 2017-11-25 12:20 AM

Daniel Zolnikov, a Republican state representative in Montana - a Republican that actually makes at least some sense on the topic.

#8 | Posted by GalaxiePete at 2017-11-25 12:56 AM

#3 | Posted by lfthndthrds

Not unless SCOTUS changes it's mind. They are illegal. Never say never with a loaded court though.

#9 | Posted by GalaxiePete at 2017-11-25 12:57 AM

#7 | Posted by bogey1355

Borrowers: Naive kids mostly who think they will be able to pay back the loans with ease.
Lenders: Quit lending money to kids... Yep.
Government: How about reverse the funding cuts that have been going on for decades? It's actually cheaper to go to some if not most Private Colleges (non-profit) than public universities here in Michigan now. They used to be 3 times the cost. Nephew's tuition at a reputable if not prestigious private college is almost half a mid-level "public" University.

#10 | Posted by GalaxiePete at 2017-11-25 01:01 AM

It has been argued on this website as a possible method to control student loan bankruptcies.

By who? sociopathic, reality disconnected righties?

"Another state, South Dakota, suspends driver's licenses, making it nearly impossible for people to get to work." I guess taxis, busses, Uber, Lyft, family and friends all create a 'nearly impossible' barrier to work.

#2 | Posted by Avigdore

Yeah, lets add more debt load to a person's plate while bitching that they can't pay me back...

Idiot.

#11 | Posted by jpw at 2017-11-25 01:11 AM

umm small trickle now but many are just leaving the good ole USA for Canada, Australia, and points further west for a fresh start. Anywhere where US debt laws don't apply.

Noticed that nobody is making them turn in their passports... yet.

#12 | Posted by Pegasus at 2017-11-25 01:16 AM

If the debt bubble bursts while Trump is in the White House we are going to an epic moment in American political hypocrisy.

#13 | Posted by moder8 at 2017-11-25 01:19 AM

For the borrowers: Don't borrow the money if your not going to pay it back. Go dig a ditch for a living instead.
For the lenders: Start being clearer in the terms of the loan. Or better yet. Quit lending money to kids.
For the government: Spend more time policing the universities and the kids wouldn't have to borrow so much.

#7 | Posted by bogey1355

Dude. You're waaaayy out of touch.

Number 2 expects greedy, immoral scum to pass up the perfect mark in number 1; naive, fresh faced, new to the world TEENAGERS in order to avoid profit.

Yeah right. I guess you're not familiar with the 'Murican business model?

As for number 3, the problem is hardly government policing. It's the treatment of everything in this country as profit-driven entities with the expectation of increased growth or profit, not just consistent profit.

Let's just face it. Our culture of excess, greed and entitlement is permeating everything and it will destroy everything. We're a nation of fat ----- who is unhappy with simply being well off. We have to be MORE well off to be happy. Why else do you think our only unique national holiday is a celebration of glutinous --------- followed by an homage to rabid consumerism?

#14 | Posted by jpw at 2017-11-25 01:24 AM

we are going to an epic moment in American political hypocrisy.

Which means nothing.

Unless you can sustain yourself on smug self-righteousness...

#15 | Posted by jpw at 2017-11-25 01:25 AM

Democracy is an existential threat to conservatism.

#16 | Posted by snoofy at 2017-11-25 08:51 PM

I do not approve of this, but then again I also do not approve of anyone signing a financial contract and then reneging on paying it.

#17 | Posted by MSgt at 2017-11-26 04:24 PM

#17 must not be a Trump voter then...

#18 | Posted by snoofy at 2017-11-26 04:29 PM

Trump can discharge his debt in bankruptcy. And he keeps the business.

Students can't.

#19 | Posted by Sycophant at 2017-11-26 07:29 PM

So true; that is an important double standard between debt and debt. If you're into those kinds of things!

#20 | Posted by snoofy at 2017-11-26 07:34 PM

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