When Unpaid Student Loan Bills Mean You Can No Longer Work
- 7 years ago
When Unpaid Student Loan Bills Mean You Can No Longer Work
“I don’t like people skipping out on their debts,” Mr. Barth said, “but the state is taking a pound of flesh.”
Mr. Sanderson countered that people did not have to pay off their debt to regain their licenses — entering into a payment plan was enough.
But the state’s licensing board has never done so, said William Nhieu, a spokesman for Hawaii’s Department of Commerce
and Consumer Affairs, because no state or federal student loan agencies have given it the names of delinquent borrowers.
But Jeff Barth, a commissioner in South Dakota’s Minnehaha County, said
that the laws were shortsighted and that it was “better to have people gainfully employed.”
In a state with little public transit, people who lose their driver’s licenses often can’t get to work.
This is the last resort to get them back into payment.”
In Louisiana, the nursing board notified 87 nurses last year
that their student loans were in default and that their licenses would not be renewed until they became current on their payments.
“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.
Many student loans are backed by guarantees by the state or federal government, which foot the bills if borrowers default.
People who don’t pay their loans back are punished “with credit scores dropping, being traced by collection agencies, just having liens,” he said.
“I don’t like people skipping out on their debts,” Mr. Barth said, “but the state is taking a pound of flesh.”
Mr. Sanderson countered that people did not have to pay off their debt to regain their licenses — entering into a payment plan was enough.
But the state’s licensing board has never done so, said William Nhieu, a spokesman for Hawaii’s Department of Commerce
and Consumer Affairs, because no state or federal student loan agencies have given it the names of delinquent borrowers.
But Jeff Barth, a commissioner in South Dakota’s Minnehaha County, said
that the laws were shortsighted and that it was “better to have people gainfully employed.”
In a state with little public transit, people who lose their driver’s licenses often can’t get to work.
This is the last resort to get them back into payment.”
In Louisiana, the nursing board notified 87 nurses last year
that their student loans were in default and that their licenses would not be renewed until they became current on their payments.
“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.
Many student loans are backed by guarantees by the state or federal government, which foot the bills if borrowers default.
People who don’t pay their loans back are punished “with credit scores dropping, being traced by collection agencies, just having liens,” he said.