These Two States Will Revoke Your License If You Can’t Pay Back Your Student Loans

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These Two States Will Revoke Your License If You Can’t Pay Back Your Student Loans

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Did you know that in two states not paying your student loans could mean your driver’s license can be revoked?

That’s the harsh reality for those who have had to borrow to pay for college in both Montana and Iowa, where there are laws that allow the state to take away your driver’s license for failure to pay back your student loans.

For many working class families, losing the ability to drive can have dire consequences on employment, childcare and other core pieces of their daily lives. Both states have had these laws on the books for years, with hundreds of workers who have lost their ability to drive and earn a living, but they’ve largely gone unnoticed.

The Montana Department of Justice defines the sanction for borrowers who default on their student loans as an “indefinite suspension until student loan association notifies Motor Vehicle Division of compliance.” Iowa’s Department of Motor Vehicles says much the same, requiring the state “to suspend a person’s driver’s license upon receiving a certificate of noncompliance from the College Student Aid Commission in regard to the person’s default on an obligation owed to or collected by the commission.”

This isn’t the first time in recent history that the inability to pay off a student loan has haunted borrowers long after finishing school. In October 2010, 42 nurses in Tennessee had their licenses suspended for falling behind on their student loans.

The Tennessee Department of Health claimed the suspensions marked a renewed effort to uphold a statute passed in 1999, which states that license penalties can be implemented in the event of defaults on loans.

A troubling number of states, more than 15, have similar laws that allow states to suspend, revoke or refuse to certify professional or vocational licenses and, in some cases, impose a fine, when a worker defaults on student loans. These state laws can impact a wide range of workers, from teachers to attorneys….More Here

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