Buzz
As if defaulting on your loans wasn’t bad enough, some states are going as far as suspending your driver's license if you don’t settle your debt. It’s unbelievable.
The types of licenses or certifications that may be taken away depend on the state. Some states might suspend your driver's license, while others could take away your teaching, medical, or legal licenses. Here are a few examples:
California: Health care practitioner and clinical social worker license
Iowa: Any state-issued license, including your driver's license
Tennessee: Public school teaching license (credential) for K-12 teachers
Texas: Dental, medical, and chiropractic examiner license
State lawmakers in Montana and Iowa are currently considering legislation to repeal license suspensions. Advocates for repeal argue that such measures are counterproductive, as losing a license hurts your income potential, making it harder to pay off student debt.
A student loan is considered in "default" after 270 days without any payment. If you're struggling to keep up with your payments and are nearing default, take action by exploring all the available student loan assistance options. Visit Credit.com for a full list of states and their specific rules.
Photo by Steven Polunsky.
