There are protections in place for federal student loans they can take advantage of, such as forbearance, deferment and income-driven repayment. If you are struggling to make the payments on your student loans, it's important to take action before things get out of hand.īorrowers can avoid student loan default by reaching out to their loan servicer at the first sign that they are facing financial difficulty making their payments. Texas is also expected to take up the issue this session, with bipartisan support to change the law. ![]() Georgia, Iowa, Massachusetts and South Dakota also introduced legislation in their 2017-18 sessions to repeal their laws. Louisiana, Tennessee and Texas are considered the more aggressive enforcers, according to NCSL, though Louisiana and Tennessee have both seen recent legislative efforts to abolish their laws revoking licenses for unpaid student debt. Other states that typically don't enforce the legislation include Iowa and Massachusetts. It is worth noting that although Hawaii has had the law since 2002, it has never been enforced. The board estimates that between 90 and 120 licenses have been suspended since November 2016 in Florida. The Florida State Board of Health recently said that over the past two years about 900 health care workers were in danger of losing their license, but the board was able to work out repayment plans with most. One industry that has been especially hit is health care, particularly nurses. And in Texas, more than 4,200 professionals, including nurses and teachers, were in danger of losing their licenses in 2017 because of unpaid student loan debt. ![]() ![]() But from 2012 to 2017, Tennessee officials reported an estimated 5,000 professionals to occupational boards for loan default. Overall, it is difficult to determine exactly how many licenses are actually revoked as those numbers are not being tracked in most states. In Iowa and South Dakota, those in default can also have their driver's and hunting licenses revoked over defaulted student loans. Louisiana (only for defaulted state education loans) Today, 13 states have these types of laws, although enforcement varies widely. More recently, however, many states have changed their laws to protect borrowers from this punitive tactic. In the 1990s, the federal government urged states to use their license revocation abilities to curb the growing tide of student loan default. More than 1 million people default on their student loans every year, according to a report from the Urban Institute, a nonprofit research organization. The training necessary to obtain those licenses can be expensive, and many people are taking out student loans to cover the costs. ![]() Nurses, teachers, hair stylists and travel guides are just a few of the types of professionals who require a license. Today, that percentage has risen to more than 25%. workers were required to hold a license to practice their chosen profession. If people are unable to work in their chosen field - the one they went to school for and presumably took out loans to fund - how can they be expected to pay their debt?Īccording to the National Conference of State Legislatures, during the 1950s only 5% of U.S. A real Catch-22 of student loan debt exists in the 13 states with the ability to revoke a professional license in the case of student loan default.
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