Some States Will Revoke Your License If You Do Not Pay Your Student Debt
As if defaulting on your loans isn’t enough , some states will actually suspend your driver’s license if you don’t pay. Seriously.
The exact license or certificate that can be revoked varies from state to state. For example, some states have your driver’s license revoked, while others take a teaching license, medical license, or even a legal license. Here are some examples:
- California: Licensed Practitioner and Clinical Social Worker
- Iowa: Any state license, including your driver’s license.
- Tennessee: Public School Teaching License (ID) for K-12 Teachers
- Texas: Licensed Dentist, Physician, and Chiropractor.
Legislatures in the states of Montana and Iowa are currently considering bills to remove the suspension of licenses. (Cancellation advocates find them counterintuitive because once your license is suspended, your earning potential drops, as does your ability to pay off student debt.)
The default student loan is defined as 270 days with no repayment . If you are having trouble paying off your debt and are close to default, take the initiative and explore all the student loan assistance options available . Check out the full list of states on Credit.com below to find out what rules apply in your state.
22 States You May Lose Your License Due to Non-Payment of Student Loans | Credit.com