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When Unpaid Student Loan Bills Mean You Can No Longer Work

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Darren
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Published on 01 Dec 2021 / In How-to & Style

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

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