This is the second time they have proposed this type of legislation. Marco Rubio (R-FL) and Elizabeth Warren (D-MA) recently partnered to introduce the Protecting Job Opportunities for Borrowers (Protecting JOBs) Act (S.609). State policies revoking or suspending the licenses of delinquent student loan borrowers affect a surprising number of workers. A bipartisan effort in the US Senate now seeks to prevent states from denying borrowers the ability to work because of delinquent loans. Iowa’s laws allow the revocation of all state-issued licenses, like driver’s licenses, while South Dakota can revoke driver’s, hunting, and fishing licenses, along with camping and park permits.įor many Americans, the opportunity to work in a specialized field was the reason they opted to go into debt in the first place. In 2017, The New York Times reported there were “at least 8,700 cases in which licenses were taken away or put at risk of suspension in recent years” due to student loan defaults, “although that tally almost certainly understates the true number.”įourteen states currently assert their authority to rescind occupational licenses over unpaid loans: California, Hawaii, New Mexico, Texas, Louisiana, Mississippi, Georgia, Florida, Arkansas, Minnesota, Tennessee, Massachusetts, Iowa, and South Dakota, Iowa, and South Dakota. The degree of enforcement of these laws varies from state to state, but those with such rules nonetheless claim the right to revoke professional licenses. How fair is that?” she told local ABC affiliate WFTS last month. “Your license is gone, your livelihood's gone, the care of your patients is gone. Denise Thorman, a former certified nursing assistant in the state, lost her license last year because she fell behind on her payments. In one recent example, last month 900 Florida health care workers received notices from the Florida Board of Health notifying them that if they didn’t repay their student loan debt, they would have their licenses suspended. With over 8.9 million recipients of federal student loans reportedly in default and as much as 40 percent of student loan borrowers at risk of defaulting on their payments by 2023, these restrictive policies only make it more difficult for them to work their way out of debt.ĩ00 Florida health care workers received notices from the Board of Health notifying them that if they didn’t repay their student loan debt, they would have their licenses suspended. This practice applies to a wide range of professions, from massage therapists, barbers, and firefighters to psychologists, lawyers, and real estate brokers. Millions are struggling to repay money they borrowed for an education they were told would set them up for financial success, but many states across the country have barred individuals from working if they have not yet paid off their loans.įourteen states across the country currently impose policies to suspend, deny, or revoke occupational licenses from borrowers, preventing them from working and, ultimately, fully paying off their loans. Student loan debt is one of the biggest burdens to young Americans, recently ballooning to $1.5 trillion and topping car and credit card debt.
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