Student debt is the country’s largest source of debt, outside of mortgages, and creditors are aggressively pursuing delinquent borrowers. Did you know, in the state of California and 19 other states, government agencies can revoke state-issued licenses from residents who fail to make student loan debt payments?
Drastic Repayment Measures
If you have fallen behind on student loan debts, creditors are taking more desperate actions to get paid. While it seems a bit improbable that taking away someone’s license to practice their profession and subsequently earn money will help creditors settle debts, it is happening. In South Dakota they can even suspend your driver’s license.
Going after professional licenses is just one of many ways creditors attempt to get funds from delinquent borrowers. More common practices include garnishing wages, putting liens on property and seizing tax refunds, all of which can impact your credit rating
Government Approved Debtors’ Prison
A recent New York Times article outlined the practice. Supporters reason that delinquent borrowers will find away to settle the debt if they want to keep practicing in their field. The opposition argues that these hard core practices prevent gainful employment.
The scope of impacted professionals is hard to comprehend because so many careers require a state license. The California Department of Consumer Affairs has a website that allows consumers to verify a license by searching for companies or individuals licensed through the state. The site has over 40 career categories, but doesn’t list any government civil servant positions, such as firefighters, police and teachers, who would also be impacted.
If you are facing the loss of your license for educational loan delinquency, it is important to take action to stop the revocation. You worked hard to earn the right to practice in your chosen field and should not have that opportunity taken away by lenders. Call a professional license defense lawyer today!