Just another reason to avoid taking out student loans if you can do it.

Red Alert Politics reports.

In 21 states, student loan default penalty is drivers license suspension

Student loan debt can’t be discharged in bankruptcy, and now it can get people fired.

In October, almost 60 health professionals in Tennessee had their licenses suspended for falling behind on student loan payments, according to Nashville’s WKRN.

Under Tennessee law, when a health professional falls into default on a loan, the responsible government entity “shall suspend, deny or revoke the license of, or take other such appropriate disciplinary action, against any person” who has defaulted.

That penalty hits regardless of circumstance. For a nurse who has become sick, incapacitated, or lost a job, the Tennessee Department of Health enforces the license suspension.

Tennessee, however, isn’t alone in the practice.

Since 1990, at least 21 states have laws that suspend or revoke occupational and driver’s licenses for student debtors who fall into default, according to Bloomberg. In April, Montana repealed the law that previously allowed license revocation. An attempt in Iowa to repeal its law failed. In Iowa, more than 900 driver’s licenses had been suspended in the state by 2012, though they have since been reversed.

Health professionals, veterinarians, attorneys, engineers, psychologists, and any profession that requires a worker to have a license, certificate, registration, or approval to legally work in the state can face penalties, depending on the state.

In Florida, the worker must also pay a fine “equal to 10 percent of the defaulted loan amount.” Not only does the license suspension prevent someone from legally earning income to pay back the loan, but it adds another financial burden to someone in an already-difficult position.


 
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