“Give Us Your Money or Your License!” New laws revoke licenses over student default

a reply to: intrepid

No not government issued, but government gaurenteed. Meaning if you default, the loan company goes to the government, and they pay them, then the government then sends the debt to third party collections.

a reply to: OhOkYeah

Yes but how are you to pay if they take away your ability to work and or drive to work? Not every place is accessible by bus in the US.

a reply to: intrepid

It's our money. The government has no money.

What, wage garnishment to pay back federal loans was too difficult an idea, so they're going to opt for removing the ability to get to work to make the money to fork over to them? Not everyone lives near public transit, not everyone can afford a taxi to work (and back) and not everyone can car pool. This is as stupid as it gets.

Seriously dimwitted idea. If they're in default, wage garnishment makes much more sense to get the federal loan repaid.

a reply to: Dimithae
Its not drivers licences,
its professional trade licence like a nursing licence.

a reply to: wasaka

That sucks!

originally posted by: Ultralight
a reply to: intrepid

It's our money. The government has no money.

Ooooookay. Then if it's your money you want it back then, right?

originally posted by: punkinworks10
a reply to: Dimithae
Its not drivers licences,
its professional trade licence like a nursing licence.

It's actually both.

a reply to: crazyewok

I have no college degree, never had a loan for anything except a car, and my business pays everyone a minimum of $18 an hour, except me. I get $14 an hour. My business sustains 23 households .

You don't need a college degree to be successful. Society has convinced us otherwise for their profit.

!

originally posted by: Ultralight
a reply to: crazyewok

I have no college degree, never had a loan for anything except a car, and my business pays everyone a minimum of $18 an hour, except me. I get $14 an hour. My business sustains 23 households .

You don't need a college degree to be successful. Society has convinced us otherwise for their profit.

Yeah thats a whole diffrent topic.


The topic here is the stupidity of revoking ones qulifications which obviously makes things more difficult to earn money if thats what your career is based around.


Yes you can be successfull without a degree but its harder. If my biology degrees got revoked id be up # creek money wise.

Stupid idea if you want people to repay a debt.

originally posted by: crazyewok

originally posted by: OhOkYeah
There must be some consequence or else everyone will do it.

Not saying it's right but people should think twice before signing their life over to a bank. I'd rather be poor and free than have a little more money and owe the bank for the rest of my life.

Taking one ability to WORK and earn any sort of decent money hard helps a debt problem.

That's the whole point. You know they are going to ruin your life, and the government doesn't care. Why sign your entire financial future over to them?

Agreed, the simple answer is to NOT revoke any licence in order to facilitate repayment. However the pink elephant in the room is WHY does continuing education have to cost as much as a small home in the American Midwest?


reply to: crazyewok

originally posted by: DelMarvel
And the for-profit colleges like ITT Tech are duping less savvy low income students in to taking on too much debt.

www.motherjones.com...

This is true. And the sad thing is they will be anymore employable, in fact since credit checks have become important screening they may find themselves worse off.

originally posted by: BlueJacket However the pink elephant in the room is WHY does continuing education have to cost as much as a small home in the American Midwest?

It is almost as if some large entity like a banking cartel wants to keep us perpetually in debt so they can charge an accumulating interest rate on the balance.

originally posted by: jrod

originally posted by: BlueJacket However the pink elephant in the room is WHY does continuing education have to cost as much as a small home in the American Midwest?

It is almost as if some large entity like a banking cartel wants to keep us perpetually in debt so they can charge an accumulating interest rate on the balance.

..... And get them young.

Hehe
yes my point exactly

a reply to: jrod

Here's some reality:

1. For the last 30 years, every child that has been through our educational system has been brainwashed that they have to go to college, and many of their parents have been as well. Meanwhile, minimum wage has lagged, factory jobs have gone overseas, and low-level service jobs have gone part time, while housing and food has skyrocketed. Their parents have them over a barrel and basically say "college or the streets". This is what happened to me.

2. The government can garnish wages, social security when you're old, disability, even food stamps and tax returns, and student loans are essentially unable to be discharged in bankruptcy. They will get their money, there is little to no risk involved, yet they charge exorbitant interest rates (we're talking upwards of 6 and 7 percent) on those loans. If they would bring interest rates down to the ACTUAL risk involved, then maybe people could afford to repay them.

3. Kids at 18, 19 years old can't drink a beer or apply for a credit card without some kind of extenuating circumstances, but they can take thousands and thousands of dollars out in loans. Something just doesn't add up about that.

4. Private loans are given the same sorts of protections that government loans are, which means that private entities bear essentially little to not risk, yet the interest rates on the loans are absolutely astronomical.

5. People say that you can't repossess an education in the same way that you can a house or a car, but this is silly. In the real world, it doesn't matter if you have all the education in the world if you don't have that piece of paper, and this is especially true in fields where college is the most useful and you can't just learn the skills on your own like engineering, nursing, and accounting.

Well I'm glad my debt was wiped clean when the VA put me on 100% disability...

I agree with some posters saying a degree isnt necessary for work, but people in fields like mine, Graphic Design, employers want to see that pretty little paper saying you took this degree course to be hired, they dont care if you can produce a beautiful portfolio showing great work or beautiful web pages, they WANT THAT DEGREE
The sad thing is the colleges fill your coursework with unnecessary classes like psych 101 and stuff like that...

Excellent thoughts...thanks
reply to: AnIntellectualRedneck

originally posted by: Benevolent Heretic
a reply to: wasaka

These aren't "new laws". They've been on the books for decades.

Dozens of Tennessee nurses have had their licenses suspended for ignoring their student loans under new enforcement of a decade-old statute, state officials said.

www.timesfreepress.com...

If they're federal loans, why only Tennessee nurses being sought after in this manner? Is it only nurses? Only people who hold a special license to work in their field?

Taking away a person's ability to earn money and feed their families, especially in these difficult times is wrong. This can mess families up for years. There should be some other way. I thought Obama was passing some new student loan repayment "stuff" to make it easier for people to repay their cumbersome student loans.

a reply to: wasaka

Apparently people either missed this or flat out ignored it for whatever reasons -

The suspensions were the culmination of 18 months' worth of efforts to notify and to work on repayment plans with hundreds of professionals licensed under the Tennessee Department of Health and Department of Commerce and Insurance, said Peter Abernathy, staff attorney for the Tennessee Student Assistance Corp., which provides financial assistance for post-secondary education for Tennessee residents. Some of them had been in default on their loans for years, he said.

Student loans come with the ability to defer payments based on personal situations. Loans can be placed into forbearance until the person has a job that pays enough. Usually forbearance can go from 1 year to 5 years, depending on loan type. In addition to forbearance loans can also be suspended based on financial hardships.

I know this because I have had to use those options in the past. I found that as long as you communicate with your lender they are more than willing to work with you and your situation.