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

originally posted by: camain
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.

Student loans are the only form of debt that cannot be dispatched through bankruptcy.

Student loans are emphatically encouraged by "public service announcements" at taxpayer cost.

Student loans, when unpaid, are directly pursued by the IRS.

Student loans drive the cost of education up while simultaneously driving the quality of education (as well as the practical utility) down.

Some of the many lessons that can be learned from these facts are:

Don't take out student loans.

Eliminate federal government loan guarantees to lenders.

Insist that the federal government cease and desist in participating in and, indeed, masterminding these hostile acts against taxpayers and impressionable students alike.

originally posted by: BlueJacket
Wow....debter prison next? Im not sure what to say...but it sure seems the "Robber Barons" of the 19th and early 20th century are making a move.

a reply to: wasaka

We already have debtors prison which happens to apply directly to students (and anyone else of course) who don't repay their debts to the IRS.

Granted, it would only be implemented in the more extreme cases but, nobody can say that the IRS won't imprison you for not paying whatever figure they demand.

Another thing to note as I think some overlooked it.

The licenses in question are their nursing license and not their drivers license.

Yeah...because lord knows we have too many people working as nurses in this country.

Folks, you elect them. People actually fight and argue over them, like they aren't just pigs wearing lipstick.

a reply to: OhOkYeah

With every type of debt other than student loan debt, you can have it discharged through bankruptcy.

After the student loan reforms around 2000, that little feature was removed from them. The claim was that there was an epidemic of people racking up huge amounts of debt and then discharging it upon graduation. However this was happening in much less than 1% of cases with almost no one going into student loan default. After the reforms the default rate skyrocketed.

The loans these days are intentionally designed to make as many people as possible default because it is more profitable to do so.

originally posted by: intrepid
OK, I have a question. Are student loans in the States government issued?

Yes. The federal government took over the student loan business. They are the ones who provide almost all of them at this point.

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.

So you get $29,120 a year while your employees get $37,440 per year. That puts both you and them well into the bottom half of incomes in the US. Neither of you are even above the 40th percentile.

I wouldn't call that successful (not that I have much room to talk, I'm much lower on the income scale than that), or at the very least it's certainly not a ringing endorsement for skipping college.

Maybe we should revoke their right to govern, until they pay their debt. It's only in the trillions.

a reply to: Aazadan

I have a friend who is a high school drop out with a GED who makes ~$80k in Florida. He joined an apprenticeship to operate cranes. He had to devote time for training but got paid ok as an apprentice. It took him about 3-4 years to make journeyman. No loans required.

However my friend is one of the hardest workers I know and that is important. It does seem like work ethic is something that too many Americans simply do not have. I suppose when one is forced to work to pay off student loans can create a bit of worker apathy.

time.com... guess my state montana is trying to get rid of the practice but 22 states do such things (take lisences from those that owe student loan debt) it seems counter productive to take away peoples ability to make money when they owe money,like when they suspend the licensees of people who owe back child support least thats my take on it

originally posted by: jrod
a reply to: Aazadan

I have a friend who is a high school drop out with a GED who makes ~$80k in Florida. He joined an apprenticeship to operate cranes. He had to devote time for training but got paid ok as an apprentice. It took him about 3-4 years to make journeyman. No loans required.

It's all a numbers game. 80k/year is the 73rd percentile which ranges from $79,838 to $83,010. Here's the education breakdown for those in that income range.
Less than 9th grade - 1 in 226
More than 9th, less than 12th - 1 in 59
HS graduate or GED - 1 in 6.5 (2 in 13)
Some college, no degree - 1 in 6
Associates Degree - 1 in 11
Bachelors Degree - 1 in 3
Masters Degree - 1 in 5
Professional Degree - 1 in 29.5 (2 in 59)
Doctorate Degree - 1 in 27

Additionally, being in the south is an advantage. 37% of all salaries in this range are southern states (it's broken up by northeast, midwest, south, west)

originally posted by: greencmp

originally posted by: camain
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.

Student loans are the only form of debt that cannot be dispatched through bankruptcy.

Meaning, of course, that you have lots of kids, many of them middle and lower class, getting locked into debt at age 18-22 before they really have a clue while experienced adults, many of them wealthy, are still able to manipulate the system and walk away from debts via bankruptcy--even repeated times.

a reply to: crazyewok

I disagree. You have to work harder, sure, but you don't need a degree, you WANT one to make money, which you CAN do without a degree.

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.

We are heading for the reestablishment of debtors prisons.

I believe the people deserve bail-outs/bail-ins regardless of their poor judgement because they are too big to fail. It's just pieces of paper any way. How does my government continue to operate with 18 trillion and counting in debt? Why can one not continue to operate if your debt is no way near the debt of my country's? How can you pay off your debt with federal reserve notes that in itself is a debt instrument for public or private debt use only? Are we supposed to play stupid and not notice this scam occurring? Are we really that ignorant and just going to continue to play their game because your trapped into slavery to provide shelter, comfort, and sustenance for your loved ones? Hey, how about all that foreign aid we give out in currency, weapons, resources, and et. cet. be applied to the people instead? Yet, I'd still have to warn you do not accept any loans from a bank/corporation at least. Of course pay your friends and family off, but who cares about the banks' needs or wants. Why is it the same blood line holding the white house any ways? I try to ignore it, but it's slapping us in the face daily...

What happened to wage garnishment? For those who are self-employed consultants filing a 1099 they could withhold their tax return if there are no weekly/bi-weekly wages to garnish. But for those not self-employed why don't they just take a specified (allowed by law) percentage out of each paycheck, and if the person is unemployed, well then they can't pay until they start working again. I am not saying it's right, but it is reality. If they don't have a job and therefore don't have the money, they don't have it -- can't squeeze blood out of a stone.

Then when they do get a job they will have the ability to start paying, even if it takes them 30 years and they're unable to buy a house or own a nice car or whatever.... so be it. So for as long as it takes they could just continue garnishing their wages. But revoking one's license isn't going to solve anything. It's ineffective and stupid.

Glad I went to college in the late 1970's when things were more reasonable. I made my last student loan payment 10 yrs after graduation. It wasn't easy, but was nothing like today... nowadays it's practically impossible. If I were a young person today I'd know that I wouldn't be able to re-pay it and wouldn't be able to go. BTW, a few former college classmates who re-paid their undergraduate loans but didn't re-pay their graduate school student loans back then, are now having it deducted out of their monthly SS retirement benefits...with interest and penalties...from the 1980's.

a reply to: BlueJacket
already here a 22 year old neighbor was just arrested foor a 750 dollar judgement and last week my ex gf had 2 deputies show up at her door because she was 2 months behind on a 1000 dollar loan she got 2 years ago she can up with 120 she was behind so they didn't take her to jail.

Look I have three kids.
Two have graduated with no debt through working co-op jobs.
Both earn more than I do.
The third is following right behind.

Many choose ignorant degree's.
Interior Design? A lot of jobs there.

There was a federal law passed that would have required schools to post their students job stats post degree.
But it was indefinitely postponed during the financial crisis in a effort to keep schools open and retain jobs in the teaching sector.

If the government allowed a discharge in bankruptcy everyone would do it right after graduation.
Remember the bankruptcy craze a few years ago? Had to do something about it.

Colleges have to have the useless courses otherwise graduates would not be well rounded.
Search Youtube for stupid Americans. Can't name a country that begins with "U".

originally posted by: wasaka
wakeupfromyourslumber.com...
"Whether it was whipping up mass fear in the US about the bogeyman of communism...

You DO realize that what your OP describes is exactly the sort of thing that gave communism a bad rap... right ?