18 Jan 2015

These States Will Revoke Your Driver’s License If You Can’t Pay Back Student Loans

Most of the nation is unaware of it, but there are two states which will take your driver’s license away if you do not pay your student loans.
Alums in both Montana and Iowa, face laws that allow the state to revoke driver’s licenses if the individual is unable to pay back their loans.
This has obvious consequences for potential employment, as well as childcare, creating a downward spiral of self-perpetuating poverty.
The Montana Department of Justice says that those who default on their student loans face “indefinite suspension until student loan association notifies Motor Vehicle Division of compliance.”
The Department of Motor Vehicles in Iowa parallels this legislation almost identically. The law says that the State will “suspend a person’s driver’s license upon receiving a certificate of noncompliance from the College Student Aid Commission in regard to the person’s default on an obligation owed to or collected by the commission.”
But the group Jobs With Justice notes that in October 2010, there were also 42 nurses in Tennessee who similarly had their licenses suspended for nothing other than falling behind on their student loans.
The irony of all of this is that taking away the ability to drive makes student loan defaulters even more certain to fall behind on payments.


  1. Time for student bail out...

  2. Work is overrated...

  3. Thebes de Hippie18 January 2015 at 13:40

    Time for (hopefully bloodless) revolution.

  4. Do they get a hearing at least in like a real courtroom? When the blowback for these micreant government thieves happens, i want a front row seat.

  5. Like credit card debt, student loan debt is luxury debt and i have no sympathy for these crooks. Take away their DL and if caught driving hit them with fines and jail.

  6. Courtroom? They're not charged with a crime although they could be if they continue to not pay their debt. Not paying student loan debts is the same as stealing.

  7. When I got my student loans in the 70s, student loans were dischargable in bankruptcy court after having made payments for 5 years. They sure nipped that little loophole in the bud. Fortunately they can't put all the unemployed college graduates with outstanding student loans in jail.

  8. I disagree, students like myself often need the money for classes to try and find work in this wonderful economy. We are up against few jobs and ever higher rates of foreign competition. Not to mention the way colleges swear there will be work for you when you finish and sell students on using loans. There is much more to it than a knee jerk reaction.
    I hope you never face the kind of financial stress so many are dealing with right now. It would change your outlook dramatically.
    Most students want to pay back their loans and try to, but the realities we are dealing with make it impossible sometimes. And there is no way to predict in advance if you will be able to pay off the loan. We all hope so and try to.

  9. I can see taking out loans if you're trying to become a doctor or engineer say. But students getting degrees in useless liberal arts crap like theology or sociology are not gonna get a job and they know it. They are there to party for 4 years and i say no mercy.

  10. I see you base a lot of your thinking in this case on anecdotal hearsay evidence. Most of your bureaucrats who are overpaid and useless have degrees in liberal arts of one sort or another, and you still pay them to make rules for you to live by.
    A lot of those who pursue the useless easy degrees are from wealthy families and do not intend to work anyway, college is a daycare for these adolescents.
    The division between those who know the whole educational system is a sheep factory and a money making scam and those who still believe is a real problem.
    But hey blame the victim, that's what we do !!

  11. What's next, and who's next? What goes around comes around, and when government operates like this, don't be surprised if the government revokes your license on some pretext or other.

    These laws are unconstitutional and overturned. The residents of these states should remember the representatives who gave them this law and be sure to thank them properly on election day.