Behind On Your Student Loans? These States Will Take Your Driver’s License

Friday, April 3, 2015
By Paul Martin

by Tyler Durden

Talk of across-the-board debt cancellation and loss socialization notwithstanding, the trillion-dollar plus pile of student loan debt America’s proud college graduates are now saddled with is a big problem. It represents a third of consumer non-housing related debt and unfortunately for distressed borrowers, isn’t generally dischargeable in bankruptcy. Between the inexorable rise in college tuition and the fact that $15-20 billion in student loan-backed ABS deals are still going off each year, this isn’t a problem that’s going away anytime soon — unless of course The White House wipes the slate clean in an effort to prove yet again that the world has generally forgotten that “cancelling” one person’s liability everywhere and always impairs someone else’s asset because, well, that’s the way math works.

But before you think about holding out for a taxpayer government-sponsored bailout on your student loans, you may want to check the laws in your state because as it turns out, you may end up losing your driver’s license or worse, your barber’s license. Here’s more via Bloomberg:

The little-known laws exist in at least 22 states and have been on the books in some states since as far back as 1990. Advocates for repealing them say they have real consequences for people who cannot make a dent in their student debt.

“It’s the most inappropriate consequence, because you are taking away their ability to eventually pay [their loans] back,” says Moffie Funk, the Montana state representative who sponsored the bill. In Montana, where there is little public transportation to speak of, driving is the only way most people can get to the jobs they need to repay their debt, Funk says.

The Rest…HERE

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