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When Unpaid Student Loan Bills MeanYou Can No Longer Work Twenty states suspend people’s professional or driver’slicenses if they fall behind on loan payments
As debt levels rise, creditors are taking increasingly tough actions to chase people who fall behind on student loans. Going after professional licenses stands out as especially punitive.
When Unpaid Student Loan Bills MeanYou Can No Longer Work Twenty states suspend people’s professional or driver’slicenses if they fall behind on loan payments
As debt levels rise, creditors are taking increasingly tough actions to chase people who fall behind on student loans. Going after professional licenses stands out as especially punitive.
Debra Curry, a nurse in Georgia, fell behind on her student loan payments when she took a decade off from work to raise her six children. In 2015, after two years back on the job, she received a letter saying that her nursing license would be suspended unless she contacted the state to set up a payment plan.
Ms. Curry, 58, responded to the notice immediately, but state officials terminated her license anyway — a mistake, she was told. It took a week to get it reinstated.
“It was traumatic,” Ms. Curry said. She now pays about $1,500 each month to her creditors, nearly half her paycheck. She said she worried that her debt would again threaten her ability to work.
I'm sorry, but in this case I have very little sympathy. She made no attempt to pay anything for 12 years and it wasn't until she was two years back to work that she received the letter. I find it hard to believe that no attempts were made to get her to pay anything during those 12 years, she decided she wasn't going to pay. It is too bad they had to go such extremes to get repaid. The $1,500/month does seem excessive.
That said, we have a generation that is going to be economically crippled by their student loan payments. They need to set up a limit on the percent of a person's income that can be taken for student loans, have it taken out as an automatic payment, much like taxes, and whatever is left forgiven after a certain number of years.
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That said, we have a generation that is going to be economically crippled by their student loan payments. They need to set up a limit on the percent of a person's income that can be taken for student loans, have it taken out as an automatic payment, much like taxes, and whatever is left forgiven after a certain number of years.
they keep saying this, and I keep asking how is this crippling? average student debt is in the $30k range, not much different than a good car or luxury watch. sure it is a hassle to pay off, but it isn't really crippling.
a quick Google search said the average monthly payment was around $300, this isn't exactly crippling. it's about $2/hr salary that is dedicated to the debt, if they can't spare that, they need a new job because they would be screwed even without the debt
people really should learn out how to make more money, instead of blaming the debt for a crippled lifestyle. wiping out the debt would still leave them with a job that still doesn't pay enough to "adult" through life, I.E., they don't have spare money for raising kids, to keep a house, to anything other than buy Starbucks everyday
they keep saying this, and I keep asking how is this crippling? average student debt is in the $30k range, not much different than a good car or luxury watch. sure it is a hassle to pay off, but it isn't really crippling.
a quick Google search said the average monthly payment was around $300, this isn't exactly crippling. it's about $2/hr salary that is dedicated to the debt, if they can't spare that, they need a new job because they would be screwed even without the debt
people really should learn out how to make more money, instead of blaming the debt for a crippled lifestyle. wiping out the debt would still leave them with a job that still doesn't pay enough to "adult" through life, I.E., they don't have spare money for raising kids, to keep a house, to anything other than buy Starbucks everyday
That average includes everyone who has student loans, whether they graduated today or 20 years ago. Between 2004 and 2014, not only did the percentage of students with student loans increase, but the amount they owed almost doubled - well exceeding inflation rates. The changes set about in the early 2000's looked on the surface like a they were supposed to help students but instead set them up for a nasty surprise after they were no longer students. They were great for the banks. In the past student loan interest was subsidized while they attended school or were deferred, that no longer exists. Plus they changed the way the interest is accrued, so many are not even paying down the principle if they make the minimum payment. Student loans are now the second largest monthly debt in most households that have them, only exceeded by mortgages, again a new phenomenon. By the way, if you have a couple that is $60K in debt. That might not seem like much to you, but for a young couple with a child or two it is crippling and will prevent them from being able to buy a home.
Oh, and don't forget, not all those with student loans graduated. At $7/hour that $300 represents over a week's pay.
There is nothing punitive about requiring people to pay their debts, and having consequences for failure to do so.
but it is ridiculously stupid.
Here on my job we have a huge poster in the hallway that says "WHAT IS THE END GAME", meaning what are you working for, what is our "goal". If what you are doing does not help the end game, that is a problem.
Now, let's see these agencies take a persons professional or drivers license. then they not only cannot pay back their loan but now they can no longer support themselves.
And you guys will be the first to complain about you hard working money going to welfare.
LOL what is so laughable about this, is do you notice some of the states that have instituted this stupidity?? Tennessee, Arkansas, Mississippi, Georgia. oh yeah already the poorest states in the nation so let's go ahead and force another whole generation of folks into low paying, poverty jobs AND still no money paid back
Now I do like that one state said that all the had to do is enter into a payment plan. that seem sensible.
This country is stuck on stupid.
Last edited by eliza61nyc; 12-27-2017 at 06:15 AM..
Here on my job we have a huge poster in the hallway that says "WHAT IS THE END GAME", meaning what are you working for, what is our "goal". If what you are doing does not help the end game, that is a problem.
Now, let's see these agencies take a persons professional or drivers license. then they not only cannot pay back their loan but now they can no longer support themselves.
And you guys will be the first to complain about you hard working money going to welfare.
LOL what is so laughable about this, is do you notice some of the states that have instituted this stupidity?? Tennessee, Arkansas, Mississippi, Georgia. oh yeah already the poorest states in the nation so let's go ahead and force another whole generation of folks into low paying, poverty jobs AND still no money paid back
Now I do like that one state said that all the had to do is enter into a payment plan. that seem sensible.
This country is stuck on stupid.
I think the end game is to make sure people who take out student loans understand that there will be consequences for nonpayment. Anyone with half a brain cell is going to seriously reconsider not paying their loans if they know their livelihood is at stake. It's not about punishment, its about discouraging people from not paying their loans. How effective do you think any law would be if everyone knew they wouldn't be punished for breaking it? This is a pretty common pattern with rules/laws. Not sure why you don't understand. You might want to be careful about calling other people's opinions stupid without having spent even 1 second trying to understand said opinion. Pot. Kettle. Black.
Location: Formerly Pleasanton Ca, now in Marietta Ga
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Originally Posted by eliza61nyc
but it is ridiculously stupid.
Here on my job we have a huge poster in the hallway that says "WHAT IS THE END GAME", meaning what are you working for, what is our "goal". If what you are doing does not help the end game, that is a problem.
Now, let's see these agencies take a persons professional or drivers license. then they not only cannot pay back their loan but now they can no longer support themselves.
And you guys will be the first to complain about you hard working money going to welfare.
LOL what is so laughable about this, is do you notice some of the states that have instituted this stupidity?? Tennessee, Arkansas, Mississippi, Georgia. oh yeah already the poorest states in the nation so let's go ahead and force another whole generation of folks into low paying, poverty jobs AND still no money paid back
Now I do like that one state said that all the had to do is enter into a payment plan. that seem sensible.
This country is stuck on stupid.
If the payment plan sounds sensible to you, I'm not understanding why it bothers you. Taking on student debt means you are on a payment plan already. If you don't pay it what other options does a lender have to be repaid?
No one put a gun to the persons head and said you must take out a student loan. Shouldn't there be some accountability for ones choices?
There is nothing punitive about requiring people to pay their debts, and having consequences for failure to do so.
If I go bankrupt, a car up to a certain $ amount is protected.
If I go bankrupt, they can't take my oven, or my sofa, or my bed.
If I'm a carpenter and I go bankrupt, they can't take my tools.
So it makes absolutely no sense to suspend professional licenses for nonpayment. They have plenty of options available to them, including taking tax refunds, garnishing wages, and liening bank accounts.
If I go bankrupt, a car up to a certain $ amount is protected.
If I go bankrupt, they can't take my oven, or my sofa, or my bed.
If I'm a carpenter and I go bankrupt, they can't take my tools.
So it makes absolutely no sense to suspend professional licenses for nonpayment. They have plenty of options available to them, including taking tax refunds, garnishing wages, and liening bank accounts.
Which is a good argument for making student loans be secure loans. People are borrowing tens of thousands of dollars with no collateral. That's a recipe for disaster and something has to be done to encourage people to not walk away from their obligations. Until student loans are vetted liked any other loan, these types of enforcement techniques will be necessary.
In the end, its very simple to prevent this from happening to you: Pay your bills. Or, better yet, don't take out a loan unless you're willing to make the sacrifices required to pay it back. Like maybe waiting until after you've paid back your student loans before raising 6 kids.
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