May 7, 2015

21 states can revoke drivers' licenses for unpaid student loans

Alternet -Thanks to the work of local organizers pressuring lawmakers, Montana residents will no longer have their drivers licenses suspended if they fall behind on their student loan payments. This April, a Montana law that allowed the state to revoke licenses for that infraction was scrapped. However, in at least 21 states, similar laws remain on the books.

The criminalization of low-income Americans’ everyday life has experienced a fair amount of coverage lately in the wake of the Department of Justice's report on Ferguson. That report detailed how steep fees and fines for nonviolent offenses inevitably strapped residents of Ferguson with ridiculous debts. Those debts are then criminalized in a process the report called "illegal and harmful.” If poor people fall behind on their payments, they could even face jail time. Although student debt is not generally interpreted in quite the same way, portions of it have certainly been criminalized. Perhaps nothing showcases this fact more than states’ ability to suspend people’s licenses if they default on their loans. Nearly 30% of US workers now need a license in order to perform their jobs, which means that defaulting on a student loan could effectively mean losing a job.

1 comment:

Jean Grey said...

I don't even see what the state would have to gain from such a law. The student loan program is federal, this debt is not owed to the state. And taking a driver's license away is just going to take away the ability of the individual to go to work and to pay state taxes.