States Suspend Driver’s Licenses For Defaulted Student Loans
True or False. Your driver’s license can be suspended if you fail to pay your student loans.
True – If you live in Montana or Iowa.
These states have written laws that state that they can revoke your driver’s license for defaulting on student loans.
Iowa’s law states, “Sanctions can also be imposed for reasons not related to the operation of a motor vehicle, including certain drug offenses and nonpayment of certain financial obligations such as a debt to the state, child support, or a student loan.”
In Montana, defaulting on a student loan can result in “indefinite suspension until student loan association notifies Motor Vehicle Division of compliance.”
There are even more states who’s state that failure to paying your student loans can result in the following:
- Revoke your tax return
- Garnish your paycheck
- Take your federal benefits
- Revoke your professional license
There are some states that will allow that professional licenses to be revoked, suspended, or flat-out refuse to certify if the member has defaulted on their student loans.
If you’re having trouble paying back your student loans borrowers do have options to help them. Available options include lowering monthly payments and loan forgiveness.
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