Several states including Iowa and Montana are considering repealing laws that take away drivers and occupational licenses when individuals fall behind on their student loan payments.
At least 22 states have similar laws currently on the books, but consumer advocates are trying to get the laws repealed, saying that taking away driving and occupational licenses will only hinder a person’s ability to pay back their loans. Some lawmakers agree, including Montana state representative Moffie Funk who supported a recent bill to repeal the statute:
“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.
In addition to transportation issues, debtors…
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