If you’re like us, you’ve thought of what would happen if you didn’t pay your student loans. Sometimes, we think not much will happen because hey, they are only college loans, it’s not like we bought a house or anything, right? We say those things just to comfort ourselves in times of distress. We know that the truth is, there are severe consequences of not paying your student loans. And apparently, losing your driver’s license is one of them. Yeah, we didn’t believe it either until the National Consumer Law Center revealed a list of states where lack of payment on your loans could cost you your professional certification or even your driver’s license.
According to the list, certain states such as Alaska, will take away your profession license (that most likely got you into student debt in the first place), for a job in nursing, social work, dentistry and even EMS work. Oh, and let’s say you’re one of the incredibly lucky people who win the lottery in your life, if you live in Kentucky, your lottery winnings can be withheld by the state for loan default. WTF?!
It doesn’t even really make sense that certain states will take away your only means of paying back your loans, but hey, the student loan business is a shady one.
In case you didn’t know, defaulting is failure to make payments on your loan as promised in your promissory note. When it comes to federal loans, you automatically default if you haven’t made a payment within 270 days.
In order to avoid default, you can work with your lender to try and minimize monthly payments or change your due date. You can also file for deferment and forbearance. Read more tips on how to avoid default here.