Sorry for the Buzzfeed-like title but... For some Americans, skipping student loan payments could put their driver's license at risk!! http://www.businessinsider.com/you-...nse-for-missing-student-loan-payments-2015-10 How is this even legal?!
What's the big deal? If one is that <fill in the blank> to borrow the student loan money, then one should pay the loan back. I have no sympathy for those who skip on debts. Bad career choices don't cut it with me. (OK, maybe some severe life-changing debilitating accident or disease that precludes earning any kind of an income and totally lacking immediate family resources.) There is absolutely no reason us taxpayers have to foot said obligation. Pfft.
What if the thing you are is too "broke". People can end up sick or disabled or just not able to earn enough to subsist ad honor a debt. And while any idiot who borrows money bet on horses or whatever can go bankrupt to get back on track, defaulting students can't. Of course people should repay debts. But student loans should either be interest free, or subject to standard enforcement and bankruptcy forgiveness like any other loan. Then maybe they would be awarded in a more careful and realistic way taking into account that most undergraduates assume they will never get sick and wildly over-estimate their future income potential. As for the logic in making a defaulting debtor even less able to earn income--I would consider that weak at best.
I can't tell if you agree or disagree with my hard stance and possible caveat, Penny. Regardless, why should student loans be free? Banks don't lend money without expecting a return on investment. Why should governments?
Of course the student loans shouldn't be free, but this doesn't seem logic. A lot of jobs require a driver's license in order to work on that specific positions. If someone isn't able to pay, let's say for an extended period of time, why would anyone decrease their chances of getting a job by going after their license? It basically diminishes the chances of ever repaying the student loans.
Here in the UK the student loans are only paid back when that person starts earning over a certain amount. Maybe that could be something to be looked in to in other countries?
I would not be at all surprised to see that system being kicked in to touch in the next couple of years because the job market is becoming increasingly difficult and, well, over saturated almost with hundreds of people applying for the one position. I don't know what can be done about it or what could replace it, but I cannot see it lasting that long.
Well it's legal because having a license and driving is not a right, it's a privileged. So the issuing body (government) can decide to revoke or suspend your privileged to drive for whatever reason they see fit. I'm not saying this is a good idea, just that it's completely legal. Now I do think this is a terrible idea, you are only going to further reduce the potential for them to earn money, which in turn will lessen the likelihood they can pay back the loan!
I agree that student loans should NOT be interest free, and should be paid back. However, I don't believe the govt should be able to do anything any other creditor wouldn't be able to do in effort to collect a debt. There should always be limitations to govt authority. As someone who has worked in lending myself, lending money to anyone or any entity is always at least a bit of a risk. I think that a bad credit rating and possible suits and wage garnishments are enough. It's bad enough they'll take it out of a tax refund. Now they want to revoke driving privileges? What's next? Breaking the legs of those who miss payments? The death penalty for those who default?
What a way to discourage people from furthering their education! I'm in the UK and I deferred my student loan repayments for a couple of years until I was earning about the repayment threshold. It's unrealistic to assume that everyone will walk into a high paid job straight from uni and it seems absurd to limit people's employment options when they are already in debt. What about helping these people and giving them some leeway instead?
