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Driver's license may be suspended for student loan defaulters

Many Tennessee college students fund their education by taking out student loans. However, repaying student loan debt can be very difficult. Many students often default on their payments, even after getting a job. In some cases, the student may not get a job right out of college, at the same time that he or she is asked to start the repayment process.

State authorities have observed that delinquencies in student debt repayment are on the rise and that accountability for non-repayment is crucial. The state has proposed revoking driver's licenses in some cases in which a student has been unable to repay their student loans for a long period of time. Tennessee legislators have even proposed that professional licenses be suspended in cases where the debtor is unable to repay his or her student loans.

Facing such dire circumstances has compelled many Tennessee residents to seek professional legal, as well as financial, help. In many cases, professional lawyers may help develop a repayment plan for the debtor, as well as negotiate with the company that has granted the student loan. Negotiating the student loan repayment plan may include extending the period of repayment with an added interest rate or another method that benefits both the debtor and creditor.

Many Hamilton residents may feel that they are caught in a vicious cycle. In most cases, the debtor may not be able to repay his or her student loans due to poor economic conditions, inability to seek employment or taking a job in which the salary is less than that for which they are qualified. By proposing a law that would suspend a professional's license for non-repayment of a student loan, the chances of the debtor recovering from his or her debts become even worse.

Source: News Channel 9, "License could be suspended if defaulting on student loans," March 31, 2015

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Kenneth C. Rannick, P.C.
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