The revocation of licenses came after the student loan industry lobbied the government to enact punishments for those who can't or won't repay the money they borrowed. According to ABC Action News, only Florida is enforcing this law as of right now. The state also has the power to garnish up to 100% of a worker's wages until the loan is repaid and the license is reinstated. Under Florida law, once the state suspends a license for student loan default, the only way to get it back is to pay a fine equal to 10 percent of the balance, plus other costs.
Investigative Reporter Adam Walser uncovered the state's Board of Health suspended more than 900 health care licenses - including professional certifications for registered nurses, Certified Nursing Assistants, pharmacists, and opticians - in the just the past two years alone.Tampa student loan attorney Christie Arkovich says Florida's law goes too far. "We're not saying that people shouldn't repay their loan," said Arkovich. "We're just saying that getting them fired probably isn't the best way to go about that." And anyone with a basic understanding of economics could comprehend this. If they aren't paying their loans while they have an income, what makes anyone think they'll start paying the loans once they have no income?
The I-Team found 12 other states (Alaska, Arkansas, California, Georgia, Hawaii, Iowa, Kentucky, Massachusetts, Minnesota, Mississippi, Tennessee, and Texas) still have the power to take away health care licenses for unpaid student loans, but officials in those states told ABC Action News they have not suspended any licenses over loan defaults in the past two years. -ABC Action News
"You take their license, you take their way of working, how are you going to get your lump sum?" said registered nurse Andrea Chandler. "How are you going to get your payment? You're already not getting your payment."
Dr. Gabriel Picone, an economics professor at the University of South Florida, said the decision to suspend licenses for nonpayment of student loans puts a strain on both employers and patients. Health care workers are already in short supply and those who lose their licenses will likely go from earning paychecks to depending on taxpayer-funded welfare. "It's trying to take too much away," Picone said. "This person may end up on Medicaid, receive food stamps. All this is more money that we will have to pay."
The United States Department of Education estimates more than 10 percent of student loan borrowers are in default. The federal government estimates Americans owe $1.2 trillion in student debt. That figure is now larger than all outstanding U.S. credit card and vehicle debt combined.
Florida law requires 45-days written notice before the state can suspend any licenses because of a default on student loan debt. Experts say if you get one of these notices, you should immediately contact your lender to try to negotiate a repayment plan.
(I AM NOT commenting on whole, post Bush*t II 'Student Loan' scam, wherein a significantportion of STUDENTS well knew that they were 'in on the scam' - almost 100% of which occurred at now bankrupt privately-owned institutions of 'Highter Education' (sic) (sic).
To help end the problem, those Americans of our 'most-awoken' generation, (DOB: 1955-1975, GENERALLY!!!!!*) should simply take advantage of our corrupted bankruptcy laws -(Florida's are the most lenient on the debtor which is why such a disproportionate number of infamous scumbags move here, e.g., OJ, et al.) and file where and when they can, wherever they are, rather than dealing equitably and honorably (likle most/99% of our generation are) by paying off loans to banks, when the banks have been scammming us from day one, and when they make 'errors' OR STEAL!, THEY get paid off by US!!! (E.g., 'Too Big to Fail; the Fed. Reserve ponzi scheme, et al.)
For example, your median, 'barely above water' homeowners in most states, could simply SCREW their creditors, and come out with better income, AND credit than they had before they filed; but they/we won't, because we rightly holdhonor as a constant while our opponents claim honor but routinely use DIShonorable methods against any who confront THEM . But one can't fight dishonorable creditors via honorable methods and still win. (America's legal system is long past that point.)
See a Bankruptcy attornery in yours state.
R.C.
*Don't talk to me about exceptions. The above article and this comment based upon it, are both based upon sociological statistics,, which/where/when properly used, have validity. However, these days, they are mostly used by the MSM to obfuscate the true issues, of which this general topic is a common none.**
** Aka, 'figures don't lie, but liars figure;' and, The three lies: "Lies; 'Damned Lies'; and, Statistics."
RC