

As if defaulting on your loans isn't crappy enough, some states will actually suspend your driver's license if you fail to pay. Seriously.


The exact license or certification that can be taken away varies from state to state. For example, some states revoke your driver's license, while others will take a teaching license, medical license, or even a legal license. Here are a few examples:

California: Health care practitioner and clinical social worker license

Health care practitioner and clinical social worker license Iowa: Any state-issued license, including your driver's license

Any state-issued license, including your driver's license Tennessee: Public school teaching license (credential) for K-12 teachers

Public school teaching license (credential) for K-12 teachers Texas: Dental, medical, and chiropractic examiner license

State legislatures in Montana and Iowa are currently considering bills to repeal license suspensions. (Repeal advocates consider them counter-intuitive because once your license is suspended, your earning potential takes a blow, as does your ability to repay student debt.)


Student loan "default" is defined as 270 days without payment. If you are having trouble repaying your debt, and are close to default, be proactive and look into all of the available options for student loan help. Check out the full list of states at Credit.com below to see what rules your state has.

22 States Where You Could Lose Your License for Not Paying Your Student Loans | Credit.com

Photo by Steven Polunsky .