Sunday, June 17, 2018

Can Rubio Right His Own Wrong?


Joining the chorus of politicians who have recognized that one can’t repay their debts if they cannot work, Sen. Marco Rubio (R – FL) is reaching across the aisle to correct a mistake from earlier in his career.
Rubio is working with Sen. Elizabeth Warren (D- MA) to protect citizens from the potential suspension or revocation of the professional or driver’s license due to missed student loan payments, an approach that many critics see at face value to be counter-productive.


Rubio’s home state of Florida is not alone in depriving student borrowers who fail to make payments of the means to earn a living. At least 20 states have laws on the books that allow them to suspend or rescind occupational and driver’s licenses for defaulting on their loans. This has resulted in 8,700 known cases of affected individuals, though the actual number could be much, much higher.

“Difficulty repaying a student loan debt should not threaten a graduate’s job. It makes no sense to revoke a professional license from someone who is trying to pay their student loans,” said Rubio, in a press release on his website. “Our bill would fix this ‘catch-22’ and ensure that borrowers are able to continue working to pay off their loans.”

Reports cite that states like Tennessee alone have suspended the licenses of over 5,000 individuals in a five-year period for this type of default. While some proponents of the practice say it is an ‘attention-getter’, others question why the government should have any additional means that other creditors would not have when recouping a debt.

Among professions impacted are ones already experiencing shortages of qualified candidates, including teachers and nurses. This leaves employers scrambling to fill roles where the only obstacle to hiring an individual may be a lien to the government.

Jeff Barth, a commissioner in South Dakota’s Minnehaha County, said “I don’t like people skipping out on their debts, but the state is taking a pound of flesh.” His state has prevented  1,000 residents from holding a driver’s license due to education debt.

In related news, other states are realizing the barrier to employment that occupational licensing creates in the first place, and are calling to abolish them. Reform efforts are underway in Nebraska under the leadership of Sen. Laura Ebke and in Pennsylvania, where Gov. Tom Wolf has called on his legislature to take action.

No comments:

Post a Comment