PSA on Student Loan Repayment

My sources tell me that we may be approaching the end of the student loan deferral period. On the one hand, we’ve had “this is the last extension” moments five or six times now, but on the other hand, the government says they really, really mean it this time. Either way, this has many people talking about what this means for their debt going forward.

For those who were barely making payments work back in 2019, these last three years have been a huge relief. For those who have been able to continue making payments (including me), the interest pause has been invaluable in allowing us to actually make our balances get smaller instead of bigger.

Photo by Karolina Grabowska on

The return of payments and interest is going to be an adjustment, and it is understandably bringing up some anxiety. I have seen talk of a protest, where loan holders simply do not start making payments again.

On the one hand, I am personally in favor of student loan cancellation, as well as protests. On the other hand, anyone considering joining this protest needs to be aware of possible consequences of defaulting.

In addition to a mark on your credit score, many states have laws that allow them to revoke driver’s or professional licenses for those who default on their student loans. It makes total sense, right? You can’t afford to pay your debt, so the government takes away your job.

Always double check, because laws change all the time. According to a lawyer I found on Google, here is a breakdown of states that reserve the right to revoke licenses if you default on student loans:

Revocation of professional license for any student loan default

  • Alaska
  • Georgia
  • Hawaii
  • Iowa
  • Kentucky
  • Massachusetts
  • Tennessee
  • Texas

Revocation of professional license for default on certain student loans

  • Arkansas
  • California
  • Florida
  • Mississippi

Revocation of driver’s license for any student loan default

  • Iowa
  • South Dakota (SD will also revoke hunting and fishing licenses for student loan default.)

Be careful, protect yourself, and call your reps!

Published by Dr Marschall

Dr. Amy Marschall received her Psy.D. from the University of Hartford in September 2015. She completed her internship at the National Psychology Training Consortium with specializations in assessment and rural mental health. Currently, she specializes in trauma-informed and neurodiversity-affirming care, and she is certified in telemental health. Dr. Marschall runs a private practice, RMH Therapy, where she provides individual and family therapy as well as psychological assessments across the lifespan. Dr. Amy Marschall is an author and professional speaker.

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