Student Loans Can Affect Your Driver’s License

Published by Michael Hoban on

Student loans are a very relevant issue in America today. In fact, the New York Federal Reserve reported that the loan crisis has reached over a trillion dollars in total. Student Debt affects over 44 million Americans and their families. No, that was not a typo and if you think that is scary it gets worse. Americans are in over a trillion dollars worth of debt in the form of student loans, which outweighs auto loans or credit cards by large margins. Worse yet are the consequences of failure to pay back your debts.  In Illinois and several other states, the consequences of defaulting on student loans include the state suspending your driver’s license. 

Suspended License

For any number of reasons, people fall behind on student loans. While no one purposefully puts themselves in a position to default, it does present obstacles for many. defaulting on any loan affects your credit, but failure to pay back student loans results in a driver’s license or professional license suspended. Professionals such as doctors, teachers, brokers, and more could lose their ability to practice for a time. This poses a problem for people that rely on driving for or to work. But the consequences do not stop there, they affect other areas of life as well.

Other Factors Affected

Since driving on a suspended license is illegal it may result in arrest or impoundment. On top of that, getting caught with a suspended license will result in the need for Sr-22 insurance. In order to the license back, a driver would need to take defensive driving courses while maintaining Sr-22 coverage. Unfortunately, the driver will then face larger premiums for their auto insurance once they can drive again. In conclusion, defaulting on your student loans is the beginning of terrible domino effect. Falling behind on loans results in the loss of your ability to drive. Then your inability to person’s drive results in wage lost, making loans more difficult to pay back. It’s safe to say student loans remain a relevant topic, and carry more weight than some may know.