Insurance License Suspended over failure to pay College Loans

[Cornelius]

Today I was looking at Tennessee Insurance Dept website and they had a link for actions against agents.

Being nosey of course I just randomly clicked on a few names. Some posted license suspended over failure to pay college loans. So I wonder if anyone has heard of any other states doing the same thing.

After seeing that kids today really have to take a serious look when considering taking out high student loans.

Yes they were also given the option to get payments up to date or make arrangements but darn. I would guess it might be the same if behind on child support...

 

[adjusterjack]

I wonder if anyone has heard of any other states doing the same thing.

A 2 second internet search reveals that there are several states that can suspend/revoke both professional and drivers licenses for failure to pay student loans.

states that suspend insurance licenses for failure to pay student loans at DuckDuckGo

 

[rousemark]

Don't want sound uncaring or harsh but if you borrow the money, you pay it back. The folks know it is a loan when they take it out. For them not to pay it back is taking unfair advantage of the poor folks that did not have the chance to go to college.

 

[DayTimer]

The college student loan industry is a racket and those loans are designed never to be paid off.

And it makes no sense to deprive someone of an insurance license which may be the best shot that person has at being able to earn enough to pay those loans off.

I get prohibiting felons, sexual offender et al from licensure. But debt should not be a reason to deny licenseing.

Now, the carriers of course have their own say about how who they will and will not contract with.

But man, especially with what Americans have lived with over the last 20 years: The dot com bubble, the real estate bubble, the financial crisis, and now Covid ... folks need forgiveness and forbearance - I do not mean loan forgiveness and forbearance - I mean that otherwise honest well-meaning Americans deserve a second and even a third chance to make good. That is what this country is about, isn't it?

 

[tikibarrister]

And it makes no sense to deprive someone of an insurance license which may be the best shot that person has at being able to earn enough to pay those loans off.

However, student loans offer almost unlimited forbearances, opportunities to work out a payment plan, opportunities to consolidate, opportunities to roll over missed payments and get current, etc. I mean, you have to completely ignore all attempts to work on things to default on a student loan.

In fact, I'd say that if you can't stay in a student loan company's good graces, you can't handle any loan and probably shouldn't be involved at all in handling people's money.

 

[sshafran]

However, student loans offer almost unlimited forbearances, opportunities to work out a payment plan, opportunities to consolidate, opportunities to roll over missed payments and get current, etc. I mean, you have to completely ignore all attempts to work on things to default on a student loan.

In fact, I'd say that if you can't stay in a student loan company's good graces, you can't handle any loan and probably shouldn't be involved at all in handling people's money.

You just hate millennial, don't you...
《Not serious》

 

[sshafran]

The college student loan industry is a racket and those loans are designed never to be paid off.

Ah, no. Millions of us paid them off. I drove a $2,500 car, never ate out, and lived in a $485/mo apartment until it was paid off. My hourly pay was like $12 @ Staples and my wife made about the same. Worked some side jobs as well.

 

[titeye]

This is off the subject of insurance, but these replies reminds me of biblical scriptures that speak against judging others. Some of us may not have had a student loan we could not or did not pay back. Some of us may have had loans that we did pay back. Either way, all of us have done something we should not have. But, I get it. It helps take our minds off our own faults.

Come to think of it, what is the difference, morally, between a person who cannot or refuses to repay a student loan and the individual or business that files for bankruptcy? I can name several insurance and financial institutions that have filed bankruptcy, reorganized, and are still handling people's money.

 

[DayTimer]

This is off the subject of insurance, but these replies reminds me of biblical scriptures that speak against judging others.

All these temporarily frustrated millionaires at the insurance forum have to distance themselves from the working class.

 

[DHK]

For securities, these compromises with creditors (bk, judgment/liens) merely need to be disclosed. They don't suspend a license over them.

It's just the difference of regulators. And with personal experience on the child support stuff, it's all about state issued licenses and the communications there. If you aren't current, don't expect to go fishing or to be able to drive to the lake to do it.

But student loans? Really? Since when did the state ever care about the financial stability of a federal entity? Makes no sense to me. It's just another creditor... that can't have their debts be BK'd (in most cases).