A Resolution on Occupational Licensing and Student Loan Defaults

Summary

This resolution resolves to abolish the authority of states to strip workers of their licenses, and therefore their jobs, if they fell behind on their student loan payments.

A Resolution on Occupational Licensing and Student Loan Defaults

Whereas, upwards of 30 percent of Americans must have an occupational license to work in their profession; and

Whereas, nearly one out of every four Americans under the age of 30 has student loan debt, and outstanding American student loans total around $1.4 trillion; and

Whereas, in the 1980s and 1990s, many states enacted laws permitting licensing boards to strip workers of their licenses, and therefore their jobs, if they fell behind on their student loan payments; and

Whereas, this policy creates unemployment, makes it more difficult for defaulters to repay their debts, pushes individuals into poverty and hurts their families; and

Whereas, the jobless are more likely to seek state-funded assistance, increasing the taxpayer burden; and

Whereas, analyses show that this is an unreliable means of deterring student loan defaults; and

Whereas, no less than ten states have repealed this power since 2018;

Therefore, be it resolved that California, Florida, Massachusetts, Minnesota, Nebraska and South Dakota ought to follow suit and abolish this authority.