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Washington, D.C. — U.S. Senators Marco Rubio (R-FL) and Elizabeth Warren (D-MA) reintroduced the Protecting Job Opportunities for Borrowers (Protecting JOBs) Act, legislation that would help ensure borrowers’ are not inhibited from working in their trained field solely because they fell behind on their federal student loan payments. Specifically, the Protecting JOBs Act would prevent states from suspending, revoking or denying state professional, teaching, or driver’s licenses solely because a borrower falls behind on their federal student loan payments. A one pager of the bill is available here.
“It is wrong to threaten a borrower’s livelihood by rescinding a professional license from those who are struggling to repay student loans, and it deprives hardworking Americans of dignified work,” Rubio said. “Our bill fixes this ‘catch-22’ and ensures that borrowers are able to continue to pay off their loans during, or after, the coronavirus forbearance period ends instead of being caught in a modern-day debtors prison.”
“Taking away people’s drivers’ or professional licenses simply because they’re struggling to pay back their student loans is unconscionable,” Warren said. “Even before this pandemic, student loan debt was crushing millions of Americans — and this is why I’m fighting to get immediate relief to students by cancelling up to $50,000 in federal student loan debt and why I’m glad to be reintroducing this bipartisan legislation with Senator Rubio to remove senseless roadblocks so that borrowers can build better financial futures.”
What the bill does: Beginning two years after enactment, this legislation would prevent states from suspending, revoking or denying state professional licenses solely because borrowers are behind on their federal student loan payments. The bill achieves this goal by using the same statutory structure that requires certain members of the Armed Forces receive in-state tuition as a condition of the states’ colleges and universities receiving certain federal funds under the Higher Education Act.
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