Draft
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 including occupational licenses, commercial driver’s license and other job-related 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Whereas, no less than ten states have repealed this power since 2018;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.