Student loan bill could put some jobs in jeopardy - WMC Action News 5 - Memphis, Tennessee

Student loan bill could put some jobs in jeopardy

(WMC-TV) - A new bill making its way through the Tennessee House could put some jobs in jeopardy if you have outstanding student loans.

The Tennessee House voted in favor of Bill 740 Thursday.  The bill would revoke, suspend, or deny a state license to teachers who default on federal and state-issued student loans.

Some lawmakers find the concept counterproductive.

"If the student does not have a license and cannot work, then how can they possibly come out of default for their student loans," said Democratic Representative Antonio Parkinson.

The bill, which has already passed in the Tennessee Senate, was sponsored by Republican Senator Randy McNally, who said it is not the state's intention to put anyone out of work.

"It's our intent, and so far the program has worked very well to get these people to come in and set up a payment schedule," said McNally.

Those outstanding balances leave less money for the state to offer new student applicants.  Critics of the bill agree loans should be repaid, but wonder if there is a better way to get the money back.

"Even through garnishment," said Parkinson.  "The thing is if we were to garnish the checks of individuals with a license, at least there is an income to garnish."

Parkinson said in these economic times with big changes ahead for Memphis and Shelby County education system, there could not be a worse time to threaten someone's ability to generate income.

The bill also adds attorney, sports agents and lobbyists, who would be subject to losing their license.

The House version of the bill has to go back to the Senate for them to approve an amendment before it goes to the governor for signature.

Copyright 2012 WMC-TV. All rights reserved.

Powered by Frankly