A reality based independent journal of observation & analysis, serving the Flathead Valley & Montana since 2006. © James Conner.
Eighteen years ago, Montana’s legislature and governor decided to crack down on students who defaulted on student loans. They created a law that essentially said, “Pay up, or lose your license to drive,” assuming, it seems, that having to walk 20 miles to work would motivate the deadbeats, and there were undoubtedly some, to stop buying beer and start making payments.
But it’s not just a drivers license that could be lost by defaulting on a student loan. Here’s how MCA 20-26-101 defines license:
(6) “License” means a license, certificate, registration, or authorization issued by an agency of the state of Montana granting a person a right or privilege to engage in a business, occupation, or profession or any other privilege that is subject to suspension, revocation, forfeiture, or termination by the licensing authority prior to its date of expiration.
According to Pete Talbot at Intelligent Discontent, is one of just two states with a law like this.
Yanking a license is not the only recourse available to lenders seeking to collect student loans. “Plenty of consequences for student loan default already exist, including wage garnishment, tax garnishment, turned into collections, and ruined credit,” says the Montana Organizing Project, which is working with Reps. Funk (D-Helena), the prime sponsor, and Zolnikov (R-Billings) to pass HB-363, which would repeal 1997’s pay up or walk law.
Hearing information. HB-363 will be heard by the House's business and labor committee tomorrow morning, 5 February, in Room 172 of the Capitol, starting at 0830. Rep. Mark Noland (R-Bigfork) is the Flathead’s lone member of the committee. You can reach him by email or through the legislature’s online messaging form.
Why did Montana adopt a law so unnecessary and punitive? Probably because legislators and the governor were thinking like parents instead of like public officials. Is the kid — AKA former college student — misbehaving? Ground him! Take away his car keys. He’ll shape up right quick.
That might work when Junior is 16 and needs his car for a hot date. But it’s counter-productive when he’s 26 and needs his car to get to work.
If our current legislators and government approach their duties as public officials instead of as peeved parents, they’ll pass and sign into law HB-363. I hope that isn’t too much to expect.