In at least 18 states, unpaid students loans can be grounds for denying someone an occupational license—even if the applicant is otherwise fully qualified.
Under these laws, state licensing boards can prevent applicants from earning the money they need to repay the loans that disqualify them from licensure. It's a nonsensical cycle that can lock qualified workers out of good-paying jobs. There's no benefit to the public—consumers' health and safety is not threatened by workers who owe student loan payments—though the policy does, like much else in the world of licensing, serve the interests of existing license-holders by limiting competition.
Sen. Marco Rubio (R–Fla.) calls it a "Catch-22" that resembles a "modern-day debtors' prison." This week, he teamed up with Sen. Elizabeth Warren (D–Mass.) to introduce a bill that would prohibit states from denying occupational, teachers, or drivers licenses due to unpaid student loan debt.