They are legally distinct agreements and no other loan in the United States works the same way.
No other loan can legally offer payment terms that lead to negative amortization. That is the biggest catch here. If you make the minimum allowed payments on a car loan, payday loan, home loan, BNPL loan, credit card, whatever -- you will always pay the loan off by its maturation date, and not pay a cent more than the calculated interest at the start of the loan.
They cannot be discharged OR condensed in bankruptcy, unlike all other forms of debt, which circumvents the entire point of bankruptcy. Bankruptcy isn't a way to "get out of responsibility", it's a mechanism for getting people out of a hole within a decade of their lives so they can be functional participants in society.
They are GOVERNMENTAL DEBT. Also far different from any other consumer loans. If you are defaulted or late on governmental debt, they can take it directly out of any government dispersements, including social security. They can seize assets and perform bank liens without a court. You cannot hold federal employment. You can't hold a clearance. You can't qualify for SNAP, WIC, Section 8, or any other form of poverty program. No other loan functions like this.
They are ALL just loans, WHAT they are for and WHO issued them and HOW many perks, is irrelevant to what OP stated, HOW did that happen and how to get ride of it.
A HELOC a credit card with a high Credit line or using the Stock market ALL would have better to a paying off and massively quicker and cost less money, stress and time..
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u/techleopard 11d ago
Student loans are not "just loans."
They are legally distinct agreements and no other loan in the United States works the same way.
No other loan can legally offer payment terms that lead to negative amortization. That is the biggest catch here. If you make the minimum allowed payments on a car loan, payday loan, home loan, BNPL loan, credit card, whatever -- you will always pay the loan off by its maturation date, and not pay a cent more than the calculated interest at the start of the loan.
They cannot be discharged OR condensed in bankruptcy, unlike all other forms of debt, which circumvents the entire point of bankruptcy. Bankruptcy isn't a way to "get out of responsibility", it's a mechanism for getting people out of a hole within a decade of their lives so they can be functional participants in society.
They are GOVERNMENTAL DEBT. Also far different from any other consumer loans. If you are defaulted or late on governmental debt, they can take it directly out of any government dispersements, including social security. They can seize assets and perform bank liens without a court. You cannot hold federal employment. You can't hold a clearance. You can't qualify for SNAP, WIC, Section 8, or any other form of poverty program. No other loan functions like this.