Are Student Loans Different Than Other Loans

Q: Are student loans different from other type of loans, like a car loan for example, and will student loans show up on my credit report?

A: Student loans are treated fairly similar to all other types of loans, especially where credit is concerned. As with auto loans and/or home loans, borrowers are held responsible for the amount they borrow, and will have to repay that amount plus interest (in most cases, no matter what). Student loans will show up on an individuals credit report, and as with any other type of debt, failure to make payments will negatively impact your credit profile.

Similar to most other types of loans, borrowers can not get out of repaying a student loan, simply because their financial circumstances become difficult. In some cases, student loans are even held to a high standard than most other types of loans. For example, if an individual qualifies for bankruptcy their student loan debt is often the only debt not eligible for discharge. It is extremely difficult to have student loans discharged in bankruptcy.