No, it's not; it predates direct loans existing, much less being the only form of federal student loan, and applies to private, non-government-guaranteed student loans, as well.
> Same reason they can collect the debt using wage garnishments and property liens, methods that aren't available to most creditors.
Property liens and garnishment are available to most creditors after securing a judgement against a debtor.
> This is only explained to some students (it was to me).
It’s good that only some students are subject to that complete fabrication, though it would be better if none were.
The government does not need a court judgement against a debtor before garnishing wages, withholding returns, etc. This is why the majority of these actions are for child support and student debt, not for consumer debt.
The rules for student debt repayment started with the premise that a different process was in use for money owed to (or backed by) the federal government
Same reason they can collect the debt using wage garnishments and property liens, methods that aren't available to most creditors.
This is only explained to some students (it was to me). But no one plans on not having money in the far future, regardless of what warnings they receive