&gt; The government sells the loans out of the gate.<p>Pretty common to sell loans to others to service them. At no point is the company getting paid twice though.<p>&gt;Please see the article about the number of times his loan has been sold.<p>Shouldn&#x27;t impact the borrower at all.<p>&gt; And people willingly buy them because they can make a boat load of money of late fees and other penalties, and because they are &#x27;backed&#x27; by the government.<p>Late fees and penalties only come into play if people are not paying. Backed by the government is most likely the only reason the loan was written at a certain rate to begin with.<p>The point, no one who writes the loan is getting paid by the government in full and then going after the borrower and getting paid again in full. It is the government going after the borrower through some intermediary.