I don&#x27;t have a citation, but I think they might be referring to the fact that the government sometimes outsources this collection of students loans.<p>E.g., the government backs a Sallie Mae loan, you default, the government pays Sallie Mae, the government wants to collect, the government sells the debt to Sallie Mae to collect it.<p>It&#x27;s this that gives at least the perception that the originator of the loan has it in their best interest to have at least a portion of their loans go into default, as they can then purchase the debt from the government.<p>Edit: I think some of this has changed post Sallie Mae&#x27;s split into Naviant and Sallie Mae, but perhaps this perception still exists?