[animefan]

Charitably, that would read "the government already has enough information to collect payments anyway, so it might as well do this, but should let private industry do the rest". Personally I don't think this is an appropriate use of the information the government has, or the government's power. In Australia they do it this way, but the government also does the loans. However your critique lacks substance as it ignores the legitimate reasons why some tasks are more appropriate for the government, and some for private industry, and repeats the tired old "privatize the profits, socialize the losses" schtick.