[wheelerwj]

you're right about the total cost of collection. it should be measured on actual collections not just defaults.

but in this case it sounds like a substantial amount of that expense goes towards getting people back onto plans. so thats obviously a default-specific expense.

I have to disagree with your assessment about wether the government should be in the student loan business. Providing employment for the sake of community/national services is the exact role of government.