If the current interest rate is high compared to default risk, why hasn't some private company come in to undercut the government and make a killing? I don't th

If the current interest rate is high compared to default risk, why hasn't some private company come in to undercut the government and make a killing? I don't think it's because the banks aren't greedy enough. My guess would be that it's because of the extremely high default rate on student loans, and the extremely favorable repayment terms that government loans offer: payments capped at 10% of discretionary income, and forgiveness after 20 years (10 if working in non-profit or government)[1]. [1] https://studentaid.ed.gov/sa/repay-loans/understand/plans/income-driven https://studentaid.ed.gov/sa/repay-loans/understand/plans/in...