The federal government took over student loan financing, not state governments. The federal government doesn't run state DMVs, and they don't make rules about s

The federal government took over student loan financing, not state governments. The federal government doesn't run state DMVs, and they don't make rules about suspending state licenses. And the OP is mistaken about 21 states suspending driver's licenses. Also the Federal government used to guarantee the debt. Now they finance it directly. They were always the ones on the hook.