Not all of them, but a good chunk of them are. A lot of student debt is sold to big banks without the students every really knowing. Banks then package them together and sell them again, allowing themselves to make even more loans. The same people that tanked the economy in 2007-2008, and then got bailed out by the taxpayer, are now the primary debt holders of many student loans. The difference is that people with student loans have no way out. We punish those trying to educate themselves and reward those who exploited uninformed borrowers.

> Meaning if the loan defaults the government pays the creditor?

Yes. And therein lies the problem insofar as I'm aware, because you then owe the money to the US government and you cannot declare bankruptcy on the US government. You can escape paying a ludicrous mortgage or car loan or what have you by declaring bankruptcy. You cannot do the same with the US government, which will garner your wages for all you're worth for the rest of your life if you don't pay back your student loan.