If you went to school before 2011 this likely isn't how it worked. Instead you actually got a loan from a private lender which was guaranteed by the federal government. The ACA changed this so that the federal government now actually originates and owns the loan.

> Prior to the Affordable Care Act, a majority of student loans originated with a private lender but were guaranteed by the government, meaning taxpayers foot the bill if student borrowers default. In 2010, the Congressional Budget Office (CBO) estimated 55% of loans fell into this category. Between 2011 and 2016, the share of privately originated student loans fell by nearly 90%.