Apparently universities begin sending letters or emails or what have you to students who are in danger of defaulting on their student loans. Now, with a public university I can sort of understand this, given it's effectively a government institution and student loans oftentimes are comprised of government funds.
But from what I've been told, all universities do this, public and private. Why? Do they get some sort of black mark on themselves by the failures of their own graduates to repay loans? Does it in some way affect their standing somehow with some agency or regulations or what have you? Why would a university care about a graduated student at risk of defaulting, and send them correspondence in an attempt to get them to avert it? I'm not much of a finance guy so I don't see the motivation here unless they have some kind of vested interest in it.