So the Government debt of providing you an education (That you were charged taxes to cover) is now personal debt not Government debt.
You paid double for that education Buster!
But it does delay the Government going bankrupt. When it all hits the fan, the Government walks away telling the USA creditors that it’s now ‘YOUR debt”, provides the creditors with your address and bank details.
The money lenders up the interest rate and hound you for the payments then offers you the choice of becoming an indentured slave or handing it all over to them and moving to a Poor House for the rest of your life (A slave with accommodation).