It’s a Default but they still owe the money so it’s not like a default. A default is usually when you are able to ignore it. The government will stay on you as long as you owe the money or until you negotiate a discharge.
Yep. I get the distinction you are making. But, it seems to me that most loans from financial institutions are secured with the value of the asset you are purchasing. When you default on a normal loan, you no longer have to make payments because the financial institution takes possession of the asset (house, car, etc.) and sells it to try to recoup the loan amount. The difference is that student loans are unsecured so there is no asset for the government to grab other than the borrower's future cash flows. That's why death and/or disablement are the only reasons these loans are discharged (usually).