What does the status "permanent assignment government" mean on the credit report?

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Q: What does the status "permanent assignment government" mean?

I am viewing the credit report and have noticed that under some tradelines is the status "permanent assignment government." What exactly does this mean?

A: The applicant defaulted on previous student loans.

Solution: Although the original accounts are now closed, they are still a part of the credit history. When a borrower defaults on student loans that are guaranteed by the federal government, the creditor can file a claim with the government to recover the amount of the loan. However, the borrower still owes the debt. The government can consolidate the accounts into a new loan for the collection of the debt. The status "claim filed with government" indicates that has taken place.
The original student loan accounts will remain on the report for seven years from the initial missed payment that led to the claim being filed with the government.

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