Unlike random errors, systematic errors are errors that fed into the system purposely.  Today, we learned from an article that confirms such errors do occur.  Based on researching and studying the US student loans historical data, the Association has written and hypothesized about it many times.  Now that, according to the published article, such issues have been proved to happen by the DOE, but was hiding from the public, until today (November 20th).  It is pretty obvious who will suffer from this classical example of moral hazard.  Even though, this malpractice obviously scattered all over the places, the administrator seems to go the other ways.

From the statistical, econometric or classical theory of measurements, increasing the sample size will solve issues related to random errors, but surely not for curing, minimizing or eliminating the systematic errors.  This kind of vital errors can only be fixed if the sources that produce them are completely removed. Otherwise, the results may not pass the reliability test.  Needless to say that the loan servicing companies are not the only source that may have infused the errors into the student loans system either by design, unintentionally or unknowingly as a compromise to a more important management goals such as making profit.  This is the caveat, if letting publicly own company, i.e., Wall Street to get involved on basic public interest area. The game of the student loans is more than a one-party game.  If the regulator is part of the issue, then things may not look so ………smart.  The American public is the only party and the judge who can test this maintained hypothesis.  Good luck!