The switch to non-dischargeable loans came along with cutting banks out of the federal student loan system. Non-dischargeable loans are issued and owned by the Department of Education, and only them.
This predated that change. Sallie Mae use to directly fund student loans, now Navient only manages them for the Dept. of Ed.
Edit: forgot to say non-dischargable goes back way before that switch. I have personal experience around 2001, but I'm pretty sure it goes back to the 80's.
