The government isn't just cutting out the middle man, they are cutting out competition and choice among lenders. There is a clear motivation to do so because the CBO essentially said the savings could be rendered through private channels:
The non-partisan Congressional Budget Office said that ending fees paid to private lenders would save the taxpayer $87 billion over the next decade.
An alternative proposal floated by a group of lenders including Sallie Mae would realize the same level of savings, the CBO said.
In the Senate, staff on the Health Education Labor and Pensions Committee are drafting legislation similar to the House version, according to a Senate Democratic aide.
The Senate bill also would end private-lender origination of loans, the aide said, leaving the federal government as the sole provider of college loans.
Since obviously they are acting to control this aspect of funding higher education, it can't be paranoia on my part to wonder what Obama & comrades have planned if it could be done privately at the same cost savings.
And BTW--Here's a good reason to be paranoid about Obama....:http://english.pravda.ru/opinion/column ... pitalism-0
When you have Russian op-ed pieces comparing your president and governmnet to the style of government that they have tried to throw off, it is cause for concern. It's making Kruschev look like he had a crystal ball fifty years ago.