Student Loans versus other loans

I support the Government nationalizing the student loan industry and eradicating the private banks as middle men because it is not a real market like other loans. With a car loan, home loan, or other more unsecured debt there are important decisions to make as to whether the borrower is credit worthy, and if so how much should they be charged for the loan.

However, we have (and should continue) to embrace the concept that everyone who has the academic ability and desire should be able to go to college. Therefore there really isn't any financial qualification. Additionally, it is not good policy to charge people with bad credit more fees or a higher interest rate to get an education. So in effect, a college loan is more of an entitlement than a loan qualification. Why should we allow banks to get into a process where they get to earn money with very little risk?

The value of the private sector is that in general the more people we have making important decisions the better. We absolutely don't want the government or any central planners making decisions about people's lives anymore than necessary. Politics comes into play. Group think comes into play. We need competition and new ideas about how to proceed.

Student loans fit into a category where the government can and should do it cheaper and better.