Not so much. The U.S. government has always assumed all of the risk on student lending and was essentially just giving free money to certain private lenders without getting anything in return. It's removing a layer of bureaucracy more than it's a government takeover.
What you are talking about really isn't a competitive industry, it is more of "rent-seeking" behavior where private enterprise extracts tax-payer dollars to subsidize their "business."
That just shuffles who in the private sector gets the data to the IRS, although as long as they're successful they'll ensure the employment of more government workers to oversee the paper to digital capture system.
I'm talking about the necessary people, wherever they are, who then have to process the paper work, deal with random out of band requests, dun people who don't pay up, etc. etc.
That work has to be done somewhere (unless you prefer the model of Medicare with it's low, low overhead and insane level of bogus claims).
It most likely will - the gov't just hands out the loans, customers come to them, they don't have to market or any of that.
But those jobs marketing a government backed loan shouldn't have existed anyways, no institution was taking a risk to earn that interest, it was a legally created market distortion -- so whatever.
Are you seriously arguing the side of a bunch of middle-men who provided no value, saying it's too bad that their industry is going to disappear?
Wow. And I bet you spend the other 364 days of the year talking about how the private sector is so superior through survival of the strongest and all that.
