The author misses the major problem with nationalizing student loans. Nationalizing student loans makes higher education an entitlement. The federal government will provide the capital instead of private industry. Federal control relaxes repayment rules eventually making loans into grants.
The Democrats have made the ridiculous assertion that federalizing the program saves money. Subsidies and strict repayment rules were necessary to reduce the risk to private borrowers. Competitive bidding reduces but cannot eliminate the subsidies because students are poor candidates for unsecured loans at favorable interest rates with deferred interest payments. The subsidies however revealed the true cost of the loans. Federalizing the program makes the cost difficult to ascertain and likely to increase substantially.
Subsidizing student loans will raise the cost of college even further. Then, when the students can’t pay it back, they have to go to work for the Gubmint to pay it off.
This is the company store all over again.