Just a side note, despite being headquartered here in Indianapolis, Sallie Mae does have service centers in other places across the country...Pennsylvania is another major state with a large presence. This legislation falls under "eduaction reform," so highly touted by Obama and the Democrats.
One thing my friend made clear to me is there will be little competition when the government takes over. Additionally, the government loans have few controls to manage defaults, including no provisions for default insurance. If and when a student defaults on a loan, the insurance will come from taxpayers' money.