Communism and ANOTHER TAX
Since Zero’s funds will be at a zero interest rate ... he can reap all the profits.
Besides ... NEW CZAR will be required! And that Czar will love pouring over all your tax returns, bank balances and personal information you have to submit on the FASFA.
You are correct about the rat reasoning on the savings from nationalization. The original intent of private lending was for outside financing of student loan debt. Of course, private lending was not possible without subsidies (no interest until graduation). In addition, government imposed tight rules on loans to provide assurance to private investors. The rats have complained bitterly about these restrictions and indicated that nationalizing the lending programs eliminates the subsidy cost.
The rat’s goal is to make college education an entitlement. Like all entitlement programs, the costs will soar. The most important cost, the cost to finance the program through additional government borrowing and money supply growth, is unknown. Look for the rats to increase benefits (income contigent repayment, loan payment foregiveness, below market interest rates, ...) and hide the true costs.