Federal takeover of student loans

You may have heard rumblings of this the past month or so. What it means is that all student loans will come through the government; they would determine who gets what, based on their own criteria. Some citizens have expressed concern that this would lead to rationing based on government determined quotas, the same fear that was expressed regarding health care. Just because it sounds paranoid, considering the huge databases the government is building and the possible collusion of NSA and Google in future endeavors, it doesn't mean no one's following you. Over at Red State:

It should be no surprise that an organization like the New York Times, which is a consistent money loser these day, is in favor of a government take over of the student loan industry. A group of people who have shown no ability to run a successful business tend to hate success. But their reasons for doing so are not just nonsense, but total distortions of reality.