This is what the federal government allocating credit looks like. It is the banksters' worst nightmare because allocating credit--deciding who gets to use money for how long and at what cost--is how they make a living. They should have thought about that before turning their counting houses into gambling dens.
What the banksters like is to red-line loans to people they don't like and then wait for the federal government to bribe them with an insurance package to cover any loss if the people they don't like end up being swamped by high interest rates and fees and default. What the banksters like even better is working hand in hand with the purveyors of shoddy services, education and training that leave the borrowers with a skill-set that nobody wants to hire.
For some reason, it wasn't widely noticed that, as part of the health insurance reform legislation in 2010, the student loan insurance program was also revamped. Since it wouldn't be fair to cancel existing contracts, outstanding loans were slated to be serviced by the banks and only new loans for students would be issued and serviced by the Department of Education. Consolidation was scheduled to occur in 2014, giving the banks plenty of time to adjust to the loss of this customer base.
Now the Obama Administration, perhaps having discovered that amalgamation isn't all that hard, has moved up the schedule for putting all student loans into one pot.
A similar strategy is being followed in regards to mortgages which have become un-affordable because the people are unemployed or interest rate adjustments and fees have ballooned their debts to unsustainable levels. Refinancing seems the logical solution and, since the banksters are unwilling to co-operate, we'll just have to do it ourselves. Of course, that only makes sense, if you believe that the government is us.
We the people are going to bail out homeowners and students. This is fair, btw, because we the people let the banksters and fraudsters take advantage of them after having received fair warning. We the people elected the Administration of No. TWICE!