Privatization for fun and, especially, profit

http://www.usnews.com/usnews/issue/031027/education/27loans.htm

Which is better policy, direct loans issued from the government, or the Federal Family Education Loan Program?

Simply put, direct loans cut lenders out of the picture. Instead of paying subsidies to banks for making loans, the government earns the profits. Government figures show that direct loans typically bring in 22 cents for every $100 borrowed, after deducting for administrative expenses. The FFEL, meanwhile, costs the treasury $12.80 for every $100 borrowed.

If the government can make a profit issuing the loans itself, any good right-wing conservative would tell you that a private company could do better.  Of course, being profitable is much easier when the government continues to guarantee the loan and pays a subsidy on top of that.

Maybe private industry does need the help. After all, banking and finance is a little more complicated than baggage screening at the airport.