Why did Obama and the Marxist centered Dems take over the student loan business? File this report under "Smoke and Mirrors."

35,000 people lost their jobs when Obama and Washington took over the student loan industry in 2009. "No more middle man," he told us, would mean easier and cheaper loans.

By moving away from the corporate middle man, Obama was making this promise:

By eliminating taxpayer subsidies to corporate middlemen who marketed and originated federal student loans, the Obama administration says it will raise more than $60 billion over the next 10 years that will be spent on more and bigger grants, easier repayment terms, and even a little deficit reduction. Linked source.

That was the promised circumstance back in March of 2010. So why, now, an upgraded change to this grandiose promissory note? Because

a) that $60 billion is not happening. The money is not pouring in,

b) Obama needs votes. He and his buds are hurting, big time, for popular support. If 2012 is anything similar to 2010, this bunch of Marxist misfits are on their way out.

What is never discussed as relates to government programs is the amount of paper work required compared to private enterprise. In the case of the federal mortgage program, applications are as large as 160 pages. Local mortgage financiers, here in the Central Valley of California, specifically point to the "ordeal of the application" as reason enough to discourage folks from completing the process. As a result, less than 10% of those needing assistance actually took advantage of "Mortgage Rescue I."

What is true for the federal mortgage business is true for the federal student loan industry. It is not working well and the government has only itself to blame.

A second consideration never discussed, is the matter of what is done with the profits (interest) collected from these loans. To be sure, Obama wants all to believe that cutting out the middle man means the deletion of profit.

Not true.

Obama is borrowing money at 2% and "selling it" to students at 6% with the profits going into ObamaCare, further evidence that ObamaCare was never a zero-sum game. Understand that the take over of the student loan industry was for the purpose of funneling money into ObamaCare the takeover was a specified manifest within the health reform bill, itself. The takeover was written into the bill.

Conclusion: federalized "student loans" were never about students, but about paying for ObamaCare and funding the increase in Big Government . . . . . and none of it is working as planned.