After bailing out banks and the auto industry and in yet another step towards European-style socialism Uncle Sam has his eyes on our bodies and the education of our kids.

With all the hoopla surrounding Big Government’s mandate that we buy health insurance or be penalized – a move essentially telling us we have no right to decide what’s best for our bodies or if we value them enough to insure them – it was easy for student loan changes to fly beneath the radar.

Under the current system lenders such as Sallie Mae, Citigroup, Bank of America and JPMorgan Chase offer low interest student loans. The government pays fees to them for their middleman function. More importantly the government guarantees the loans in the event of default and, when necessary, subsidizes lenders to keep rates reasonable for low and middle-income student borrowers.

The new legislation eliminates these fees, subsidies and efficiencies that, in effect, remove the private sector as a viable competitor. The government will use the proposed savings of $61 billion over the next 10 years to become a direct lender.

Under the new system the maximum Pell Grant will rise from $5,500/yr to $5,900/yr. More than $4 billion will be directed to community colleges and historically black colleges. Roughly $19 billion will be used for non-education purposes such as paying for health care legislation and deficit reduction.

With but one inefficient lender there is but one choice – positively un-American!

Finally beginning in 2014 college graduates would have their monthly income available for loan repayment capped at 10%. The current cap is 15%.