Obama's Smokescreen Savings on Nationalizing Student Loans

Obama and his Democrats will take up the topic of nationalizing the student loan industry today. They claim that they will "save taxpayers" $94 billion by "reducing subsidies" paid to private lenders. This claim is yet another lie in the pantheon of falsehoods coming from this administration. From DowJones Newswires:

According to the nonpartisan Congressional Budget Office, the policy change could save taxpayers $94 billion over the next decade. That money would then be reinvested in federal grants for lower-income students to help offset the cost of going to college.

OK, so the "savings" will be redistributed to those the government deems worthy. But the interesting thing is that these savings are actually the interest income on the loans paid to the lenders for taking the risk of the loan. It's the lender's profit - not subsidies. If we characterize this as savings, then the federal government could "save" $5 trillion if it nationalizes the entire financial industry. Better yet, if it nationalizes the entire economy, we could "save" even more. The problem here is obvious - a new entitlement to Obama's Chosen People and if and when the loans go bad, we taxpayers get screwed. Sounds like another deal we can't refuse...