What a "dumb" idea
Offering government loans directly to students, instead of the government giving the loan money to banks and having them skim $9B per year off the top. The banks really need to take that government education money right? That $9B per year wouldn't do needy students any good would it? Who cares about education when we can give more to banks!?
If banks want to make student loans they can, but they don't. They want to act as middlemen who profit without adding any value. You're right, this IS kind of like that "other" industry.