The federal government has guaranteed payment of student loans to banks for many years, but that has changed with the stroke of the presidential pen. With this change to the loan system, the federal government will no longer subsidize banks. Rather students will now go directly to the federal government to obtain loans to attend college. President Barack Obama eliminated banks as the middleman, in part, because of the $68 billion savings to American taxpayers. That money will be invested in higher education. However banks are not eliminated completely from the student loan process, they will have an opportunity to grow as a business by servicing the loans.