Sallie Mae, the former GSE and current student loan powerhouse, had a deal to go private, and it’s now in jeopardy.

There are two reasons, the difficulty in obtaining capital in the past few months, and the fact that Congress has reigned in some of the absurdly high fees in the guaranteed student loan business.

The fact is that the GSLs are handled better and cheaper by the government than by for-profits, and hopefully this market will move increasingly in that directions.