Student loans

The student loan program started in 1965 was handled through banks but the money was always government money. The banks would take government money at a low rate and loan it to students at a higher rate, a typical bank activity. President Obama decided that the government should eliminate the banks from this equation and pass the savings along to the students but the interest rates at 6.8% is still high. The rate was 6.8% when the government took over and the rate went down to 3.4% but now it is back up to 6.8%. What happened? Instead of the money being used to keep student loan interest rates down it is being used for other purposes, one of which is Obamacare.