Obama takes care of his friends, and the university is home to his socialist and communist friends. It is a critical player in the left's propaganda machine. Obama's takeover of the student loan business puts him the role of a drug dealer handing out free samples in order to increase his market.
In the meantime, like the effect of Fannie Mae and Freddie Mac on housing prices, the government's involvement in the student loan business artificially pumps billions of dollars into the higher education market enabling universities to exponentially increase tuition without having to add any value to their product.
Crony socialism is a great racket.