Simple Notes: What is a Federal Loan Guarentee?

What is a "federal loan guarantee"? It is the privatization of the profits and the socialization of the losses. How does it work? They scream "we need to get rid of big bad government" and "privatize" for more efficiency. Big Banks step in and say "we can save the student loans from government" They "privatize" student loans, charge double the interest from the federal student loan they get for a bargain FROM THE FED GOVERNMENT!, sell said loan to no other options available students, gain all the profit and if the student defaults...it's guaranteed by the tax payer AKA "us" and we SOCIALIZE the losses....Neat business model isn't it?