It's a government takeover of a private enterprise that makes sense — and saves money.

On Thursday, the U.S. House passed a massive makeover of the student-loan market, essentially eliminating the involvement of private lenders in originating low-cost, government-backed college loans.

Rather than subsidizing private student-loan entities like Sallie Mae, the federal government will loan money directly to students. The move is expected to save more than $80 billion over 10 years, according to the Congressional Budget Office. The U.S. Senate is expected to produce a similar bill.

It's a sensible, long overdue step. For too long, private lenders have been profiting from these loans with little risk to themselves, thanks to generous government subsidies and loan guarantees. The market also needs stability; the financial crisis and and reductions in government payments in 2007 have caused turmoil for private lenders in recent years.

And even though the industry insists that it can provide better service and support than the government, lenders and private banks can still bid to service the loans originated by the U.S. Treasury.

Savings from eliminating the middleman will be put to good use: to expand the Perkins Loan Program and increase Pell Grant awards to low-income borrowers. Some money would also be used for school construction projects and community college programs.

For students struggling to pay for higher education, that's good news. They and their colleges need all the help they can get, especially with enrollments soaring as students seek refuge from a brutal job market. If they can emerge from this economic slump with a better education and less debt, their future, and the country's, will be brighter.