He’s still fighting to overhaul the absurdly run student loan business to save the government billions—private lenders profit off the loans, even though they’re guaranteed by the government—but industry lobbying and the resurgent power of Congressional Republicans may kill the plan, according to the Times.

[Emphasis added for all those who think that the Massachusetts election represented a great populist outcry for reform and government accountability.]

House and Senate aides say that the administration’s plan faces a far tougher fight than it did last fall, when the House passed its version. The fierce attacks from the lending industry, the Massachusetts election that cost the Democrats their filibuster-proof majority in the Senate and the fight over a health care bill have all damaged the chances for the student loan measure, said the aides….

Good thing education isn’t an important industry in Massachusetts….