Sallie Mae and dividends

SO.... they killed the subsidies for companies that provide financing for student loans.

As we know there is no financing for the student loans.

Why provide subsidies for companies that arn't doing what they are getting the subsidy for?

and as a Dye in the wool Capitalist... why would the free market need a subsidy?

Especially with the fed buying any of the student loans.

here is the catch-22 on dividends for the banks.

NONE OF THE TARP BANKS can increase the dividends till they pay off the tarp money.
Tarp money can't be paid back for 3 years.

They will be resistant to cut dividends, because if we recover this year, that is 2 more years till they can start moving the dividend. that caps the Yield and makes it hard to justify higher stock prices.