Every dollar "forgiven" is a dollar of debt that will go away - just like in bankruptcy.
This will have the effect of reducing our nation's money supply by the same amount "forgiven".
Add this up and it means a much longer and deeper recession than we were already facing.
This idiotic move will end up hurting a whole lot of people who are currently living on the edge - including those who have had certain amounts of their loans "forgiven".
I can't stress enough how stupid of an idea this was...
Actually, it’s only forgiven to the borrowers. The federal government will print the hundreds of billions of dollars to give to the schools on the taxpayers’ behalf, so it increases money supply and inflation. And it decreases motivation for future students to honestly take out a loan with an intent to pay it back. And it decreases incentive for schools to lower tuition fees.