What consequences are there to “just forgiving” federal student loans?

Question

For context, I’m really referring to central banks. What would the consequences be if the central banks just decided to forgive entities that issue student loans, like FAFSA? I’m asking on a global scale and an individual household scale.

Thank you!

In: 13

Answer 1

Are you, personally, prepared to pay the cost of writing off those loans? No? Why should anyone else?