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

We have an economy that’s based on collateralized debt. There’s nothing else propping up capitalism if we free the indentured servants and this would make a lot of people who profit off of indentured servitude very mad.