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

this will be a transfer from taxpayers to college graduates.

probably from future taxpayers, since repayment of loans mostly be in the future.

and there are plenty of groups that seem more deserving of government transfers, like the poor (adults and children), minorities, uneducated, old, sick, disabled,