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I think this is kind of a nonsensical question but please feel free to correct me if I'm wrong.

Imagine you and I agree to a deal, both verbally and contractually (i.e. on paper). I give you 10 euros and you pay me back 11 euros in exactly 1 year.

Now 6 months into the deal you suddenly ask yourself: "Well who would lose out when this debt gets cancelled?"

Do you see now why I think it is a nonsensical question?

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Sure, it would seem obvious that the loaner is the one to lose out. The things it, I'm not sure who all the various loaners are these days or how much the economy itself would be affected by these people suddenly not having $1.3 trillion (or whatever the figure is these days) coming to them.

The question is can future students get any loans to finance their studies then (or at what rates/conditions? Good chance they would lose out too.

What happened if you sold the default risk as a swap to a 3rd party. Who loses now?

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