False. The government isn't holding the note for student loans: banks are. Paying off these student loans goes to a bank's balance sheet whereas checks sent to people get spent on any number of consumer goods (or invested into Wall Street Bets stonks if that's your thing).
If the interest amount is more than 0%, it may give more income over the course of the loan term for the person with debt than it wipes out at the bank.
The money someone was spending on the loan and interest may very well go to any number of consumer goods, investments, or other items, though.
If you take issue with that, then by the same logic you could also argue that any attempt to help a person pay off debt is encouraging frivolous spending - after all, once the debt is repaid, the person has additional income available which they can spend on things.
> The money someone was spending on the loan and interest may ...
Not in this case. Federal student loan payments have been paused for over 2 years now, people have not been making monthly payments for these loans.
Huh? I thought private student loads were pretty rare nowadays, and most loans are now through the federal government.
Also, according to https://finance.yahoo.com/news/student-loans-not-eligible-fo..., this loan forgiveness doesn't apply to private student loans:
> Private student loans, by definition, are private and are not eligible to be forgiven. These are loans the borrower owes to student loan providers and not the federal government. Mr. Biden's announcement won't change how these are repaid and borrowers should expect to continue to repay them as they have to date.
A student loan was approved on a gamble.
Now the lenders are trying to find a way to guarantee their returns by making everyone else pay.
None of those things are true for student loans.
https://www.investopedia.com/how-to-file-student-loan-bankru...
Mostly false. I prepped and processed bankruptcies for two years and I only came across one instance where a student load was dischargable under chapter 7. IIRC, under a Chapter 13, they can be consolidated as an unsecured debt. I only did a few Chapter 13s so I'd have to go back and reread that part.