There are already some student forgiveness plans out there. For example, law student loans may be wiped away if you work 10 years for a qualified non-profit (and meet a few criteria). These were put in place under Bush. A tax law professor who clerked for Scalia once explained why he thought student loans should be forgiven more (not necessarily wiped off the books but he wasn't opposed to that either). Basically, let's say you take out 100k in loans for law school. You get that 100k from other tax payers. But the return is that this creates a future high income earner who will pay more into the system. Additionally, he said that people don't save money. So the $850 monthly student loan repayment can go to the DOE or you can forgive it and the person will spend the $850 in the market and that money would flow out, as a combination of mortgage payment, car payment, entertainment purchases, etc. Forcing people to pay so much back in student loans hinders their ability to buy homes and start families. It also creates a discontented work force and creates generations of workers who think living paycheck to paycheck should be the norm. So, while the 100k payment to the law school would not be repayed, the money that the individual puts back into our economy more than makes up for it.