Assuming there is exploitation of students by universities, it doesn't. But it would permit students to discharge their debts.
So we just let the problem go on?
Student loan forgiveness does eliminate one problem: a heavy drag on students with significant student debt. But here you touch on something that I don’t think has been touched on before: we cannot continue funding higher education by lending 18 year olds tens of thousands of dollars each year in order to pay for their schooling.
We really do need to recommit to public funding of education, at least at the levels it was supported in the 1960’s-1970’s. In the 1970’s states provided 65% of the funding fir state universities. Today, states provide less than half of that level of funding. At the same time, the necessity of holding a university degree in order to have financial stability has increased.
Student loan forgiveness does need to happen—now. But so does a commitment on the part of states to fund state colleges and universities. Forgiving student loans is a bandaid—a temporary fix of a much larger and more complex problem.