Terrific summary from Brian Alexander on this study from a Bard College research team:
What would happen if the United States decided to cancel all student debt?
A Bard College economics research team (Scott Fullwiler, Stephanie Kelton, Catherine Ruetschlin, and Marshall Steinbaum) decided to explore what such a bold near-term future could look like in “The Macroeconomic Effects of Student Debt Cancellation” (pdf).
The tl;dr result? It’s a good idea for the country, for debtholders and non- alike. “Student debt cancellation results in positive macroeconomic feedback effects as average households’ net worth and disposable income increase, driving new consumption and investment spending.” They find other, noneconomic benefits as well.