[am1on]

technically it is destroying money due to the way loans are treated on bank balance sheets.

a loan is an asset to a bank and a liability to a borrower.

forgiving a loan destroys it as an asset (money-like) and causes deflation from a money supply standpoint even if it does increase the buying potential of a borrower.

Since all federal student loans are still in payback pauses for covid this will have negligible effects