Here is what is going on based on my research. Outstanding Federal Student Loan Debt is skyrocketing, wages after you leave school is not.
1. More people are spending longer time in school,
2. The price of tuitition is going up,
2. Pell Grants have been reduced,
4. More people are going to school because of low wages for unskilled work. Offshoring of jobs to other low wage countries.
Less Loans Written Off:
Allowance for the Subsidy:
You are going to have a bunch of dead student loan borrower with massive amounts of debt going to hit the books. Remember the only way the Department of Education will let you go is if you die, become quadriplegic, or through bankruptcy.
One way to fix this problem is estimate this impact on the books. The politician way is to 'forgive' student loans so that the number of people dying with $200,000 in student loans does not hit the books. This account never spikes up drawing media attention down the road, and you can keep selling this college ponzi scheme to future generation. Plus it looks goods and can give you more votes, while hiding policy flaws such as fair trade deals.
Less Loans Written Off:
The Department of Education does not write off bad debt like the private sector, which means there is a huge time lag and financial tsunami that will hit. The people dying now with student loan debt went to school when shit was affordable, 1965-1970 and nobody went to college because there was plenty of good paying jobs. Now when the people my age hit become President Biden age, there is going to be huge number hitting the books. In 2013 time frame, they implemented Income Debt Repayment.
Whenever a politician or booty bandit in prison is overly friendly or generous giving you honey buns, they have an alterior motive. Here they don't want a spike in Loans Written Off which is only done when you die versus the private sector where not paying after a couple of months causing your account to get charged off.
IDR was setup to cut this down, and doing this student loan forgiveness is another clever scheme.