Full disclaimer: I am a boomer and was once one of those who believed that government could do nothing better than the private sector and should always be limited to only the things business couldn't do. Life has taught me the opposite as I aged.
The same generation who is having their social security funded by our paychecks, who then vote for politicians who want to slash it before we get a chance to benefit from it.
This is not possible in our existing monetary system. My payroll deductions from the past, and yours from the present, only reduced our spending power, not fund anything in the future. The federal government is the monopoly issuer of US dollars in the economy, so it has no use for its unit of account, either as taxes or bond revenue, that would better enable it to spend for anything that can be resourced in the private sector. It can always afford whatever it can buy with the US dollars it creates on demand, including our retirement and education.
The deductions from our paychecks, unlike normal taxation, include a promise to repay with interest at a later date (retirement). This repayment requires the creation of new money as the deductions were used to pay down the debt the money was created from.
Other than this mostly meaningless reduction in a tracking number at Treasury, your rather large percentage of earned wages deducted did nothing to "fund" your benefits. Likewise, the collection of student loans would be as useless to the government and counterproductive to the general economy.
Everyone (except the corrupt lenders) will benefit from the erasure of this debt. It will mean more people can afford to buy houses and vehicles without the shadow of a large debt hanging over them. It will mean that their government won't be the cause of their economic demise and might be viewed as a positive in their lives again. Most of all, it will mean that they can do more than simply survive after doing everything right as prescribed.
The loans have been in limbo for a couple of years now, meaning that any projection of inflation, as a result, would have already hit long ago. I worry that after capitulating to his voters for political expediency Biden will restart payment and collections for the remaining loans.
This would present the possibility of an economy killer, but his history with the subject says this is likely what he is contemplating, after the midterms of course. His donors are probably demanding their pound of flesh from the "little people" who the party posits as their "base".
