This seems more like a bailout than anything, which I don't think is the solution. Further, their site states...
While current borrowers would be eligible for full forgiveness under the plan, future borrowers would be subject to a $45,520 cap on forgiveness (based on the average overall cost of a four-year degree at a public university). The aim is to incentivize students to be mindful of educational costs and for colleges and universities to control tuition increases.
That wouldn't really help those that are 300 or 400 thousand dollars or more in debt. In my opinion, the solution is to both lower the interest rates, AND cap the amount of money that the federal government can give to students. Because its essentially unlimited right now, schools have no reason to stop increasing tuition. If the money supply was squeezed, it would suck for a year or two, but I think shortly after that you'd see school tuitions come down.
The cost of education might not change, but you'd see schools, especially private schools that have no state funding, come up with ways to help fund their own students' education. They'd probably take some of their revenues and invest them back into the students instead of building brand new amazing facilities, giving staff raises, and buying unnecessary technology. I think this is the only way to slow tuition increases and to get a handle on student debt. We need to CHANGE the system, not patch one that's broken. That's just my opinion though.
