The Federal Reserve in QE1 absorbed $1.3 trillion in toxic assets from multiple banking industries. The Federal Reserve could remove $1 trillion in student debt from graduated students with enormous amounts of debt.
Current US student debt continues to have a rising default, deferment, and forbearance rate. 8.8% of federal student loan recipients defaulted in 2010 alone.
A complete bailout on all student loan debt is the best solution for helping college graduates put money back into the economy.