Although the presidency does not have the power to discharge loans held by the federal government, President Obama can and should champion the cause of discharging student loans held by the federal government.
This dischargement and complete forgiveness of student loans would allow for a major lift in the economy as spending that was reserved for student loan debt would be used for purchasing power elsewhere, resulting in higher growth rates and, as a distant result, lower unemployment as the increased economic boon would have far-reaching benefits.
This would also remove the punishment of crippling debt lying on graduates who chose to enhance their education by pursuing advanced degrees or specialized education.