Outstanding student loan debt will top $1 TRILLION dollars in 2011. Instead of watching these tens of millions of monthly payments disappear into bank coffers--the very source that was to blame for our current financial situation--imagine if this money was made available to be spent by consumers? It would create massive influx of dollars into the economy, spur growth and job creation, and kick-start a more permanent recovery that would quell fears and stabilize markets.
Student loans are paid off interest-first which means that, in most cases, debtors end up paying the principle once or twice over by the time the loan is eventually paid off. The banks will have already done just fine on these loans and have done little to aid the economic recovery--even after being bailed out by US.