Imagine how you would feel if you were from a family that had scrimped and saved to send you to college, you worked night jobs, etc. Only to find that at the end everyone else who had taken out loans had them forgiven (basically). What incentive is there to sacrifice or think ahead if this is what will happen at the end? I was panned for thinking such selfish thoughts at the act of someone so generous.
I think it would be more reasonable to give every student a $ gift at that point.
Watch out, mind you, if our government gets into the business of doing this. You'd better double check whether you think it's an absolute good thing.
When you pay someone's debts, you assume some participation into the choices they've made, or some small tacit approval of their choices. And when you forgive debt, it implicitly chooses some people over others. People who made what can objectively be called responsible choices to save and not take out debt will not be happy with what those who are less responsible receive.
Are we only going to do this for current students? Are we going to do this for every student to come? What happens when a person knows that whatever debt they take out will be forgiven?
Think to the unintended consequences of what you thought were just good intentions. If your level of logic is "what could be so wrong about helping people get out of hardship", then maybe you shouldn't be in the business of administering / making economic policy...