It’s true that they are creating new money but only temporarily. Forgiving a loan is truly creating money (permanently). Not saying it’s bad to forgive the loans but there is clearly a difference.

My stance on it (although I am not a US citizen) is that without adding some law that restricts prices for college tuition this actions will do nothing good and only helps to perpetuate a system that moves the money from a younger generation to the pockets of a select few.

The Fed is currently trying to get banks to print less money. If the government was enacting a new policy that led the banks to make hundreds of billions of dollars in additional loans, that would also be a terrible idea as long as inflation is as high as it is.