Final answer:
Forgiving student debt tends to have a positive impact on students by potentially improving their economic opportunities and reducing financial stress, allowing for greater freedom in career and life choices.
Step-by-step explanation:
Forgiving student debt can significantly impact students, often in positive ways. For instance, it may lead to improved economic opportunities for students as it can alleviate the financial stress associated with repaying loans, thereby allowing graduates to invest in their careers and other life goals such as buying cars or housing. Additionally, without the burden of debt, students might be more inclined to take risks, such as starting a business or pursuing jobs in lower-paying but highly rewarding sectors. However, there are concerns that forgiveness might encourage higher future tuition rates, considering colleges might anticipate that future debts could also be forgiven. Increasing the amount students can receive under federally funded programs like the Pell Grant, lowering interest rates on student loans, and offering education tax credits—as were proposed under the Obama administration—are efforts made to accommodate the rising cost of college education, which has grown significantly faster than typical family incomes.