Forgiving student debt would provide considerable stimulus to the U.S. economy, as forecast by Moody's Investor Service and quoted on Investopedia, with potential benefits like increased homeownership and small business growth. ETFs in Focus The impact of rising student debt isn't limited to reduced spending power, it also casts a shadow over real estate purchases and entrepreneurship levels in the country, among other things. With credit card debt already surpassing the $1 trillion mark, persistently high inflation and a hawkish Fed have already resulted in increased default rates.