instead of people repaying it, the govt pays the debt
I get that it's only for public servants etc. and after 10 years, but is this not just a state subsidized money funnel to the bank? Shouldn't the root cause of the unrepayable debt be resolved instead of this?
All of these loans are backed by the US government, not a private bank. Forgiving then is just the government writing it off. The only private entities involved are the borrower and potentially the school.