The U.S. government does. Most student loan lenders are huge institutions, such as commercial banks or the government (specifically, the Department of Education). Until 2010, student loans were usually originated by a private lender but guaranteed by the government. The Health Care and Education Reconciliation Act of 2010 ended the practice, replacing such guarantees with direct lending from the federal government.
24 Today, more than 90% of student debt consists of public loans—that is, financing provided or backed by the government.3https://www.investopedia.com/terms/s/student-loan-forgiveness.asp
Meanwhile, the Penn Wharton Budget Model now estimates debt cancellation alone will cost up to $519 billion. Loan forbearance will cost another $16 billion, the research found, while the new income-driven repayment could cost $70 billion.
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