Those 'slackers' are also working, producing products and services, paying taxes, rent, consuming and raising families. They do not laze around on a couch all day. The loan just ends up being a burden on entire society over these many people, literally sucking in the economic value they generate without letting it go into the actual economy. And that's the key part - those people are someone's customers. Could be yours. Could be your company's. The moment those loans are canceled all that money is going to go into the economy through spending. Precisely what is needed.