This is not a new idea, but I believe it may actually get traction now. And I don't believe doing so would break the backs of the lenders as the money is created out of thin air to begin with under their fractional banking/currency creation system. It is a shell game set up to allow the money masters to create whatever they wish from thin air and exchange the illusion for real goods and labor. I can't fathom how much they extract from nations daily with their scheme.

If you look at the various stimulus packages under Bush and Obama, it could have been used for something like this. It was a long time ago, but when they were handing out all that money to the banks I read one breakdown that said they should have passed it out equally to all adult age registered voters, that each would have received over 100K each. That surely would have jump started the economy, and probably kept those banks balance sheets looking good as well as much of it would have flowed into their hands quickly (not to mention the tax collected off the velocity that would have happened).

I say wipe it clean, but you have to also fix the problem. No more assistance for classes that have no real world application. If a college wants to offer them, those taking them should pay themselves. Ron Paul pointed out how insurance was partially to blame for higher than average inflation on medical costs, and this same principle applies to tuition.

There is so much more to an economy than this very important aspect (which you cover a lot of) such as military spending, oversized contracts to monopolies and others who have the in with the purse strings in congress, foreign aid etc, but this problem is real and has created a huge class of indentured servants. Which was what it was designed to do.