Would it be better if banks owned all the debt? I think the really bad statistic is just how much student debt there is. Progressives in Oakland want the city

Would it be better if banks owned all the debt? I think the really bad statistic is just how much student debt there is. Progressives in Oakland want the city to create a municipal bank. If they do, maybe progressives will then complain "Y% of Oakland's assets are mortgages and small business loans." For any level of student debt, I think it is obviously better that the government own a lot of it, as the payments the government receives can be used for spending. The payments banks receive go to shareholders. In fact, given the government can borrow money at 2% while student loan rates are like 4-8%, it might not even be a bad idea to have the government issue treasuries and buy more student loans. Administratively, perhaps this would be bad for reasons I can't guess ex ante, but off the cuff I can't see why it's bad for the government to own lots of student debt, especially when government is what enforces the debt contracts (siphoning off your wages in the event of default, etc). One could argue that the government should just cancel all or most of that student debt. Maybe so, but if that would cause the government to forgo $X billion in revenue every year, I think it would be better to just have another $X billion in spending. However, if the $X billion would just go to more tax cuts for the super-wealthy then perhaps it would be a good idea.