I find it difficult to understand how taking money from people who earned it, even if used to "forgive" loans borrowed with expectation of repayment, is a means

I find it difficult to understand how taking money from people who earned it, even if used to "forgive" loans borrowed with expectation of repayment, is a means to increase economic activity. How is this different than the broken window fallacy? The students, loans forgiven, are now going to spend their former loan payments, sure, but the former recipients of those payments will not be spending them. Sounds like zero-sum game with a feel good motive.