2 ms·The federal government is the one holding all that debt, so that is exactly what is going to happen.by vonmoltke 7y agoThe federal government is the one holding all that debt, so that is exactly what is going to happen.apatters 7y agoIf we're being cynical, I think they would forgive the debt and bail out any large financial institutions who are damaged by the act of doing so. It would be very in character.sokoloff 7y agoThere is a high 8/low 9 digit inventory of private student loans, not held federally.