The political moment we'll be in come January will weigh heavily in favor of, at the very least, some targeted loan forgiveness. The Republican controlled Senate will be in full obstruction mode again/still, and no doubt McConnell will either say it aloud, like he did at the beginning of Obama's first term, or he'll operate that way quietly. Their goal will be a one-term Biden. Combine that with an economy in need of economic stimulus, and tools entirely under executive control will be vital. This is one, and he simply must use it. Do it right, and money the fisc would be gobbling up gets redirected to economic channels that should help our recovery.
Pubs can whinge and whimper about moral hazard all they want. Besides the fact that they've lost the standing to complain about all forms of morality, the game the next few years will be about actually helping people, not corporations, economically. Do that, and Biden will have sturdy coattails in the midterms and a strong case for a second term. Fail to do it, and be prepared for Dem carnage.