It is clear, from any economic sense, that compensation paid in the private sector is more beneficial to society than that paid in the public sector. This is because amounts in the former is controlled by people risking their own money making sure it is maximizing output for a given input. (It also works for charities funded by people parting with their own hard earned money).
Federal state and local governments and government funded not-for-profits are less good for society, and they normally pay too much for what they receive in services. So how stupid must one be that we want to incentivize- by forgiving student loans – those who would take more from and contribute less to society??