What happened with that ~$1 trillion that was in forbearance during the pandemic? Doesn't seem like it tanked the economy...
That money that should have been going towards student loans was saved, used to pay off credit card debt, and spent on goods and services. If anything, it was massively propping up the economy, because borrowers had hundreds of 'extra' dollars per month to support their consumerism.
I believe the comment was facetious - the easy observation is that a debt jubilee on student loans in many ways saved the US economy. It is my cynical opinion that the Biden administration knew the Republicans would strike down everything they could but that if they managed to pass temporary extensions that would expire during election season, they would be able to make an election issue out of something that drives youth voter turnout.