Erasing student-loan debt could create a "moral hazard" that would weaken the effect of any economic stimulus, Moody's Investors Service said in a recent report.
Outstanding student-loan debt is $1.5 trillion, equal to 6.9% of US gross domestic product.
Canceling student-loan debt could hurt the US government because it collects revenue on student loan payments, the report said.
Still, Moody's acknowledges the "significantly higher burden" of student loan debt in the US today.
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