Student loan forgiveness frees up money for millions of Americans but it won’t spark a spree of stock buying like pandemic-stimulus checks The Biden Administration is gearing up to deliver $300 billion in student loan forgiveness. Unlike pandemic stimulus checks, retail investors are unlikely to use debt relief to rush into stocks. Individual investors now have to contend with hot inflation and a slump in asset prices. The US government''s $300 billion student loan forgiveness plan will provide financial relief to millions of Americans, but don''t expect a replay of the "stimmy" boom of retail investors who used pandemic stimulus checks to load up on stocks and cryptocurrencies, market experts told Insider. "I don''t expect it to ignite a new meme-stock rally. These are monthly payments that will lead to some of those assets flowing into the market over time that otherwise would have gone to pay off debt. I don''t think there''s going to be a big wave of capital rushing into the markets," Richard Smith, CEO of RiskSmith , a risk-assessment tool for retail investors, told Insider. President Joe Biden recently outlined the program that cancels up to $20,000 for some borrowers of federal student loans.