It is not the education institutions that take it in the shorts. They are paid up front.
The banks get shafted.
And they have to make the money up from we, the people.
So he's not really "forgiving" the loans. He's just soaking the Middle class once again. It's almost as if much of his effort has been focused on destroying the Middle class during his presidency because any socialist knows that if you kill that everything else falls. Just as planned.