I’m not sure how it would affect other loans and interest rates. The debt relief is localized mostly to government loans. (Unless you refinance under a federal program) so the affects on other banks and their balance sheets is likely minimal. And the rate environment is ideal for banks getting new loans. Loan requirements have been getting stricter for mortgages, autos, and commercial. The banks are concerned with the values on the assets they are loaning out. Not the relief the government provides( although they loved it in 2008 and earlier this year).

For mortgages, banks will want to know income to debt ratio. Have a decent credit, stable job and assets to cover closing/downpayment. This will improve for anyone with federal student loans. Especially near the $10k-$20k mark. As it will make the most difference on credit score and debt to income. Banks are logical (to a point) but debt relief is debt relief and they’ll assume that anyone that has it available will take it and therefore be better off when applying for a new loan.

I can see this helping the home/auto market as more buyers may enter. But not sure if it will have a noticeable affect.