Well, apologies, it was not my intent to suggest your moral code was not rational. Absolutely logic should apply, and I have no doubt you are concerned with what helps the most people.
I just don't know that I would agree that the morality you're describing would fit "Utilitarianism" in the philosophical sense that I was thinking of it: "Utilitarianism is a version of consequentialism, which states that the consequences of any action are the only standard of right and wrong. Unlike other forms of consequentialism, such as egoism and altruism, utilitarianism considers the interests of all humans equally."
https://en.wikipedia.org/wiki/Utilitarianism
Which, in this context, I would think would not necessarily prioritize which individual students have already paid off their student loans or not, compared to the larger picture of balancing things out, if student debt has gotten out of hand? Which I think is meant to be the point of the Senators suggesting loan forgiveness. I don't think they are likely motivated by some desire to try and help anybody cheat, or to cheat anybody.
One alternate moral code this can unfortunately conflict with though would be that of Virtue Ethics, which includes the Cardinal Virtue of Justice: "Justice is a quality or habit which perfects the will and inclines it to render to each and to all what belongs to them. The object of the virtue of justice is the other person's rights, whether natural or bestowed by Church or State... whereby the just man renders to each and all what is due to them in due proportion: what it is their moral and legal rights to do, possess, or exact."
https://en.wikipedia.org/wiki/Virtue_ethics
https://en.wikipedia.org/wiki/Cardinal_virtues
https://en.wikipedia.org/wiki/Justice_(virtue)
Obviously letting Wikipedia do the heavy lifting here, but the point is that this second approach is just as concerned with what is right, and with determining what that is through logic ... but, it also has this kind of underpinning to it that would have a problem with a Utilitarianism approach that just sought to make everything "easier" for everybody ... I guess because the feeling would be that it violates some Natural Law about people getting equal rewards for unequal effort: "According to natural law theory, all people have inherent rights, conferred not by act of legislation but by "God, nature, or reason."
https://en.wikipedia.org/wiki/Natural_law
In other words, perhaps you are bothered by the suggestion to forgive student debt because you feel it violates some authority of right and wrong that's higher than the US Senate?
That's fair enough if you think so, I guess I'm just saying -- seriously doubt any of the posters here are going to be likely to change your mind, if that's the case!