🎓

The Origins and Impact of Student Debt

Apr 22, 2025

The Origin of Student Debt: Reagan Adviser Warned Free College Would Create a Dangerous Educated Proletariat

Context and Current Relevance

  • Student Debt Crisis: President Joe Biden announced federal cancellation of a portion of outstanding student debt, highlighting the issue of Americans owing over $1.6 trillion for higher education.

Historical Background

  • Ronald Reagan's Governorship: In 1970, Reagan's reelection campaign as California's governor involved controversial actions against the University of California system, including shutting down campuses amid Vietnam War protests.

Roger A. Freeman's Perspective

  • Freeman's Warning: Education adviser Freeman claimed that free education would lead to an 'educated proletariat,' seen as dangerous and linked to unemployment.
  • Historical Reference: Freeman cited the rise of fascism in Germany as a similar situation.

Policy Shifts Under Reagan

  • Cutbacks and Tuition: Reagan pushed for reduced state funding for public colleges, advocating for tuition fees supplemented by loans.
  • FBI Involvement: Reagan cooperated with the FBI regarding concerns about protests and leadership at UC Berkeley.

Broader Conservative Movement

  • Nixon and Agnew: President Nixon and Vice President Agnew echoed concerns over college protests and admissions policies.
  • Intellectual Support: Conservatives saw free education as creating unrealistic expectations among working-class students.

Shift in U.S. Education Policy

  • From Free Education to Student Debt: Pre-1970s, bipartisan support existed for state-funded education. Post-Reagan, significant increase in tuition and student debt.
  • 2007-2009 Recession: Accelerated student debt growth due to state funding cuts for colleges.

Current Crisis and Reflections

  • Biden's Actions: Viewed as a temporary solution to a longstanding crisis.
  • James Madison's Vision: Historical advocacy for accessible education to empower citizens.
  • Future Path: Suggests reviving the vision of a well-educated populace as a national asset rather than a threat, with costs shared by society.