27. The Debt Sentence II: Demagogues, Proletariats & The Reagan Devolution of Student Loans

In the wake of the tumultuous 1970s, marked by scandal, economic troubles, and societal upheaval, the 1980s saw a seismic shift towards conservatism under President Reagan. Deregulation and tax cuts fueled a period of economic growth, resulting in the rise of corporate power and wealth, and the impact of globalization. As the Cold War came to a close and cultural changes such as the emergence of MTV and the AIDS epidemic took hold, America seemed to be on a path to prosperity. But hidden beneath the veneer of progress was the twisted tale of Uncle Sam's Federal Student Loan Program, a seemingly noble venture that would ultimately become a beast of burden, ensnaring countless innocent borrowers in insurmountable debt. Sallie Mae and other big banks have since profited from this ill-gotten gain, while the feds have turned a blind eye to the carnage they have caused.

 

Explore Further:

• How the Threat of an ‘Educated Proletariat’ Created the Student Debt Crisis - Genevieve Carlton, Ph.D., BestColleges.com, 09/18/2022
• Universities Are Becoming Billion-Dollar Hedge Funds With Schools Attached - ASTRA TAYLOR, The Nation, MARCH 8, 2016
• From Master Plan to No Plan: The Slow Death of Public Higher Education - Aaron Bady and Mike Konczal, Dissent Magazine  Fall 2012
• The Sandia Report On Education: A Perfect Lesson In Censorship -  Projectcensored.org 
• What 'A Nation At Risk' Got Wrong, And Right, About U.S. Schools - Anya Kamenetz,  NPR, April 29, 2018
• REAGAN WILL SPEED COLLECTION OF DEBTS ON FEDERAL LOANS By Howell Raines,  New York Times, Feb. 27, 1981
• Senators urge repeal of tax reform 'mistake' on student loans - GEORGE LOBSENZ, United Press International, MARCH 15, 1988
• The Debt Trap: How Student Loans Became a National Catastrophe - Josh Mitchell, Simon & Schuster
• Indentured Students: How Government-Guaranteed Loans Left Generations Drowning in College Debt - Elizabeth Tandy Shermer, Bellknap Press