Why Did Reagan Weaponize Student Debt in 1981? (On Purpose)

Описание: In 1981, Reagan cut education funding 25% and restructured student loans for profit. Your grandpa got free college via GI Bill. You got $40K in debt. Student loan debt in America: $1.8 trillion. Average graduate debt: $40,000. Some owe over $200,000. You can't discharge it in bankruptcy. It follows you forever. Reagan said educated workers were "dangerous." This explains why college became a debt trap instead of opportunity.

Your grandfather went to college on the GI Bill between 1944-1956. Completely free. Zero debt. Full tuition covered. Books and supplies paid. Monthly living stipend of $50 (equivalent to $850 today). He graduated debt-free and bought a house immediately.
Even after the GI Bill ended, college stayed affordable. UCLA tuition in 1975: $700 per year. You could pay for college with a part-time summer job. Work three months, study nine months. No debt required.
Then Ronald Reagan was elected president in 1980.

In 1981, Reagan's first budget slashed federal education funding by 25%. Not trimmed—slashed. State governments followed. Universities raised tuition. Financial aid didn't keep up. The gap exploded.
But cutting funding was only half the story. Reagan restructured how student loans worked. Before 1981: low-interest, government-subsidized loans designed to help students. After 1981: profit-driven private lenders, higher interest rates, worse terms.
And Reagan was explicit about his intentions. In 1967, as California governor, he said: "We are in danger of producing an educated proletariat. That's dynamite. We have to be selective about who we allow through higher education."
Read that again. He believed too many working-class people getting college degrees was dangerous. Educated workers ask questions. Demand fair wages. Challenge authority. Threaten the system.
So he made college unaffordable—not by banning education, but by weaponizing debt. You still need a degree for middle-class jobs, so you have no choice. Take the debt or accept permanent lower-class status.

This video explains:
→ The current student debt crisis: $1.8 trillion, 45 million borrowers, 6-7% interest
→ What the GI Bill actually provided (and why it worked)
→ How college stayed affordable through 1975 (summer job = full tuition)
→ Reagan's 1981 education budget cuts (25% reduction)
→ How student loan restructuring turned education into profit
→ Reagan's 1967 quote about "educated proletariat" being "dangerous"
→ Why you can't escape student debt (bankruptcy-proof by design)
→ How debt became a control mechanism, not an accident

CHAPTERS:
0:00 The $1.8 Trillion Debt Crisis You're Living
0:30 The Debt Trap: Can't Escape, Can't Discharge
2:00 When College Was Free (The GI Bill Era)
3:30 How Reagan Weaponized Education in 1981
5:00 Your Debt Isn't Your Failure—It's Policy

THE DATA:
Total U.S. student loan debt: $1.8 trillion (2026)
Number of borrowers: 45 million Americans
Average student debt: $39,500 per graduate
25% of borrowers owe $50,000+
10% of borrowers owe $100,000+
Interest rates: 6.0-7.5% (higher than most mortgages)
Student loans survive bankruptcy (cannot be discharged)
GI Bill recipients (1944-1956): 7.8 million veterans—FREE
UCLA tuition in 1975: $700/year (payable with summer job)
Reagan's 1981 education funding cut: 25% reduction
Student loan debt in 1990: $200 billion
Student loan debt in 2000: $480 billion
Student loan debt in 2010: $830 billion
Student loan debt in 2026: $1.8 trillion (exponential growth)
62% of recent graduates work jobs that don't require a degree

THIS IS PART 3 of my "How We Got Here" series examining the policy decisions that destroyed the middle class:
→ PART 1: The Hidden Tax (WWII taxation that built the middle class)
→ PART 2: The Housing Program Nixon Killed in 1973
→ PART 3: Reagan's Student Debt Weapon (you are here)
→ NEXT WEEK: The Pension Heist (How Wall Street Stole Your Retirement)

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RELATED VIDEOS IN THIS SERIES:
📹 Video 1 - The Hidden Tax (WWII):    • How WWII Secretly Funded the Modern Middle...  
📹 Video 2 - The Housing Program Nixon Killed:    • The 1942 Tax Trick That Built (And Killed)...  
📹 Coming Next Week - The Pension Heist: [link to announcement]

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DISCLAIMER: This video presents historical education policy analysis for educational purposes. I'm not a financial advisor or political consultant. This is not financial or legal advice.

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