Indentured students How government-guaranteed loans left generations drowning in college debt

The roots of the student debt crisis are explored in this comprehensive study by Loyola University history professor Shermer (Sunbelt Capitalism). She traces the history of college tuition financing from the 1862 passage of the Land-Grant College Act, which provided federal funding for at least one college in every state, through debates over the GI Bill, which offered free college tuition to veterans returning from WWII. The Johnson administration's Higher Education Act of 1965 introduced federal guarantees for student loans bankrolled by private lenders, which were initially required to be paid back in 10 years, but neoliberal policies in the decades that followed slashed federal funding for higher education, resulting in tuition hikes and, in turn, more and more expensive student loans. Shermer astutely analyzes the myriad forces, including political pressure to protect states' rights, professors' concerns about government interference, and the rise of for-profit institutions such as the University of Phoenix, that have contributed to the state of affairs as of 2020, when 45 million Americans owed a collective $1.6 trillion in student debt, and argues that some form of free college is necessary to solve the problem. Though dense and scholarly, this well-researched history provides crucial context for understanding a thorny social problem. (Aug.)

Fittingly dedicated to "the 45 million of us, and counting, who together owe more than $1.7 trillion," this fascinating work delves into the thorny history of loans and aid to post-secondary students in the United States. Shermer (history, Loyola Univ. of Chicago) compellingly argues that mounting student debt, resulting from government-backed loans, has put home ownership, marriage, parenthood, and retirement out of reach for many Americans and often for their loan cosigners; indeed, the term "indentured" in the book's title is not meant to be hyperbole. Shermer considers the racial wealth gap and gender-based salary inequities and writes that many borrowers were not fully aware of the long-term implications of incurring heavy student loan debt. She also puts into context federal programs and legislation, including the Land-Grant College Act, New Deal work-study programs, the GI Bill, the Higher Education Act, the National Defense Education Act, Pell grants, and lending from the Student Loan Marketing Association (Sallie Mae). The book's appendixes offer data on the revenue sources of U.S. post-secondary institutions from the academic years 1909--10 through 1989--90; median household income by race and Hispanic origin (1967--2018); and consumer debt since 1945. VERDICT Readers curious about how students went from working their way through college to facing an untenable situation fostered by "creative financing" will appreciate this thorough volume.--Elizabeth Connor, Daniel Lib., The Citadel, Military Coll. of South Carolina, Charleston