Douglas Olsen
During the 19th century, college education in the United States was largely free. Colleges trained students from middle-class backgrounds as teachers, ministers, and community leaders who, after graduation, were to serve public needs. However, in the late 1960s, state universities began charging tuition fees. This shift was influenced by various factors, including social changes related to civil rights, legislation, and student loans. The transition from free to fee-based education was gradual, with some universities implementing educational fees that avoided the term tuition. The increasing cost of college and decreasing state support have contributed to the surge in student loan debt, impacting the accessibility and affordability of higher education in the United States.
| Characteristics | Values |
|---|---|
| Year state universities stopped being free for students | 1960s |
| First state university founded with free tuition | University of Virginia, 1825 |
| First land-grant institution founded by Morrill Act | Kansas State University, 1863 |
| Student Loan Marketing Association created | 1972 |
| Student Loan Marketing Association privatisation begins | 1997 |
| Average student debt for 2018 graduates | $30,000 |
| Total US student loan debt | $1.6 trillion |
| Student loan debt increase between 2004 and 2019 | 3819% |
| Tuition and fees increase at 310 national universities, 1995–2015 | 180% at private schools, 225% at public schools |
| Average total cost of a four-year college in 2015 | $25,409 |
| Average total cost of a four-year college in 1968 | $6,352 |
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What You'll Learn
The 19th century: communities and states covered tuition fees
During the 19th century, college education in the United States was largely free. Students didn't have to worry about tuition fees and debt, as higher education was more about contributing to society than personal gain. Communities and states covered tuition fees because students were contributing to society by serving the common good. For instance, they would teach at high schools for a few years or take up leadership positions within local communities.
Some colleges, such as the College of William and Mary, offered comprehensive tuition scholarship programs that covered tuition fees in exchange for a pledge from the student to engage in some form of service after graduation. From 1888, William and Mary provided full tuition scholarships to about a third of its students. In return, these students pledged to teach for two years at a Virginia public school.
The Indiana Constitution of 1816 called for "a general system of education, ascending in a regular gradation, from township schools to a state university, wherein tuition shall be gratis, and equally open to all." However, this was never realised at the university level, and a later iteration of the constitution, signed in 1851, omitted this line.
The Morrill Act, passed in 1862 under President Abraham Lincoln, instituted a system of land-grant colleges, most of which were low cost, and some of which offered free tuition. The University of California system was created in 1868 with the decree that "admission and tuition shall be free to all residents of the state."
Stanford University, founded in 1891, charged no tuition for almost three decades until 1920. However, the cost of educating students rose significantly in the second half of the 19th century. This was due to the explosive growth in the number of colleges, especially between 1900 and 1930, and the shift from colleges being seen as a public good to being viewed as a means of personal gain.
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Post-WWII: social changes led to an end to tuition-free state schools
Tuition-free state schools in the US began to end following World War II due to social changes, particularly in relation to civil rights, legislation, and student loans.
During the 19th century, US college education was largely free. Students didn't have to worry about tuition fees and debt as higher education was more about contributing to society than personal gain. For example, students would teach in high schools for a certain number of years or take on leadership positions within local communities. However, the cost of educating students rose significantly in the second half of the century.
In the early history of the US, only the "well off" typically attended college as most people had to work for a living and didn't have the money for extra fees. Businesses and society didn't usually require specific job-related degrees, so those who did attend college often only took the courses they felt they needed. This meant that overcrowding in schools was not an issue.
In 1965, under the Johnson administration, the federal government began guaranteeing student loans provided by banks and non-profit lenders. Federal tax dollars were used to guarantee these loans for students attending public or private universities, creating the Federal Family Education Loan (FFEL) program. As a result, states had less money to fund their public universities, and tuition fees began to rise.
By the 1990s, every "formerly public" school had become paid for by tuition costs, resulting in a student debt crisis. Tuition costs soared by 3,819% from 1964 to 2019, and student loan debt now tops $1 trillion. The average student debt for graduates in 2018 was $30,000, with one million new defaults on student loans each year.
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1960s: federal government began guaranteeing student loans
In the 19th century, US colleges and universities offered largely free tuition. For instance, the University of Virginia, founded in 1825, was the first state school meant to be tuition-free from its inception. Stanford University, founded in 1891, charged no tuition for almost three decades until 1920. The College of William and Mary, in 1888, provided full tuition scholarships to about a third of its students. In exchange, students pledged to teach for a certain number of years at a Virginia public school after graduation.
However, the cost of educating students rose significantly in the second half of the 19th century. This prompted colleges to introduce loan programs to help students finance their education without relying solely on philanthropic funding. Early private student loans in the US began at Harvard University in the 1830s.
The federal government began offering student loans in the late 1950s through the National Defense Education Act (NDEA) of 1958. The NDEA was enacted to enhance national defense capabilities and economic competitiveness by broadening access to higher education. The first federal student loans were issued directly to borrowers to help ensure the availability of highly trained professionals in scientific and technical fields.
In 1965, under the Johnson administration, the federal government began guaranteeing student loans provided by banks and non-profit lenders. This marked a shift from states using taxes to fund their public universities to using federal tax dollars to guarantee student loans for public or private universities. This eventually led to the creation of the Federal Family Education Loan (FFEL) program.
The switch to direct lending by the federal government improved the borrower experience by streamlining the application process. It also created access to more favorable terms for borrowers, including lower interest rates, loan forgiveness programs, and income-driven repayment plans. However, it has also contributed to rapidly rising student debt, which can have costly implications for the federal budget and place serious economic burdens on borrowers.
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1960s: City University of New York started charging tuition fees
State universities in the United States have not historically been free for students. In fact, US colleges, starting with Harvard in 1636, have a long history of charging fees. However, there was a time when some state universities were tuition-free.
The Morrill Land-Grant Act of 1862 awarded land to states, and the state universities constructed under this act did not charge tuition. The first land-grant institution created by the Morrill Act was Kansas State University, established on 16 February 1863. The University of Virginia, founded in 1825 by Thomas Jefferson, was also meant to be tuition-free from its inception.
In 1868, the University of California system was created with the decree that "admission and tuition shall be free to all residents of the state". This was affirmed by the state's Master Plan for Higher Education in 1960. However, by the 2012-13 school year, tuition had become the school's biggest source of "core operating funds".
The City University of New York (CUNY) is often cited as an example of a previously tuition-free university. CUNY was created in 1961 by New York State legislation, and it had an open admissions policy that allowed for the admission of minority and working-class students. However, CUNY was not able to accommodate the demand for higher education as New York City's population and public college enrollment grew during the early 20th century. As a result, higher and higher requirements for admission were imposed, and by 1965, students seeking admission to CUNY needed an average grade of 92 or A-.
In the mid-1960s, there was a spike in the number of high school graduates, and CUNY was woefully unprepared to handle the increasing demand for entrance into its tuition-free colleges. This led to a proposal in the mid-1960s to impose a $400 tuition fee for students enrolled at CUNY, which caused controversy and led to the resignation of the CUNY Chancellor and his administrative colleagues.
In 1966, shortly after being elected governor of California, Ronald Reagan proposed a tuition fee and a 10% cut from state funding. Reagan's proposal was met with protests from students, but he ultimately succeeded, and by the 1990s, every "formerly public" school began being paid for by tuition costs, which turned into student debt.
In 1970, Berkeley's student newspaper reported that the university had instituted a $150 "educational fee" in 1970, and that students were being charged more money despite the school's use of "fee language" that avoided calling these charges "tuition".
The 1976 fiscal crisis officially ended the free tuition policy at CUNY, and tuition fees were introduced for all CUNY colleges.
Today, there is a growing movement to address the issue of student debt and college affordability, with proposals ranging from loan forgiveness to universal free tuition.
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1990s: all formerly public schools became tuition-based
Free college education in the United States was once the norm. During the 19th century, college education in the United States was offered largely for free. Communities and the state would foot the bill for college tuition because students were contributing to society. They served the common good by teaching high school for a few years or by taking leadership positions within local communities. For instance, the University of California system was created in 1868 with the decree that “admission and tuition shall be free to all residents of the state.” The University of Virginia, founded in 1825, was the first state school meant to be tuition-free from its inception. The first land-grant institution created by the Morrill Act, Kansas State University, was established on February 16, 1863, and was also tuition-free. Stanford University, founded in 1891, charged no tuition for almost three decades until 1920.
However, the end of tuition-free state schools began following WWII due to social changes, specifically regarding civil rights, legislation, and student loans. In 1965, under the Johnson administration, the federal government began guaranteeing student loans provided by banks and non-profit lenders. This eventually created the Federal Family Education Loan (FFEL) program. The Higher Education Act of 1965 also pushed for greater college access for women and minorities. By the late 1960s, several state colleges began charging tuition. For example, the City University of New York and its colleges were tuition-free until the late 1960s. The University of California system also began charging a $150 "educational fee" in 1970.
By the 1990s, all formerly public schools became tuition-based. This was largely due to the success of Ronald Reagan's campaign to maintain white supremacy by making public colleges and universities expensive, thereby putting people of color in debt. As a result, the student debt crisis ensued. The shift from free to tuition-based public education was also influenced by decreasing state support for colleges over the last two decades, causing them to raise tuition fees significantly. From 1995 to 2015, tuition and fees at 310 national universities rose by nearly 180% at private schools and over 225% at public schools.
Today, there is a growing movement advocating for the return of tuition-free college education. Bernie Sanders, for instance, has argued that free tuition in public colleges and universities existed in the United States and still does in many countries worldwide. Activists and politicians propose solutions such as loan forgiveness, debt abolition, and the elimination of tuition and fees at public schools.
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Frequently asked questions
State universities in the US started charging tuition fees in the 1960s.
The cost of educating students rose significantly in the second half of the 19th century.
The increase in student loan debt and the rise in tuition fees.
Yes, some universities like Stanford University remained free until 1920.
Yes, some universities offer comprehensive tuition scholarship programs that cover fees in exchange for a pledge from the student to engage in some kind of service after graduation.
