This would save young Americans from going into crippling debt, but it would also make a university degree completely unaffordable for most. However, in the age of the Internet, that doesn't mean they couldn't get an education.
Consider the long term impact of this. There are a lot of different ways such a situation could go, for better and for worse.
Most of the activities of the state happen to be anti-capitalist though.
So… Yes. We can separate the two because if the state ceased it's anti-capitalist activities, this wouldn't be a problem.