The development of formal education for the Alaskan Eskimo was traced back to the 1799 schools operated by the Russian American Company through the current expansion of Bureau of Indian Affairs schools. It was maintained that the growth of these educational institutions undermined traditional Eskimo values, self respect and confidence, and general modes of living. Recent attempts to correct this dilemma using Eskimo legends and the Arctic physical and social environment were described. This paper also focuses upon the Eskimo's future, using industry and natural resources. A few recommendations for effecting change are offered, such as: (1) formal education should be of the highest quality; and (2) teachers should be Native or at least Alaskan and preferably teach in the Native tongue in lower elementary grade levels. (Author/FF)