Almost all of us love to get placed in one of the best institutions available in and around our locality. Some even wish to pursue them abroad. All they need is an institution that can give them the best education, but sometimes they do not fall within the affordable range.

If the savings or scholarships are not enough, students choose to take a loan to obtain their highest education. Students these days obtain loans with a lot of difficulties. Today there are better platforms for youngsters to showcase their talent and seek better opportunities. However, these facilities were not available earlier. We see many students with little to no money succeed and become popular. The reason behind them is student loans. So here we are going to talk about the history of educational loans.


  1. The students of Harvard University got the first student loan in the year 1840.

  2. The student loans were initially given only to Harvard students. But it was not given for students of other schools and colleges. After 27 years, Department of education was started in US to help the children to go to school. Providing the student loan didn’t start even after 27 years.

  3. The World War II was started in the year 1939 and took place for 6 years. After 5 years since World War II started, the bill was passed stating that the students who got affected by the war and lost everything can go to college for free or at low cost.

  4. In 1958, US planned to compete with Russia. Hence, under the act of law issuing of student loans was started. High school students who were studying getting good grades were even offered scholarships.

  5. In 1966, the whole country with students in need was provided with financial support. 

  6. To provide basic education an opportunity was given to the students who are in need of attending the college.

  7. In 2005, students who pay fees with the help of loans had an exemption in their fees by 4% to 1%.

  8. In 2008, the issuing of loans was not proper as the credit market problems let the private lenders stop from giving loans.

  9. In 2010, with the help of Obama private lenders started giving private student loans from the government.

  10. In 2012, the student loan debt crossed $1 trillion.

It took so many years to educate every student in the country. Anyways the US has become a developed country. The government made sure that every student goes to college without any problem regardless of past and without any problem in future, the student loans will always be given to the students who are in need. The opportunity to gain the knowledge is always a good decision for the students in the US.