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From Sputnik To Sallie Mae: A New History Of Federal Student Loans

admin by admin
August 2, 2021
in Loans
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Fed Warns of Peril for Asset Prices as Investors Gorge on Risk

Federal student lending began when the Soviet Union launched the satellite Sputnik and kicked off the Space Race. Senate Majority Leader Lyndon Johnson, who had benefitted from a student loan himself, pushed the federal government to create the first student loan program, which would promote science and technology education among America’s next generation. Seven years later, now-President Johnson signed into a law a successor program which he hoped would allow young people from all walks of life to attend college. Modern student lending was born.

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