Mini History of Federal Student Loans
Universities have been increasing cost of attendance every year since the great depression.The reason why is simple, supply and artificially inflated demand. Before World War II, higher education wasn’t readily available for everyone. Post war, the US passed the GI Bill of Rights, enabling 8 million middle class veterans to pursue a degree. Alongside the Perkins loan inaugurated in 1958 - the US continued giving government aids for new buildings, professors, exploding the higher education business into what it is today with federal aid money that made college affordable.
College-aged student attendance rose from 15% in 1940 to 40% by 1970.Then as quickly as attendance went up, aid started tumbling down.