So we are seeing the education loan globe we see today came into being
Anna: Demand for college was rising, but it still wasn’t fully affordable for students. Loans were the only option, but banks saw students – usually a bunch of 17- or 18-year-olds – as risky investments.
Collectively will come President Lyndon B. Johnson. The guy wishes a nationwide financial support when you look at the studies, which he viewed as an essential product for combating income and you may racial inequality.
Because Josh Mitchell produces within his publication “Your debt Pitfall,” this circulate place the risk towards the taxpayers in the place of banking companies. The new law produced government fund offered to youngsters with monetary you want. Thanks to these earliest funds, condition colleges was basically available with government funds to be used to possess low-notice money, nevertheless financing weren’t acquireable so you can center-group individuals up until 1978.
Sean: And here is why this period was important: It proved monumental in providing free aid to students to attend college based on their financial situation. Continue reading