the federal student loan program started in the 1960s.
the federal student loan program started in the 1960s.
when did the federal student loan program start?
1960s
in the student loan mess: how good intentions created a trillion-dollar problem (2014), authors joel and eric best identified four overlapping periods of crisis related to us student loans. the periods are: (1) 1958–1972 with the first federal student loans and the creation of sallie mae, (2) mid-1960s–1978 with high rates of default to the near impossibility of student loan discharge in bankruptcy, (3) mid-1990s-present and "crushing debt", and (4) 2012-the present with widespread economic damage.









































section::::us student loan servicers.
student debt
the federal student aid (fsa) loan portfolio balances were $896 billion at the end of 2012. the fsa managed $473 billion under the federal direct student loan program at the end of 2012. new loans originated under the program during 2012 totaled $106.7 billion. loan portfolio balances managed by the fsa for the federal family education loan program are slowly and steadily shrinking as new loans offered to students by the u.s. department of education originate under the fdsl program. most of the growth in fdsl loan portfolio balances can be attributed to new loan originations, while being the sole government program for student loans. another contributor to the rapid escalation in loan balances is due to the cost of higher education increasing rapidly, faster than inflation. students are spending and borrowing more to finance their higher-priced, higher education.
federal direct student loan program